Santa Maria City Council
February 7, 2023

FOR THE COUNCIL MEETING OF FEBRUARY 7, 2023

COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared By: Director of Public Works
SUBJECT: ACQUISITION OF JONES STREET PROPERTY (APN NO. 125-200-046)

FOR THE EXTENSION OF THE JONES STREET MULTIMODAL TRAIL
RECOMMENDATION:

That the City Council adopt a Resolution authorizing the acquisition of Assessor Parcel Number 125-200-046 from HT Partners, a California Limited Partnership, representing 74,923± sq. ft. (1.72± acres) of an abandoned railroad, based on the appraisal report for the total Just Compensation of $412,000 for the extension of the Jones Street Multimodal Trail.

BACKGROUND:

Both the City's adopted Active Transportation Plan (ATP) and the Transit Division's Autonomous Shuttle Feasibility Study identify the acquisition of the vacant lot abutting the northern edge of Allan Hancock Community College, and parallel to Jones Street; as necessary for the extension of the multi -use trail to facility non personal vehicle mobility between the Transit Center and the Allan Hancock Community College.

DISCUSSION:

The long narrow strip of land was once a part of the railroad corridor, but is now abandoned. The total parcel size is 74,923± sq. ft. (1.72± acres). The vacant lot is owned by HT Partners, a California Limited Partnership. Informal discussions with a representative of the property owners suggest they are amenable to an offer for the sale of the property.

Just Compensation
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 requires that a government agency offer private parties Just Compensation for the acquisition of real property. Just Compensation is defined as property owners being paid no less than (justifiable) fair market value based on the highest and best use of the property. The market value for the property is based upon an appraisal done by a certified and state -licensed appraiser, prepared using accepted appraisal principles and procedures.
1 To ensure that a fair market value is provided to the property owner, an independent appraisal has been solicited using the City's on -call Government Real Estate Acquisition Consultant, Hamner, Jewell & Associates. The appraisal has taken into consideration the highest and best use of the affected property, the size of the land, any improvements located thereon, and all other factors that affect fair market value.

The Appraisal Summary Statement (Attachment A) suggests the Total Just Compensation figure of $412,000 is representative of the fair market value of the sought property.

City staff recommends purchasing the property for the full amount the property has appraised for, subject to HT Partners conveying this property to the City free and clear of all liens and encumbrances, other than public utility easements and public rights -of -way.

The City would pay all the usual and necessary escrow, title, transfer, and recording fees associated with the purchase.

The offer is subject to environmental inspection and approval by the City of the area proposed for purchase. The purpose of this process will be to attempt to confirm whether there is any hazardous contamination within, adjacent to, or coming from the property.

The environmental inspection and approval process may include physical inspections and environmental assessments, as deemed necessary or advisable by the City, as well as other testing or inspection in the event a preliminary review indicates it is advisable. In the event the City determines that corrective or remedial action may be necessary, the City reserves the right to reduce the amount offered to reflect the corrective or remedial costs or to withdraw the offer to purchase. The inspections will be conducted at the City's expense.

Fiscal Considerations
The costs for the property acquisition would come from the Transit Enterprise Fund, as the Transit Program would be the primary beneficiary of the property. The City's Transit Program is an Enterprise Fund with its own set of local, state, and federal funding sources that are separate and distinct from the City's General Fund.

The Transit Program is proposing using its FY 22-24 Council -adopted Transit Budget CMEP PW-65 with $1,250,000 budgeted in Transit funding to support this property acquisition. Property improvements to complete and beautify the trail extension will come from a combination of Transit Division, Public Works Active Transportation Program grant funding, and Recreation & Parks grant funding.

Impact to the Community
There is no impact on the community by this action as it is largely considered an administrative item. However, the completion of this project will extend the Jones Street Multipurpose Trail and support the City's adopted ATP and Transit goals for facilitating non -personal vehicle travel.
2 Environmental Review
This does not constitute a project. Further, California State Bill 2922 (SB922) exempts transit projects from having to conduct the California Environmental Quality Act analysis until 2030.

Alternatives
Decline to authorize the City Manager, or designee to enter into negotiations for the purchase of the property from HT Partners. This alternative would, however, prevent the extension of ATP and Transit multi -module plans and would impact ATP and Recreation & Parks grant applications for the multiuse trail improvements.

BRETT FULGONI
Director Public Works
Attachments:

A. Appraisal Offer
3 HAMNER
JEWELL

ASSOCIATES

HAMNER, JEWELL & ASSOCIATES
Government Real Estate Services
Right of Way Acquisition - Relocation Assistance - Real Property Consulting Offices in Ventura, San Luis Obispo and Fresno Counties Writer's Telephone Number: (805) 773-1459
Writer's email address:
jtkatavich(a)hamner jewell.com
December 2022
Via U.S. Mail and Email to
jrisman cr towbes. com: [email protected]
mkonoske�a towbes. com: [email protected]
HT Partners, L.P.
c/o Jane Reisman
The Towbes Group
33 East Carrillo Street, Suite 200
Santa Barbara, CA 93101
Subject: City of Santa Maria — Jones Street Multi -Purpose Trail Acq. AP #125-200-046 (HT Partners)
Dear Ms. Reisman,
This is to formally present HT Partners, LP, with an offer on behalf of the City of Santa Maria to purchase your property located in Santa Maria, California. As you are aware, purchase by the City is necessary in conjunction with the Jones Street Multi -Purpose Trail Project.

To ensure that fair market value is offered to you for the purchase of this property, an independent appraisal has been made. That appraisal has taken into consideration the highest and best use of the affected property, the size of the land, any improvements located thereon, and all other factors that affect fair market value.

On the attached Appraisal Summary Statement, the Total Just Compensation figure of $412,000 represents the fair market value of the sought property, as established by this recent independent appraisal and is the amount of the offer to you for the purchase of this property.

The City hereby offers to purchase this property for the full amount offered, subject to HT Partners conveying this property to the City free and clear of all liens and encumbrances other than public utility easements and public rights of way. The City would pay all usual and necessary escrow, title, transfer, and recording fees associated with this purchase.

This offer is subject to environmental inspection and approval by the City of the area proposed for purchase. The purpose of this process will be to attempt to confirm whether or not there is any hazardous contamination within, adjacent to, or coming from the property. The environmental Corporate and San Luis Obispo County Office
Ventura County Office
Central Valley Office
530 Paulding Circle, Suite A, Arroyo Grande, CA 93420
260 Maple Court, Suite 277, Ventura, CA 93003
264 W. Fallbrook, Suite 101, Fresno, CA 93711
(805) 773-1459
(805) 658-8844
(559) 412-8710

HT Partners, LP
Re: City of Santa Maria — Jones Street Multi -Purpose Trail December , 2022

inspection and approval process may include physical inspections and environmental assessments as deemed necessary or advisable by the City, as well as other testing or inspection should a preliminary review indicate it advisable. In the event the City determines that corrective or remedial action may be necessary, the City reserves the right to reduce the amount offered to reflect corrective or remedial costs, or to withdraw this offer.

Your ongoing cooperation for access to your property for these inspections and assessments is appreciated. These inspections will be conducted at the City's expense.

We hope that you will find this offer acceptable and representative of just compensation and look forward to working with you to finalize this purchase. As the City's authorized representative, I would be happy to work with you and assist in finalizing an agreement in any way I can. If you have any questions regarding this offer, please contact me at (805) 773-1459 or by email at [email protected]. 1 look forward to your response.

Sincerely,
J.T. Katavich
California Real Estate License #02109021
Enclosures: Appraisal Summary Statement
Agreement for Acquisition of Real Property
Grant Deed
Pamphlet' `When a Public Agency Acquires Your Property
Appraisal Report
cc: Client (w/enclosures)

Pa+ue I of 4 AP #125-200-04O

APPRAISAL SUMMARY STATEMENT

BASK' DATA
PROJECT:

ASSESSOR'S PARCEL NO. (AP#):

OWNER:

PROPERTY LOCATION:

APPLICABLE ZONING:

CURRENT USE OF SUBJECT PROPERTY:

HIGHEST AND BEST USE OF SUBJECT
PROPERTY:

DATE OF VALUATION:

TOTAL PROPERTY AREA:

PROPERTY TO BE ACQUIRED:

Fee Simple:

City of Santa Maria — Jones Street Multi -Purpose
Trail Project
125-200-046
HT Partners, L.P., a California limited partnership
South Side of East Jones Street, Santa Maria,
California 93454
PF, Public Facilities (Subject Corridor segment); R-3,
High -Density Residential (across the fence parcel)
Vacant Land (Corridor segment); multifamily
residential (across the fence parcel)
Corridor use (Corridor segment); develop multifamily
residential use (across the fence parcel)
October 19, 2022
74,923± sq. ft. (1.72± acres)
ALL [X] PART [ ]
74,923± sq. ft. (1.72± acres)
IMPROVEMENTS TO BE ACQUIRED: None

BASIS OF APPRAISAL
The market value for the property to be acquired is based upon an appraisal done by a certified and state - licensed appraiser, which was prepared in accordance with accepted appraisal principles and procedures.

Recent sales of comparable properties, income data, and depreciated replacement costs are utilized as appropriate. Full consideration is given to zoning, development potential, and the income that the subject property is capable of producing. There are three approaches to value:

1. The Market Approach for the subject property is based on the consideration of comparable sales which sold within a reasonable time prior to the date of valuation, at a range of $7.41 to $23.15 per square foot. The principal transactions used as comparable sales relied upon as the basis for supporting the determination of value are attached to this Appraisal Summary Statement.

2. The Cost Approach is based in part on a replacement cost new of improvements, less depreciation. This approach was not utilized in this analysis since no structural improvements will be affected.

3. The Income Approach is based upon consideration of the income producing potential of the property. This approach was not utilized in this valuation process as it was deemed inapplicable to this specific case.

Paige 2 of 4 AP #125-200-046

VALUATION
Fee Simple:
74,923 sq. ft. @ $5.50 per sq. ft. $412,076
Improvements: None
Severance Damages: None
Benefits: None
Total Land Value:

Total Impro%ement Value:
$0
$412,076
$ 0
Total Net Damages/Benefits: $ 0
$412,076
Total Just Compensation for this Acquisition: Rounded $412,000 FOUR HUNDRED TWELVE THOUSAND DOLLARS ($412,000)
This summary of the basis of the amount offered as just compensation is presented in compliance with federal and state laws and has been derived from a formal appraisal prepared by a certified and state - licensed real estate appraiser, which includes supporting sales data and other documentation. The appraisal is hereby confirmed approved and accepted by this agency and a purchase offer based thereon is hereby approved and authorized.

City of Santa Maria
Approved for Purchase Offer and Acquisition:

By: Date:

Name:

Title:

Att: Comparable Sale List
Legal description of take area
Encl. Deed

AP #125-200-046

SUMMARY STATEMENT RELATING TO PURCHASE OF REAL PROPERTY OR AN INTEREST THEREIN Project: City of Santa Maria — Jones Street Multi -Purpose Trail Project AP#: 125-200-046 (HT Partners)
The City of Santa Maria is proposing the Jones Street Multi -Purpose I rail Project.

Your property, located in Santa Maria, California, is within the project area and identified by your County Assessor as Parcel Number 125-200-046.

Title 111 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the California Relocation Assistance and Real Property Acquisition Guidelines requires 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 unless you have heretofore waived such entitlement. You are not required to pay recording fees, transfer taxes, or the pro rata portion of real property taxes which 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 the City to be an uneconomic unit(s) which is/(are) owned by you or, if applicable, occupied by you as a tenant and which is/(are) contiguous to the land being conveyed.

3. All buildings, structures, and other improvements affixed to the land described in the referenced document(s) covering this transaction and owned by the grantor(s) herein or, if applicable, owned by you as a tenant, are being conveyed unless other disposition of these improvements has been made. The interests being acquired include 74,923 square feet in fee simple and is described in the enclosed Deed.

4. The market value of the property being purchased is based upon a market value appraisal which is summarized on the attached Appraisal Summary Statement 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 as improved;
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 being 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 which the owner is 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 costs of such an appraisal up to a maximum of $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 your contract with an appraiser. b. The selected appraiser must be licensed with the California Office of Real Estate Appraisers (OREA). It is also recommended that such appraiser be experienced and qualified in the appraisal of easements if this offer is to purchase easements rather than the fee interest in your property.
c. Within 30 days of your receipt of this offer, you must notify the City of your intent to obtain an independent appraisal.
d. Appraisal cost reimbursement requests must be made in writing, and submitted to the City within 30 days of your receipt of the independent appraisal and no later than 120 days of your receipt of this offer. Copies of the contract (if a contract was made), appraisal report, and invoice for completed work by the appraiser must be provided to the City concurrent with submission of the appraisal cost reimbursement request. The appraisal costs must be reasonable and justifiable.

6. No person in the United States of America shall, on the grounds of race, color, national origin, sex, age, or disability be excluded from the participation in, be denied the benefits of, or be otherwise subjected to discrimination under any City programs or activities. If federal funding is being utilized in the project for which your property is being sought, notice is hereby provided that it is the policy of the City to assure full compliance with Title VI of the Civil Rights Act of 1964, the Civil Rights Restoration Act of 1987, and related statutes and regulations, in all programs and activities undertaken by the City. Any person who believes they have been subjected to unlawful discriminatory practice under Title VI has a right to file a formal complaint with the City.

7. The owner of a business conducted on a property to be acquired, or conducted on the remaining property which will be affected by the purchase of the required property, may be entitled to compensation for the loss of goodwill. Entitlement is contingent upon the business owners' ability to prove such loss in accordance with the provisions of Sections 1263.510 and 1263.520 of the Code of Civil Procedure.

8. If you ultimately elect to reject this offer for the purchase of 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.

Santa Maria City/Jones Street Multi -Purpose TrailHT Partners/Appraisal Summary Statement

COMPARABLE LAND SALES SUMMARY TABLE
Salo
No.

LS -1
LS -2
LS -3
LS -4
Location
APN
502.524 Barcellus
Avenue, Santa Maria,
California
APNs: 128-067-032, -
033 and -034
NEC East Donovan
Road and Via Rubio,
Santa Maria,
California
APN: 128.013.059
NWC West Battles
Road and South
Blesser Road, Santa
Marna,
California
ADNs: 117-240-045,
-048
2712 Santa Maria
Way, Santa Maria,
California
APN: 128-090-070
(formerly 128-090-
013)
Seller
Buyer
Burt Fugate;
Fugate GST Non
Exempt Oho Trust
Affordable Housing
Specialists Group,
LLC
Shatar Holdings,
LLC
Rodeo -Grace
Investors, LLC
The Marketplace at
Westgate. LP
Westgate Village
Development, LLC
Dena Adam;
Ronald Myers
Pacific West
Communities, Inc
Sale
Date
Doc. No.

Sale Price Zoning
4/15/22 52,400,000
2022-
0018685
4/15/22 5426,000
2022-
0018731
6/7/21 52,400,000
2021-
0042867
R-3, High -
Density
Residential
CPO,
Commercial
& Prof.

Office
CC.

Convenience
Center
Size Sale Sale
(Acre) Price Per Price
Size Square Per
(59 Foot Door

2.380± 523.15 530,000
103,672±

0.5603 517.46 521,300
24,3933

7.4401
324,086±
5/7/21 5927,000 C-2, General 1.225±
2021- Commercial 53,3802
0035914

57.41 519,048
$17.37 511,000
Across-
the-
rence
Percel
929 E. Jones Street,
Santa Maria,
California
APN: 125-160-011
Appraisal
R-3, High -
Density 2.7501
Residential
119.790±_

EXHIBIT A

LEGAL DESCRIPTION
Real property in the City of Santa Maria, County of Santa Barbara, State of California, described as follows:

PARCEL 2 AS SHOWN ON THAT CERTAIN MAP ENTITLED, "PARCEL MAP HANCOCK TERRACE - TRACT 5989", IN THE CITY OF SANTA MARIA, COUNTY OF SANTA BARBARA, STATE OF CALIFORNIA, RECORDED SEPTEMBER 3, 2014 IN BOOK 64, PAGES 82 AND 83 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

APN: 125-200-046

AP NO.: 125-200-046 (HT Partners, LP)
PROJECT: City of Santa Maria — Jones Multi -Purpose Trail TITLE REPORT NO.: 4001-6908876

AGREEMENT FOR ACQUISITION OF REAL PROPER FY
(WITH ESCROW INSTRUCTIONS)
THIS AGREEMENT is entered into this day of
20 , by and between the City of Santa Maria, a California municipal corporation (hereinafter called "Buyer") and HT Partners, L.P., a California limited partnership (hereinafter called "Seller"), for acquisition by Buyer of certain real property as hereinafter set forth.

IT IS HEREBY MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS:

I. AGREEMENT TO SELL AND PURCHASE. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, upon the terms and for the consideration set forth in this agreement, all that certain real property (hereinafter called "Property") situated in the City of Santa Maria, County of Santa Barbara, State of California, and legally described as follows:

See Legal Description attached as Exhibit A hereto.

2. PURCHASE PRICE. The total purchase price, payable in cash through escrow, shall be the sum of FOUR HUNDRED TWELVE THOUSAND DOLLARS ($412,000). Said sum is deemed full and complete compensation for the Property and any and all improvements made to the Property and located thereon. Seller's receipt of said payment shall release Buyer from any and all further claims, costs, and liabilities associated with this purchase, other than the obligations specifically contained in this Agreement. The parties agree that the purchase price is deemed full and complete just compensation for the Property. Said sum shall be paid upon the close of escrow, which shall occur when title to the Property has vested in Buyer free and clear of all liens, encumbrances, assessments, easements and leases, recorded or unrecorded, except for recorded public utility easements and public rights of way.

3. CONVEYANCE OF TITLE. Seller agrees to convey by Grant Deed to Buyer marketable fee simple title to the Property free and clear of all recorded and unrecorded liens, encumbrances, assessments, easements, leases and taxes, EXCEPT:

A. Taxes for the fiscal year in which this transfer occurs.

B. Quasi -public utility, public alley, public street easements and rights of way of record.

C. Items numbered 1 through 10 of the above referenced title report dated September 29, 2022, issued by First American Title Company, Order No. 4001-6908876.

4. TITLE INSURANCE POLICY. Escrow Agent shall, following recording of deed to Buyer, provide Buyer with a CLTA Standard Coverage Policy of Title Insurance in the amount of $412,000 issued by First American Title Company showing title to the Property APN: 125-200-046 Santa Maria City/Jones Multi -Purpose Trail/HT Partners/Agreement I of 6

vested in Buyer, subject only to the exceptions set forth in Paragraph 3 hereinabove, and the printed exceptions and stipulations in said policy. Buyer agrees to pay the premium charged therefor.

5. ESCROW. Buyer agrees to open an escrow in accordance with this Agreement at an escrow of Buyer's choice. This Agreement constitutes the joint escrow instructions of Buyer and Seller, and Escrow Agent to whom these instructions are delivered is hereby empowered to act under this Agreement. The parties hereto agree to do all acts necessary to close this escrow in the shortest possible time.

Seller has executed a deed to Buyer, for deposit into escrow concurrently with this Agreement.

As soon as possible after opening of escrow, Buyer will deposit the executed deed, with Certificate of Acceptance attached, with Escrow Agent on Seller's behalf. Buyer agrees to deposit the purchase price upon demand of Escrow Agent. Buyer and Seller agree to deposit with Escrow Agent any additional instruments as may be necessary to complete this transaction.

Insurance policies for fire or casualty are not to be transferred, and Seller will cancel his own policies after close of escrow.

All funds received in this escrow shall be deposited with other escrow funds in a general escrow trust account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by check or wire transfer from such account.

ESCROW AGENT IS AUTHORIZED AND INSTRUCTED TO COMPLY WITH THE FOLLOWING TAX ADJUSTMENT PROCEDURE:

A. Pay and charge Seller for any unpaid delinquent taxes and/or any penalties and interest thereon, and for any delinquent or non -delinquent assessments or bonds against the Property;
B. Escrow is not to be concerned with pro -ration of Seller's taxes for the current fiscal year if this escrow closes between July 1 and November I unless current tax information is available from title insurer between October 15 and November 1.

In the event said tax information is available, Seller's taxes shall be pro -rated in accordance with Paragraph "C" below. From July 1 until November 1 and the ensuing period, when the tax information referred to above is not available, Seller's pro -rata portion of taxes due to close of escrow, shall be cleared and paid by Seller, outside of escrow, pursuant to provisions of Section 5082 through 5090 of the Revenue and Taxation Code of the State of California.

C. From the date that tax information is available, as per Paragraph "B" above, up to and including June 30, Seller's current taxes, if unpaid, shall be pro -rated to date of close of escrow on the basis of a 365 -day year in accordance with Tax Collector's pro -ration requirements, together with penalties and interest if said current taxes are unpaid after December 10 and/or April 10. At close of escrow, a check payable to the County Tax Collector for Seller's pro -rata portion of taxes shall be forwarded to Buyer with closing statement;
APN: 125-200-046 Santa Maria City/Jones Multi -Purpose TraiUHT Partners/Agreement 2 of 6

D. Any taxes which have been paid by Seller, prior to opening of this escrow, shall not be prorated between Buyer and Seller, but Seller shall have the sole right, after close of escrow, to apply to the County Tax Collector of said County for refund of such taxes which may be due Seller for the period after Buyer's acquisition pursuant to Revenue and Taxation Code Section 5096.7.

ESCROW AGENT IS AUTHORIZED TO, AND SHALL:

E. Pay and charge Seller for any amount necessary to place title in the condition necessary to satisfy Paragraph 3 of this Agreement;
F. Pay and charge Buyer and Seller for any escrow fees, charges and costs payable under Paragraph 6 of this Agreement;
G. Disburse funds and deliver deed when conditions of this escrow have been fulfilled by Buyer and Seller.

H. Record the Deed (marked for return to Buyer) with the Santa Barbara County Recorder, which shall be deemed delivered to Buyer;
I. Cause the Title Policy to be issued;
J. Prepare and deliver to both Seller and Buyer one signed copy of Escrow Agent's closing statement showing all receipts and disbursements of the escrow; K. Deliver to Buyer the Foreign Investment in Real Property Tax Act ("FIRPTA") and the Withholding Affidavit; and
The term "close of escrow", if and where written in these instructions, shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder.

Recordation of instruments delivered through this escrow is authorized if necessary or proper in the issuance of said policy of title insurance.

All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the parties hereto. Any amendment of, or supplement to, any instructions must be in writing.

TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE AS SOON AS POSSIBLE. If (except for deposit of money by Buyer, which shall be made by Buyer upon demand of Escrow Agent before close of escrow) this escrow is not in condition to close within 90 days from date of these instructions, any party who then shall have fully complied with his instructions may, in writing, demand the return of his money or Property; but if none have complied no demand for return thereof shall be recognized until five (5) days after Escrow Agent shall have mailed copies of such demand to all other parties at their respective addresses shown in these escrow instructions, and if any objections are raised with said five (5) day period, Escrow Agent is authorized to hold all papers or documents until instructed by a court of competent jurisdiction or mutual instructions. If no demands are made, proceed with closing this escrow as soon as possible.

APN: 125-200-046 Santa Maria City/Jones Multi -Purpose Trail/HT Partners/Agreement 3 of 6

Responsibility of Escrow Agent under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4, 5, 6, 8, 9, and 10 and to its liability under any policy of title insurance issued in regard to this transaction.

6. ESCROW FEES CHARGES AND COSTS. Buyer agrees to pay all usual escrow, title and recording fees, charges and costs which arise in this escrow, except any costs specifically associated with providing clear title to the Property to Buyer in accordance with the provisions of Paragraph 3 of this Agreement, which costs shall be borne by Seller.

7. TESTING, INSPECTION, ENTRY ON PREMISES, AND RESPONSIBILITY FOR CONDITION OF PREMISES. Seller grants to Buyer, and its authorized agents, permission to enter upon the Property at all reasonable times prior to close of escrow for the purpose of making all such inspections, tests, borings, samplings, and other such investigations as Buyer shall deem reasonable to determine the physical condition of the Property, including, but not limited to, the existence of termite damage and infestation, asbestos, lead -based paint and other surface coverings, and the existence on, or contamination of the Property by "hazardous materials". Should Buyer discover any physical condition of the Property which Buyer deems unacceptable, Buyer may terminate this Agreement and cancel the escrow, by giving written notice to Seller and escrow holder, within sixty-five (65) days after the date of Buyer's execution of this Agreement. Upon receipt of written notice of Buyer's intent to terminate this Agreement, escrow holder shall return all money and documents deposited in escrow to the party originally making such deposit, and neither party shall have any further obligation to the other under this Agreement. Buyer's failure to give written notice of termination of this Agreement within the timeframe allowed shall be deemed Buyer's acceptance of all such conditions of the Property as Buyer could have discovered by reasonable inspection, testing, boring, sampling, and other investigations of the Property.

As used in this Agreement, the term "hazardous materials" means all flammable, explosive, noxious, toxic, or otherwise dangerous materials, wastes, products, or substances, the handling, use, discharge, or release of which is regulated or the contamination by which is prohibited by any federal, state, or local statute, ordinance, rule, or regulation, including, but not limited to, those substances defined as "hazardous substances," "hazardous materials," or "toxic substances" in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq.; The Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; The Resource Conservation & Recovery Act, 42 U.S.C. Section 6901, et seq.; and also including those substances defined as '`hazardous waste" in Section 25117 of the California Health and Safety Code or as "hazardous substances" in Section 25316 of the California Health and Safety Code; and those chemicals to which reference is made in the Safe Drinking Water and Toxic Enforcement Act of 1986, Section 25249.5, et seq. of the California Health and Safety Code.

8. SELLER'S WARRANTIES. Seller warrants that they own the Property, and that they are authorized to sell the Property, under the terms and conditions specified herein, and that to Seller's knowledge, there are no toxic or hazardous wastes or materials, including asbestos, attributable to or affecting the property. Seller's warranties survive the close of escrow.

APN: 125-200-046 Santa Maria City/Jones Multi -Purpose Trail/HT Partners/Agreement 4 of 6

9. COUNTERPARTS. This Agreement may be executed in counterparts, each of which so executed shall irrespective of the date of its execution and delivery be deemed an original, and all such counterparts together shall constitute one and the same instrument.

10. CLOSING STATEMENT. Seller hereby authorizes and instructs Escrow Agent to release a copy of Seller's closing statement to Buyer for the purpose of ascertaining if any reimbursements are due Seller.

11. TAX REPORTING AND WITHHOLDING--NON-FOREIGN STATUS. The Foreign Investment in Real Property Tax Act of 1980, as amended by the Tax Reform Act of 1984, and subsequent amendments places special requirements for tax reporting and withholding on the parties to a real estate transaction where the transferor (Seller) is a non-resident alien or non -domestic corporation or partnership, or is a domestic corporation or partnership controlled by a non-resident or non-resident corporation or partnership.

Seller hereby advises Buyer that Seller is NOT a "foreign person" for the purposes of Section 1445 (as may be amended) of the Internal Revenue Code of 1954, as amended, and any regulations promulgated thereunder, and that, in accordance with the provisions of Section 1445, Seller shall execute an affidavit under penalty of perjury setting forth Seller's name, address, federal tax identification number, and certifying that Seller is not a "foreign person" in accordance with the provisions of the Internal Revenue Code.

It is specifically understood and agreed by Seller that closing of this escrow is subject to, and contingent upon, deposit into escrow, or notification to Escrow Agent by Buyer, of receipt of said Affidavit.

12. JUDGMENT IN LIEU OF DEED. In the event Seller is unable to deliver title in a reasonable time under the terms of this Agreement, Buyer may file an action in eminent domain to pursue the acquisition of this Property, and this Agreement shall constitute a stipulation which may be filed in said proceedings as final and conclusive evidence of the total amount of damages for the taking, including all of the items listed in Section 1260.230 of the Civil Procedure, regarding this Property.

13. MISCELLANEOUS TERMS. The terms, conditions, covenants and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto.

This Agreement contains the entire agreement between the parties, and neither party relies upon any warranty or representation not contained in this Agreement.

This Agreement is subject to and conditioned upon approval and ratification by the City Council of the City of Santa Maria. This Agreement is not binding upon Buyer until executed by the appropriate City official(s) acting in their authorized capacity.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first set forth hereinabove.

APN: 125-200-046 Santa Maria City/Jones Multi -Purpose Trail/HT Partners/Agreement 5 of 6

SELLER:

FIT Partners, L.P., a California limited partnership
By:

Name:

Title:

Dated:

By: Dated:

Name:

Title:

MAILING ADDRESS OF SELLER:

HT Partners, L.P.
33 East Carrillo Street, Suite 200
Santa Barbara, CA 93101
BUYER:

City of Santa Maria, a California municipal corporation By: Dated:

Name:

Title:

By: Dated:

Name:

Title:

BUYER MAILING ADDRESS:

City of Santa Maria
110 E. Cook Street
Santa Maria, CA 93454
APN: 125-200-046 Santa Maria City/Jones Multi -Purpose TraiViIT Partners/Agreement 6 of 6

Recording requested by:
1 lamner, Jewell & Associates
Government Real Estate Services
When recorded, mail to:

City of Santa Maria
Attn: City Clerk
110 E. Cook Street
Santa Maria, CA 93454
Exempt from the $75 Building and Jobs Act Fee per Gov't Code §27388.1(2XD) Public Agency No fee pursuant to Government Code § 6103
No Documentary Transfer Tax per R&T Code *11922
No Recording Fee per Government Code § 27383

GRANT DEED
(To the City of Santa Maria)
APN: 125-200-046
For a valuable consideration, receipt of which is hereby acknowledged, HT Partners, L.P., a California limited partnership (hereinafter referred to as "Grantor"), hereby grants to the
City of Santa Maria, a California municipal corporation (hereinafter referred to as "Grantee"),
the real property in the City of Santa Maria, County of Santa Barbara, State of California described in Exhibit "A" and depicted in Exhibit "B", attached hereto and incorporated herein.

Executed this day of , 20
GRANTOR:

HT Partners, L.P., a California limited partnership
By: Dated:

Name:

Title:

By: Dated:

Name:

Title:

APN: 125-200-046
City of Santa Maria/Jones Multi -Purpose Trail/HT Partners/Grant Deed 1 ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of
On before me, , Notary
Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of
On before me, , Notary
Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
APN: 125-200-046 City of Santa Maria/Jones Multi -Purpose Trail/1f11'artners/Grant Deed 2 CERTIFICATE OF ACCEPTANCE
This is to certify that the City of Santa Maria hereby accepts for public purposes the real property, or interest therein, described in that deed dated , from HT Partners, L.P., a California limited partnership, Grantor therein, to the City of Santa Maria, Grantee therein, and consents to the recordation thereof.

In Witness Whereof, I have hereunto set my hand this day of , 20 City of Santa Maria
By
Name:

Title:

ATTEST:

By
Name:

Title:

APN: 125-200-046 City of Santa Maria/Jones Multi -Purpose Trail/TIT Partners/Grant Deed 3 EXHIBIT A

LEGAL DESCRIPTION
Real property in the City of Santa Maria, County of Santa Barbara, State of California, described as follows:

PARCEL 2 AS SHOWN ON THAT CERTAIN MAP ENTITLED, "PARCEL MAP HANCOCK TERRACE - TRACT 5989", IN THE CITY OF SANTA MARIA, COUNTY OF SANTA BARBARA, STATE OF CALIFORNIA, RECORDED SEPTEMBER 3, 2014 IN BOOK 64, PAGES 82 AND 83 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

APN: 125-200-046

H
NER

ASSOCIATES
Government Real Estate Services
a division of
Beacon Integrated Professional Resources, Inc.

When a Public Agency
Acquires Your Property
This booklet describes many of the important features of the California Relocation Assistance and Real Property
Acquisition Guidelines specified in Title 25, Chapter 6 of the California Code of Regulations. It also gives general information about public acquisition of real estate (real property) that should be useful to you.

Most real property acquisitions by a public agency are
covered by the Guidelines. If you are notified that your property will be acquired for such a project, it is important that you learn your rights.

This booklet may not answer all of your questions. If you have more questions about any potential sought purchase of your property by a public agency, please feel free to contact a representative from Hamner, Jewell and Associates.

Contact Your Acquisition Agent:

J.T. Katavich
Hamner, Jewell & Associates
Phone (805) 773-1459
Fax (805) 773-2418
[email protected]
California Real Estate License DRE# 02109021
Hamner, Jewell & Associates 2020

JL General Questions
ASsocIATES
What Right Has Any Public Agency To Acquire My Property? The Federal Government and every State and local government have certain powers which are necessary for them to operate effectively. For example, they have the power to levy taxes and the power to maintain order.

Another government power is the power to acquire private property for public purposes.This is known as the power of eminent domain.

The rights of each of us are protected, however, by the Fifth and Fourteenth Amendments of the United States Constitution and by State constitutions and eminent domain laws which guarantee that if a public agency takes private property it must pay "just compensation" to the owner.

Who Made The Decision To Buy My Property?
The decision to acquire a property for a public project usually involves many persons and many determinations.

The final determination to proceed with the project is made only after a thorough review which may include public hearings to obtain the views of interested citizens.

If you have any questions about the project or the selection of your property for acquisition, you should ask your acquisition agent.

How Will The Agency Determine How Much To Offer Me For My Property? Before making you an offer, the Agency will obtain at least one appraisal of your property by a competent real property appraiser who is familiar with local property values. The appraiser will inspect your property and state his/her professional opinion of its current fair market value in an appraisal report. After the appraiser has completed the work, the Agency reviews and checks the work to assure that the estimate is fair and the work conforms with professional appraisal standards.

The Agency must offer you "just compensation" for your property.This amount cannot be less than the appraised fair market value of the property. "Just compensation" for your property does not cake into account your relocation needs. If you are eligible for relocation assistance, it will be additional.

What Is Fair MarketValue?
Fair market value is sometimes defined as that amount of money which would probably be paid for a property in a sale between a willing seller, who does not have to sell, and a willing buyer, who does not have to buy. In some areas, a different term or definition may be used.

The fair market value of a property is generally considered to be"just compensation." Fair market value does not take into account intangible elements such as sentimental value, goodwill, business profits, or any special value that your property may have for you or for the Agency.

Hamner, Jewell & Associates 2020 Page - I

H

ASSOCIATES
AppraisingYour Property
How Does An Appraiser Determine The Fair MarketValue Of My Property? Each parcel of real property is different, and therefore, no single formula can be devised to appraise all properties.

Among the factors an appraiser typically considers in estimating the value of real property is:
• How it compares with similar properties in the area that have been sold recently. • How much it would cost to reproduce the buildings and other structures, less any depreciation. • How much rental income it could produce.

Will I Have A Chance To Talk To The Appraiser?
Yes, you will be contacted and given the opportunity to accompany the appraiser on his/her inspection of your property.You may then inform the appraiser- of any special feature which you believe may add to the value of your property. It is in your best interest to provide the appraiser with all the useful information you can in order to ensure that nothing of allowable value will be overlooked. If you are unable to meet with the appraiser, you may wish to have a person who is familiar with your property represent you.

When Will I Receive A Written Purchase Offer?
Generally, this will depend on the amount of work required to appraise your property and the status of the Agency's project schedule. After the appraisal has been reviewed (and any necessary correction obtained), the Agency will determine just compensation and give you a written purchase offer in that amount along with a "summary statement,' explaining the basis for the offer. No negotiations are to take place before you receive the written purchase offer and summary statement.

What Is In The Summary Statement Of The Basis For The Offer Of Just Compensation? The summary statement of the basis for the offer of just compensation will include:
• An accurate description of the property and the interest in the property to be acquired. • A statement of the amount offered as just compensation. (If only part of the property is to be acquired, the compensation for the part to be acquired and the compensation for damages, if any, to the remaining part will be separately stated.)
A list of the buildings and other improvements covered by the offer. (If there is a separately held interest in the property not owned by you and not covered by the offer: e.g., a tenant -owned improvement, it will be so identified.)
Must I Accept The Agency's Offer?
No. You are entitled to present your evidence as to the amount you believe is the fair market value of your property and to make suggestions for changing the terms and conditions of the offer.The Agency will consider your evidence and suggestions. When fully justified by the available evidence of value, an increase in the offer price will be made. If you would like to hire your own appraiser, the Agency is required to reimburse you for the actual reasonable costs, not to exceed $5,000, of one independent appraisal of the property interest sought by the Agency.The appraiser you hire must be licensed by the State Office of Real Estate Appraisers.

Hamner, Jewell & Associates 2020 Page - 2

L Negotiations
J
.L—I.SSOCIATES
May Someone Represent Me During Negotiations?
Yes. If you would like an attorney or anyone else to represent you during negotiations, please inform the Agency.

However, State Guidelines do not require the Agency to pay the costs of such representations.

How Do I Know I Will Be Treated Fairly?
No person in the United States ofAmerica shall, on the grounds of race, color, national origin, sex, age, or disability be excluded from the participation in, be denied the benefits of, or be otherwise subjected to discrimination under any public programs or activities. If federal funding is being utilized in the project for which your property is being sought, the acquiring agency will assure full compliance with Title VI of the Civil Rights Act of 1964, the Civil Rights Restoration Act of 1987, and related statutes and regulations. Any person who believes they have been subjected to unlawful discriminatory practice under Title VI has a right to file a formal complaint with the acquiring agency.

If I Reach Agreement With The Agency, How Soon Will I Be Paid? If you reach a voluntary agreement to sell your property and your ownership (title to the property) is clear, payment will be made at a mutually acceptable time. Generally, this should be possible within 30 to 60 days after you sign a purchase contract. If the title evidence obtained by the Agency indicates that further action is necessary to show that your ownership is clear, you may be able to hasten the payment by helping the Agency obtain the necessary proof. (Title evidence is basically a legal record of the ownership of the property. It identifies the owners of record and lists the restrictive deed covenants and recorded mortgages, liens, and other instruments affecting your ownership of the property.)
What Happens If I Don't Agree To The Agency's Purchase Offer? If you are unable to reach a voluntary agreement through negotiations, the Agency may file a suit in court to acquire your property through an eminent domain proceeding. Eminent domain proceedings are often called condemnations. If your property is to be acquired by condemnation, the Agency will file the condemnation suit without unreasonable delay.

Hamner, Jewell & Associates 2020 Page - 3

H J L
Condemnation Procedures

ASSOCIATES
What Happens After The Agency Condemns My Property?
You will be notified of the action. Condemnation procedures vary, and you should learn the procedures which apply in your case. Your acquisition agent can explain these procedures. In most instances, when an Agency files a condemnation suit, it must deposit with the court (or in an escrow account) an amount not less than its appraisal of the fair market value of the property. You should be able to withdraw this amount, less any amounts necessary to pay off any mortgage or other liens on the property and to resolve any special ownership problems.

Withdrawal of your share of the money will not affect your right to seek additional compensation for your property.

During the condemnation proceeding, you will be provided an opportunity to introduce your evidence as to the value of your property. Of course, the Agency will have the same right. After hearing the evidence of all parties, the court will determine the amount of just compensation. If that amount exceeds the amount deposited by the Agency. you will be paid the difference, plus any interest that may be provided by law.

To help you in presenting your case in a condemnation proceeding, you may wish to employ an attorney and an appraiser. However, in most cases the costs of these professional services and other costs which an owner incurs in presenting his or her case to the court must be paid by the owner.

What Can I Do If I Am Not Satisfied With The Court's Determination? If you are not satisfied with the court judgment, you may file an appeal with the appropriate appellate court for the area in which your property is located. If you are considering an appeal, you should check on the applicable time limit for filing the appeal and consult with your attorney on whether you have a basis for the appeal. The Agency may also file an appeal if it believes the amount of the judgment is too high.

Will I Have To Pay Any Settlement Costs?
You will be responsible for the payment of the balance of any mortgage on your property. Also, if your ownership is not clear, you may have to pay the costs of clearing it. But the Agency is responsible for all reasonable and necessary costs for:
• Typical services required to complete the sale, recording fees, revenue stamps, transfer taxes and any similar expenses which are incidental to transferring ownership to the Agency. • Penalty costs and other charges related to prepayment of any recorded mortgage on the property that was entered into in good faith.
• Real property taxes covering the period beginning on the date the Agency acquires your property.

Whenever possible, the Agency will make arrangements to pay these costs directly. If you must incur any of these expenses yourself, you will be repaid --usually at the time of settlement. If you later discover other costs for which you should be repaid, you should request repayment from the Agency immediately.The Agency will assist you in filing a claim. Finally, if you believe that you were not properly repaid, you may appeal the decision to the Agency.

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jE L What Happens Next?

ASSOCIATES -
May I Keep Any Of The Buildings Or Other Improvements On My Property? Very often many or all of the improvements on the property are not required by the Agency. This might include such items as a fireplace mantel, your favorite shrubbery, or even an entire house. If you wish to keep any improvements, please let the Agency know as soon as possible.

If you do arrange to keep any improvement, the Agency will deduct only its salvage value from the purchase price you would otherwise receive. (The salvage value of an item is its probable selling price if offered for sale on the condition that the buyer will remove it at his or her own expense.) Of course, if you arrange to keep any real property improvement, you will not be eligible to receive a relocation payment for the cost of moving it to a new location.

Can The Agency Take Only A Part Of My Property?
Yes. But if the purchase of only a part of your property reduces the value of the remaining part(s), you will be paid for the loss in value. Also, if any remaining part would have little or no utility or value to you, the Agency will offer to buy that remaining part from you.

Occasionally, a public project will increase the value of a remaining part which is not acquired by the agency.

Under some eminent domain laws, when this occurs, the amount of the increase in value is deducted from the purchase price the owner would otherwise receive.

Will I Have To Pay RentTo The Agency After My Property Is Acquired? If you remain on the property after acquisition, you may be required to pay a fair rent to the Agency. Such rent will not exceed that charged for the use of similar properties in similar areas.

How Soon Must I Move?
If possible, a mutually agreeable date for the move will be worked out. Unless there is an urgent need for your property (e.g., your occupancy would present a health or safety emergency), you will not be required to move without at least 90 days advance written notice.

If you reach a voluntary agreement to sell your property, you will not be required to move before you receive the agreed purchase price. If the property is acquired by condemnation, you cannot be required to move before the estimated fair market value of the property has been deposited with the Court so that you can withdraw your share.

If you are being displaced from a dwelling unit, you will not be required to move before a comparable replacement home is available to you.

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H

SSOCIATES
Money Matters
Will I Receive Relocation Assistance?
State Guidelines require that certain relocation payments and other assistance be provided to families, individuals, businesses, farms, and nonprofit organizations when they are displaced or their personal property must be moved as a result of certain Agency activities.

A full explanation of any relocation assistance to which you may be entitled will be provided to you. If you have any question about such assistance, please contact your relocation representative. In order for the Agency to fulfill its relocation obligations to you, you must keep the Agency informed of your plans.

My Property Is Worth More Now. Must I Pay Capital Gains Tax On The Increase? In most cases when a public agency acquires real property for public purposes, the property owner may postpone the payment of Federal capital gains taxes on any profit from the sale if he or she reinvests the profit in similar property within a certain replacement period.To take advantage of this right, you should review the rules and file the details in a statement with your Federal income tax return for the tax year in which you realize the gain.

Internal Revenue Service (IRS) Publication 544 explains how the Federal income tax would apply to a gain or loss resulting from the condemnation of real property, or its sale under the threat of condemnation, for public purposes. If you have any questions about the IRS rules, you should discuss your particular circumstances with your personal tax advisor or your local IRS office.

I'm A Veteran. How About My VA Loan?
After yourVA home mortgage loan has been repaid, you will be permitted to obtain anotherVA loan to purchase another property. Check on such arrangements with your nearestVeterans Administration Office.

Is It Possible To Donate Property?
Yes. You may donate your property or sell it to the Agency for less than its fair market value. The Agency must obtain an appraisal of the property and offer just compensation for it, unless you release the Agency from these obligations.

Additional Information
If you have further questions after reading this booklet, please contact:

J.T. Katavich
Hamner, Jewell & Associates
Phone (805) 773-1459
Fax (805) 773-2418
[email protected]
California Real Estate License DRE# 02109021
We are available to answer any questions you may have!
Hamner, Jewell & Associates 2020 Page - 6

HAMNER

A JEWELL
t-ISSOCIATES
Government Real Estate Services

APPRAISAL REPORT FOR

ACQUISITION OF CORRIDOR SEGMENT

JONES STREET CORRIDOR PROPERTY

PREPARED FOR

CITY OF SANTA MARIA

SUBMITTED BY

HAMNER, JEWELL & ASSOCIATES
Jeremy Bagott, MAI, Al-GRS
Appraisal Manager
PHONE (805) 658-8844
[email protected]
WWW.HAMNER-JEWELL.COM
HAMNER, JEWELL & ASSOCIATES I WWW.HAMNER-JEWELL.COM

HAMNER
JEWELL

ASSOCIATES
Government Real Estate Services
November 4, 2022
City of Santa Maria
c/o J.T. Katavich
Hamner, Jewell & Associates
530 Paulding Circle, Suite A
Arroyo Grande, CA 93420
Re: Acquisition of Corridor Segment
Jones Street Corridor Property
APN: 125-200-046
Dear Mr. Katavich,
1 have completed the appraisal of rights relating to the above -referenced property for a proposed project.

The accompanying Appraisal Report presents the data, analyses and rationale used in the appraisal process to arrive at the appraiser's opinion of value. The level of discussion contained in this report is relevant to the needs of the client and of the assignment's intended use. The report presents the descriptive and factual data, the assumptions and conditions affecting the appraisal, and the findings and analyses that lead to and support my opinion of value. I am not responsible for unauthorized use of this report. Every effort has been made to conform to the Standards of Professional Practice of the Appraisal Institute, which fully incorporate the Uniform Standards of Professional Appraisal Practice. I have also intended to comply with applicable laws.

The undersigned conducted the appraisal and prepared the report.

The client and any additional intended users should be aware that the California Bureau of Real Estate Appraisers has not submitted the "2020-2021 Uniform Standards of Professional Appraisal Practice" to a required notice -and -comment rulemaking pursuant to the procedures and standards set forth in California's Administrative Procedure Act (Government Code § 11340 et seq.). In addition, 1 CCR § 20 requires documents incorporated by reference into a state regulation

J.T. Katavich
Proposed Acquisition of Corridor Segment
APN: 125-200-046
City of Santa Maria
"be incorporated by title and date of publication or issuance." This has not been done. Absent a required rulemaking, the "2020-2021 Uniform Standards of Professional Appraisal Practice" are not recognized by the State of California and are likely not enforceable in the state.

This letter of transmittal is considered part of the attached report and must not be separated from the report. The date of this letter is considered the report date.

I thank you for this opportunity to provide you with professional appraisal services.

Jae emy Bagott/ MAI, Al-GR$
ppraisal Manager
Certified General Real Estate Appraiser
California Certificate No. AG031250
Hamner, Jewell & Associates
260 Maple Court, Suite 277
Ventura, CA 93003
Phone: (805) 658-8844

Contents
KEY FACTS AND FINDINGS 1
INTRODUCTION 4
COUNTY OVERVIEW 11
CITY OVERVIEW 19
NEIGHBORHOOD OVERVIEW 21
MARKET OVERVIEW 21
DESCRIPTION OF SUBJECT CORRIDOR SEGMENT 24
CORRIDOR SEGMENT/ATF PROPERTY DESCRIPTION 32
PROJECT DESCRIPTION AND PROPOSED ACQUISITIONS 38
HIGHEST AND BEST USE ANALYSIS 39
VALUATION 42
APPRAISER CERTIFICATIONS 53
ADDENDUM 55

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

KEY FACTS AND FINDINGS
Project Valuation for Full -Fee Acquisition of Corridor Segment
Assessor's Parcel (Corridor Segment) 125-200-046
Owner HT Partners, LP (per LandVision)
Property Location South Side of East Jones Street
Santa Maria, CA 93454
Across -the -Fence Parcel 929 East Jones Street
Santa Maria, CA 93454
APN: 125-160-011

2.75± Acres (119,790± SF)
Applicable Zoning PF, Public Facilities (Subject Corridor Segment).

R-3, High -Density Residential (Across -the -Fence
Parcel)
Use as of Effective Date of Value (Corridor Segment) Vacant land (ATF Parcel) Multifamily residential
Appraised Use Vacant land
Interest Appraised Fee Simple (Undivided Fee Rule)
Highest and Best Use of the Subject Corridor Segment: Corridor use. (As Vacant)
Across -the -Fence Parcel: Develop a high -density
multifamily residential use.

Effective Date of Value October 19, 2022
Date of Inspection October 19, 2022
Total Land Area (Corridor Segment) 1.72± Acres (74,923± SF) Property to be Appraised Across -the -fence parcel and corridor segment Improvements to be Acquired None
Hamner, Jewell & Associates Government Real Estate Services 1

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Basis of the Appraisal
The three accepted approaches to value are the sales comparison approach, the income approach and the cost approach. An across -the -fence methodology was used in this appraisal assignment as the rights being sought affect a corridor. This will be discussed later in this report.

The sales comparison approach is a method that compares the property being appraised with similar properties that have sold within a relevant time frame. It involves making qualitative or quantitative comparisons to the subject and then applying units of comparison to indicate a value for the selected across -the -fence parcel and then the corridor segment. The approach is the most common and preferred method when an adequate supply of comparable sales is available. The sales comparables indicated a bracketed value range and are provided below:

Based on the previous discussion, the sale comparables indicate the subject bracketed value range is from $17.46 to $23.15 per square foot. See the array below:

Sale No.

ATF Value
Less Than/
Greater Than
Sale Price Per Square Foot
LS -1
517.46
$17.37
$7.41
Competitive properties were compared based on a unit of comparison that is consistent with market practices.

The income approach converts a property's anticipated benefits into a value. Typically, the annual net income is capitalized at a market -derived capitalization rate to provide an indication of value. The income approach is most often used for income -producing properties or real estate acquired as an investment.

The income approach is not considered applicable to this appraisal assignment, as vacant land doesn't typically lend itself to capitalization methods.

The cost approach is used to derive a value by estimating the current cost to construct a replacement/reproduction of the existing structure(s), deducting depreciation and adding land value. It is most often used when valuing properties with new or relatively new improvements and special -use properties. The cost approach is not relevant for vacant land.

Based upon analysis discussed later in this report, we applied a 0.25 factor to the base land value previously arrived at for the subject corridor.

Hamner, Jewell & Associates Government Real Estate Services 2

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Concluded ATF
Value / SF
Corridor
Factor
Final Value / SF
$22.00 0.25 $5.50

VALUE OF THE CORRIDOR SEGMENT PER SQUARE FOOT (LAND)

VALUE OF THE PERMANENT ACQUISITION
Land Acquisition:

Fee Acquisition
74,923 SF X $5.50/SF
FAIR MARKET VALUE (AS OF OCTOBER 19, 2022)
= $ 5.50
= $ 412,076
Market Value of Proposed Acquisitions
Land $ 412,076
Rounded
$ 412,000
Hamner, Jewell & Associates Government Real Estate Services 3

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

INTRODUCTION

CLIENT, INTENDED USE, INTENDED USER
The client is the City of Santa Maria. An additional intended user is Hamner, Jewell & Associates. The purpose of the engagement is for the appraiser to determine a fair -market value for a full -fee acquisition.

The intended use is to assist the client in developing an offer to purchase the aforementioned property.

PROPERTY IDENTIFICATIONS
The subject corridor segment and rights appraised are described in several sections of this report.

SCOPE OF WORK
This appraisal report relates to the property affected by the aforementioned proposed project. Unless otherwise stated, the date to which the opinions of value apply is the date of inspection for the subject corridor segment identified herein. The opinions of value are stated in terms of cash, or terms equivalent to cash. Note: In discussing the scope of work below, the term "subject" is used to mean both the corridor segment and/or the selected across -the -fence parcel depending on context. The scope of work involved is summarized as follows:
• Inspection of the subject property and neighborhood.
• Assembling, screening and analysis of data relating to the subject property and the market area. • Research of the subject's region, community and neighborhood to determine market influences. • Research public records to confirm information about the subject and comparable sales to help ensure they are factually correct and to identify any terms or atypical influences that affect price or value.
• Determination of relevant valuation methods.
• Research of sales, listings, and offers to purchase involving properties considered competitive with the subject property within the subject's market area or competing market areas. • Interview with market participants, to the extent possible. • Analysis of each comparable in comparison with the subject to infer appropriate value. • The valuation of the property involved an investigation and analysis of the improvement areas, as well as the entire regional area, for social, economic, governmental, and environmental forces and trends that affect or could influence property values. Listed below are some of the contacts, documents and information sources used in preparation of the report. 1) Examination of public records from pertinent government agencies, such as the county assessor's office, planning department and tax collector's office. 2) Review of pertinent flood and seismic information.

Hamner, Jewell & Associates Government Real Estate Services 4

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
3) Study of proposed project acquisitions, whether temporary or permanent, in such form as plats, legal descriptions, plans and sketches.
4) Research of zoning and general plan land -use designations obtained from the planning departments and websites for applicable cities, counties or both. 5) Research of events such as sales, listings, offers and option signings during a period five years preceding the effective date of value for each subject property.

Market participants were interviewed to glean information about sales of competing properties and supply -and -demand issues in the local market.

Sales of comparable properties were verified with participants directly involved in, or knowledgeable about, the transaction unless otherwise noted. Sales, listings, expired listings and pending sales were sought and, if found to be relevant, considered in this analysis, with primary reliance placed on closed sales.

RIGHT-OF-WAY APPRAISALS
Appraisals for public acquisitions involve acquiring fee title or easement rights from an owner.

PARTIAL ACQUISITION INTEREST ANALYSIS
The partial acquisition, also known as "partial -fee acquisition," starts with an estimate of fair market value for the "undivided fee" interest of the subject corridor segment using the most applicable method for valuing similar properties.

FULL -INTEREST ANALYSIS
The full -interest analysis is the acquisition of all property rights using the applicable valuation methodology.

SPECIAL ASSIGNMENT CONDITIONS
None

DEFINITIONS
Fair Market Value
(a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
(b) The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable.

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The Code goes on to say that:

The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following:

A) The project for which the property is taken.

B) The eminent domain proceeding in which the property is taken.

C) Any preliminary actions of the plaintiff relating to the taking of the property.

Source: Section 1263.320 of the California Code of Civil Procedure Across -the -fence (ATF) method
A land valuation method often used in the appraisal of corridors. The across -the -fence method is used to develop a value opinion based on comparison to abutting land.

Source: The Dictionary of Real Estate Appraisal, Appraisal institute, 6th Edition, P. 3 Compensation for Property Taken
Compensation shall be awarded for the property taken. The measure of this compensation is the fair market value of the property taken.

Source: Section 1263.310 of the California Code of Civil Procedure Larger Parcel
In governmental land acquisitions and in valuation of charitable donations of partial interests in property such as easements, the tract or tracts of land that are under the beneficial control of a single individual or entity and have the same, or an integrated, highest and best use. Elements for consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use. In most states, unity of ownership, contiguity, and unity of use are the three conditions that establish the larger parcel for the consideration of severance damages. In federal and some state cases, however, contiguity is sometimes subordinated to unitary use.

Source: The Dictionary of Real Estate Appraisal, Appraisal Institute, 6th Edition P. 127 Damage to Remainder
Damage to the remainder is the damage, if any, caused to the remainder by either or both of the following:
(a) The severance of the remainder from the part taken. (b) The construction and use of the project for which the property is taken in the manner proposed by the plaintiff whether or not the damage is caused by a portion of the project located on the part taken.

Source: Section 1263.420 of the Code of Civil Procedure Hamner, Jewell & Associates Government Real Estate Services 6

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Benefit to Remainder
Benefit to the remainder is the benefit, if any, caused by the construction and use of the project for which the property is taken in the manner proposed by the plaintiff whether or not the benefit is caused by a portion of the project located on the part taken.

Source: Section 1263.430 of the Code of Civil Procedure Hypothetical Condition
A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis.

Source: Uniform Standards of Professional Appraisal Practice 2018-2019 Edition, P. 4

PROPERTY RIGHTS DEFINED
Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

Source: The Dictionary of Real Estate Appraisal, Appraisal Institute, 6th Edition, P. 90 Easement
The right to use another's land for a stated purpose. Access or right-of-way easements may be acquired by private parties or public utilities. Governments may be the beneficiaries of easements placed on privately owned land that is dedicated to conservation, open space, or preservation.

Source: The Appraisal of Real Estate (14th Edition), Appraisal Institute, Chicago, Illinois, 2013, P. 75 Temporary Easement
An easement granted for a specific purpose and applicable for a specific time period. A construction easement, for example, is terminated after the construction of the improvement and the unencumbered fee interest in the land reverts to the owner.

Source: The Dictionary of Real Estate Appraisal, Appraisal Institute, 6th Edition P. 231 Noncompensable Damages
The following types of damages have been found by the courts not to be compensable, or in certain respects, may be compensable only under laws other than those of eminent domain. Therefore, the following noncompensable damages should generally not be included in real property acquisition valuations:
• Damages to business
• Expenses for moving personal property
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• Temporary damage to the use and occupancy of property reasonably incident to construction requirements
• Damages due to annoyance and inconveniences suffered by the public in general • Circuity of travel caused by dividing a highway
• Rerouting or diversion of traffic or changing of a two-way street to a one-way street; and • In general, all those types of damages that can be considered to be conjectural, speculative and remote.

Source: Ca!trans Appraisal Policies and General Requirements, 387.09.03.00 Undivided Fee Rule
A condemnor generally instructs its appraiser to value the property as if the title were held by a single entity. This procedure has won court approval and is often referred to as the "unit rule" or the "undivided fee rule." The rule requires valuing property as a whole rather than by the sum of the values of the various interests into which it may have been carved, such as lessor and lessee, life tenant and remainderman, etc. This is an application of the principle that it is the property, not the various titles, which is being taken.

Source: Real Estate Valuation in Litigation, 2nd Edition.

GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This report and the value opinions herein are subject to the following assumptions and limiting conditions.

1. The appraiser assumes title to the property is marketable and in good order.

2. The appraiser assumes the appraised property is competently managed.

3. The appraiser assumes that data, maps, and descriptive materials provided by the client or other consultants and their representatives are accurate and correct.

4. The appraiser does not assume any responsibility for matters of law or legal interpretation. The appraiser is not an attorney at law.

5. The appraiser assumes property boundaries, as portrayed in exhibits or other materials provided by the client, or as they appear on the ground, are correct. Unless otherwise stated, the appraiser has not commissioned any surveys of the property.

6. The appraisal is made based on the premise that there are no encumbrances prohibiting utilization of the property under the appraiser's estimate of highest and best use.

7. The appraiser shall not be required to give testimony or appear in court by reason of this appraisal with reference to the property described in this report unless prior arrangements are made.

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8. The report is to be considered in its entirety and use of only a portion will invalidate the appraisal.

9. The valuation is based on information from sources believed reliable, and the appraiser assumes that such information is correct and accurately reported.

10. Possession of this report does not carry with it the right of publication. No part of it may be reproduced by any means nor disseminated to the public in any way without the prior written consent of the appraiser. Nor may it be used for any purpose or function other than those stated in the report, or by anyone other than the client without the prior written consent of the appraiser. Such consent will only be granted subject to proper qualifications and arrangements, possibly including the payment of an additional fee.

11. The report is subject to review by duly authorized representatives of the Appraisal Institute for the purpose of upholding ethics and standards. This means that the appraisers must supply a copy of the report to the Appraisal Institute, if requested.

12. It is not the intention of the appraisers or the appraisal firm to assume any liability with regard to this appraisal from any user other than the client. Any person or entity that obtains or reads this report, other than the client, expressly assumes all risk of damages to himself or third persons arising out of reliance on this report, and waives the right to bring any action based on the appraisal. Neither the appraiser, nor Hamner, Jewell & Associates, shall have any liability to any such person or entity.

13. Neither the appraiser nor the appraisal firm shall be in any way responsible for any costs incurred to discover or correct any physical, financial, and/or legal deficiencies of any type present in the subject property.

14. Any value estimates contained herein are subject to the purpose, date, and definition of value stated in the report.

15. No responsibility is assumed for building permits, zone changes, engineering, or any other services or duty connected with legally utilizing the subject property.

16. Unless otherwise stated in this report, the appraiser observed no signs of hazardous compounds at the property, but it should be noted that the appraiser is not qualified to detect such substances. Except as where it may be discussed in the report, the appraiser has no knowledge of the existence of such materials on or in the property. The existence of substances such as volatile organic compounds, asbestos, polychlorinated biphenyls or other potentially hazardous materials may significantly affect the value of a property. The appraisal assumes there is no such material on or in the property that would bring about a loss in value. The appraiser recommends the client consult a professional in such matters.

17. It is assumed that any conditions that would affect the use and value of the property are discoverable through normal investigation.

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18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey and /or analysis of this property to determine whether it is in conformity 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 the ADA could reveal that the property does not comply with one or more elements of the ADA. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, the appraiser did not consider possible noncompliance with the requirements of the ADA in estimating the value of the subject property. Unless otherwise noted in this appraisal, it is assumed that the property appraised is not substantially impacted by this law. The appraiser is not an expert in ADA matters.

EXTRAORDINARY ASSUMPTIONS
This report and its value conclusions are expressly subject to the following extraordinary assumptions.

The use of an extraordinary assumption can affect the results of an appraisal.

1. Rail corridors are often subject to contamination, as diesel fuel from locomotives, discharge from tanker cars and spillage from hopper cars can concentrate chemicals and heavy metal ores along trackage areas. The appraiser did not observe any toxic or hazardous substances during inspection, though the appraiser is not qualified to detect such substances and the site boundaries are extensive. This analysis assumes no toxic hazards are present on the site.

HYPOTHETICAL CONDITIONS
This report and the value conclusions it contains is expressly subject to the following hypothetical conditions. The use of a hypothetical condition can affect the results of an appraisal.

1. The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following: 1) the project for which the property is taken: 2) the eminent domain proceeding in which the property is taken; and 3) any preliminary actions of the plaintiff relating to the taking of the property (California Code of Civil Procedure, Section 1263.330). Therefore, the fair market value of the subject corridor segment assumes the property is appraised as if there is no project.

2. It is a hypothetical condition, for valuation purposes, that the selected across -the -fence parcel is vacant land.

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COUNTY OVERVIEW

OVERVIEW OF SANTA BARBARA COUNTY
Santa Barbara County, population 446,499, is situated along the Central Coast of California. The county seat is the eponymous city of Santa Barbara. The county contains two geographic spheres of influence.

Economic activity differs significantly between the northern and southern portions of the county. The South County's economy relies most heavily on engineering, education, resource extraction and tourism, while North County's economy relies most heavily on activities such as winemaking, ranching and agriculture.

PHYSICAL/GEOGRAPHIC ATTRIBUTES
The county is located approximately 100 miles northwest of Los Angeles and 300 miles south of San Francisco. It occupies 2,774 square miles, one-third of which is located in the Los Padres National Forest.

Bordered on the west and south by the Pacific Ocean, the county has 110 miles of beaches, a little over half being south -facing beaches. The county is well-known for its mild climate, picturesque coastline, scenic mountains, and numerous parks and beaches.

The physical divide between the north and south portions of the county as germane to the discussion. The Santa Ynez Mountains, which run along the east -west portion of the Santa Barbara coast, serve as the boundary distinguishing "North County" (Ballard, Buellton, Guadalupe, Lompoc, Los Alamos, Los Olivos, Santa Maria, Santa Ynez, Solvang) from "South County" (Carpinteria, Goleta, Montecito, Santa Barbara, and Summerland).

The primary mountain ranges of Santa Barbara County are the Santa Ynez Mountains in the south, and the San Rafael Mountains and Sierra Madre Mountains in the interior and northeast.

The sparsely populated Cuyama Valley is situated north of the mountains in Santa Barbara, Ventura and San Luis Obispo counties. Ranching, petrochemical production and agriculture are primary land uses in the Cuyama Valley; portions to the north and northeast are owned by the Bureau of Land Management and the Nature Conservancy.

Santa Barbara County has four distinct geographic areas:

Santa Barbara Coast: Located in the southern portion of the county, this area is bordered on the south by the Pacific Ocean and on the north by the Santa Ynez Mountain range, one of the few mountain systems in North America that run east -west rather than north -south. Because of the unique north and south borders, and its year round mild Mediterranean climate, Santa Barbara has been described by many as the American Riviera.

Santa Ynez Valley: Located in the central portion of the county between the Santa Ynez and San Rafael mountain ranges, this area includes the communities of Buellton, Solvang, and Santa Ynez, as well as the Chumash Reservation. Lake Cachuma is also nestled between the mountain ranges, offering recreational activities and a water supply to the county. The valley's climate has recently attracted many winemakers to the area, adding vast vineyards to the rolling hills that lead to the Los Padres National Forest.

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Santa Maria Valley: Located in the northern portion of the county, this area is bordered by San Luis Obispo County on the north. Much of the new development within the county has taken place here and, as a result, the area has experienced much change in the past decade.

Lompoc Valley: Located in the western portion of the county, this area includes Vandenberg Space Force Base, which is a major contributor to the economy. Lompoc Valley is the least populated area within the county.

Together these areas contribute to the unique profile of the county.

The aforementioned Lake Cachuma and Bradbury Dam are located on the Santa Ynez River about 25 miles northwest of Santa Barbara. Bradbury Dam is owned and operated by the U.S. Bureau of Reclamation and was completed in 1953. Water is diverted from the reservoir through the 6.4 mile Tecolote Tunnel through the Santa Ynez Mountains to the South Coast region. From the tunnel outlet, the water is carried through the 24 mile South Coast Conduit. About midway down the conduit, water is treated at Santa Barbara's Cater Water Treatment Plant and distributed to residents within the city's service area, as well as put back into the conduit for delivery to residents in Montecito, Summerland and Carpinteria.

Unincorporated areas of Santa Barbara County alone contain 1,650 lane miles of roads. This includes 100 bridges, 9,000 street trees, 48 signalized intersections, and 15,000 street signs as well as pavement markings, painted curbs, and raised traffic markers. Major freeways and arterials are as follows:

U.S. Route 101, or U.S. Highway 101, is a north -south United States Numbered Highway that runs through the states of California, Oregon, and Washington. It is the largest arterial running through Santa Barbara County.

State Route 1 is a major north -south state highway that runs along most of the Pacific coastline of California. At a total of just over 656 miles, it is the longest state route.

State Route 33 is a north —south state highway. It runs north from U.S. Route 101 in Ventura through the Transverse Ranges and the western side of the San Joaquin Valley to Interstate 5 at a point east of Tracy.

State Route 135 acts as a western bypass of U.S. Route 101 in northern Santa Barbara County that runs through the community of Los Alamos and the center of the city of Santa Maria.

State Route 144 is a state highway that runs through Sycamore Canyon in Santa Barbara. It travels along Sycamore Canyon Road from its intersection with Alameda Padre Serra at the Five Points Roundabout to Stanwood Drive.

State Route 154 is a state highway that runs from Los Olivos to Santa Barbara, crossing the San Marcos Pass in the Santa Ynez Mountains.

State Route 166 transits the county briefly, connecting the Central Coast to the southern San Joaquin Valley, running from State Route 1 in Guadalupe and through Santa Maria in Santa Barbara County to State Route 99 in Mettler in Kern County.

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State Route 192 runs from State Route 154 near Santa Barbara to State Route 150 near the Santa Barbara -Ventura county line. The two-lane road is better known as Foothill Road, as the route runs parallel to the foothills of the Santa Ynez Mountains.

State Route 217 is a state highway that serves as a spur route from U.S. Route 101 to the University of California, Santa Barbara.

State Route 246 is a state highway that runs from Lompoc east to Solvang and Santa Ynez, cutting through the Santa Ynez Valley and the Santa Barbara Wine Country.

California is seismologically active. The San Andreas Fault enters the state from the Pacific Ocean near Port Arena and runs about 800 miles southeast. It averages, according to one source, more than 250 minor events each year. A University of California study found that the stress levels are high along this fault.

Fault activity in Santa Barbara County continues to result in ground rupture, major ground -shaking, subsidence, uplift and mountain building, landform compression and extension.

ECONOMIC ATTRIBUTES
Mainstays of the county's economy include engineering, resource extraction (particularly petroleum extraction and diatomaceous earth mining), winemaking, agriculture, and education. The software development and tourism industries are important employers in the southern part of the county.

According to a 2019 Regional Growth Forecast compiled by the Santa Barbara County Association of Governments:
• Historically, job growth in Santa Barbara County has generally tracked state and national growth. • Job growth in the county has trailed the state average since 1990 but is projected to equal the state average growth rate to 2050. Job levels in the county grew much more slowly than the nation between 1990 and 2007 as defense cuts affected the county more than the state or the nation. Job growth did outpace the national average between 2007 and 2017 and is projected to slightly outpace the national average to 2050.
• There are three larger sectors where the Santa Barbara County share of total jobs is substantially different from the California share: Farm, Government, and Leisure and Hospitality, due to the importance of agriculture, the U.C. campus, Vandenberg Space Force Base and tourism in the county.
• A lower share in the Professional and Business Services sector is one of the factors restraining future job growth as this sector is the largest high -wage growth sector in the state and nation. • The county is home to a major U.C. campus that will attract high -wage job growth associated with campus activity. In addition, the county will see a modest increase in high -wage Internet related and professional service jobs as it is an attractive place to live and work. Tourism will be a plus for the county, and the county's job growth potential is supported by the trend for more in - commuting.

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• Government jobs are projected to grow at a slower pace than population as school enrollment remains near current levels as a result of declining birth rates. • The number of self-employed workers is projected to increase in part as a result of the growth of the gig economy.
• Job growth is forecast to range from a high of 7% in the 2021-2025 period to 3% from 2026 onward.
• Overall job growth slows everywhere as population growth slows and a higher percentage of residents will be retired reducing the local labor force even with the longer working lives expected for older workers.
• The majority of the region's jobs are located in the South Coast, with 133,000 jobs or 60% of the total. The North County has 89,000 jobs, or 40% of the total. • UCSB has 10,700 jobs or 5%, Vandenberg Space Force Base has 6,200 jobs or 3%, and the Santa Ynez Reservation has 1,700 jobs or one percent of the total jobs. • The City of Santa Barbara has the majority of countywide jobs with 72,300 jobs or 32% of the total, followed by the city of Santa Maria with 41,600 jobs or 19% of the total.

The unemployment rate in the Santa Barbara County was 2.7% in September 2022, down from a revised

2.9% in August 2022, and below the year-ago estimate of 4.5%. This compares with an unadjusted unemployment rate of 3.7% for California and 3.3% for the nation during the same period. The oil and gas industry has been a major industry in Santa Barbara County for over a century. Active oil and gas fields in the county include the following:

Onshore Oil and Gas Fields: Barham Ranch, Capitan, Careaga Canyon, Casmalia, Cat Canyon, Elwood, Harris Canyon, Jesus Maria, Lompoc, Orcutt, Point Conception, Russell Ranch, Santa Maria Valley, South Cuyama and Zaca.

Offshore Oil and Gas Fields in State Waters: Carpinteria, Elwood, South Elwood and Gaviota, Offshore Oil and Gas Fields in Federal Waters: Hondo, Pescado, Pitas Point, Point Arguello, Point Pedernales, Sacate, Santa Clara (Grace), Sockeye and Tranquillon Ridge.

The northern portion of Santa Barbara County contains a large military base, the aforementioned Vandenberg Space Force Base. There is a unique set of employee skills, manufacturing expertise, pooling of knowledge, relationships to distribution channels, customer service capabilities and longevity in aerospace and defense in Lompoc, relating to civilian employment at the base.

GOVERNMENTAL ATTRIBUTES
Santa Barbara County was established by an act of the State Legislature on February 18, 1850. The county is a general law county and political subdivision of the State of California. The county seat is the eponymous city of Santa Barbara.

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Its board of supervisors is vested with legislative authority and the responsibility to set county policy. The board is responsible for, among other things, passing ordinances, adopting the annual operating and capital budgets, appointing committee members and the county executive officer, approving federal and state grants, and various land -use matters.

The county has 25 departments responsible for county services. Five departments are headed by elected officials: the auditor -controller; county clerk, recorder, and assessor and registrar of voters; district attorney; sheriff; and treasurer -tax collector- public administrator. The chief probation officer and the court executive officer are appointed by the judges of the local superior courts. The other department heads are by and large appointed by the county executive office with a few exceptions by statute.

The county executive officer works with departments, constituents, and community entities to analyze particular issues that arise within respective areas of responsibility, and submit recommendations and resolutions to the board for action. In addition the county executive office is responsible for preparing and presenting the operating and capital budgets to the board and making recommendations for the overall administration of the county. Numerous other boards, commissions, and committees assist and have advisory roles. All department heads, elected or appointed, are ultimately responsible for their respective department's daily operations and are legally responsible for controlling spending.

The county is divided into five Supervisorial Districts based on population as required by state statute.

Members of the board of supervisors are elected from each district, by the voters of that district, to serve staggered four-year terms. The chair of the board is elected by, and from, the other members of the board.

The board exercises the powers of the county.

Universities and colleges of note in Santa Barbara County include Allan Hancock College, Santa Barbara Business College, Santa Barbara City College and the University of California, Santa Barbara.

The University of California, Santa Barbara, is situated on 1,055 acres on the California coast about 100 miles northwest of Los Angeles. It has a faculty size of 1,086. In addition to five Nobel Prize winners, UCSB's faculty includes many elected members or fellows of the American Academy of Arts and Sciences, the National Academy of Sciences, the National Academy of Engineering, and the American Association for the Advancement of Science. The school offers more than 200 majors, degrees, and credentials through its five schools and graduate division.

Santa Barbara County is served by Amtrak trains and Greyhound Lines buses. The southern part of the county is served by the Santa Barbara Metropolitan Transit District. The cities of Lompoc, Santa Maria, and Buellton/Solvang have their own bus services.

The North County contains the aforementioned Vandenberg Space Force Base, previously Vandenberg Air Force Base. As of 2010, Vandenberg was home to the 14th Air Force, 30th Space Wing, 381st Training Group, the Western Launch and Test Range, and elements of the U.S. Missile Defense Agency, and is responsible for satellite launches for military and commercial organizations, as well as testing of intercontinental ballistic missiles, including the Minuteman III ICBMs.

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Vandenberg is assuming new roles with the creation of the Joint Functional Component Command for Space. Its location makes it possible to easily launch satellites into polar orbit, in contrast to the Kennedy Space Center. This, along with its location relative to the jet stream, makes Vandenberg a good site to launch reconnaissance satellites. Vandenberg is also used for the launch of non-military satellites into polar orbits.

Located adjacent to Vandenberg is the Lompoc Federal Correctional Complex, which consists of two main facilities: FCI Lompoc - A low security Federal Correctional Institution housing male inmates; and USP Lompoc - A United States Penitentiary housing medium security male inmates. The USP has an adjacent satellite prison camp that houses minimum security male inmates.

There is a strong multiplier effect in Lompoc and, to a lesser degree, Santa Maria, generated by Vandenberg and the Federal Correctional Complex.

The primary airport in the county is the Santa Barbara Municipal Airport, located near Goleta, west of Santa Barbara. It is owned and operated by the city of Santa Barbara. The airport encompasses 952 acres of land, of which 400 acres represent aviation uses; 100 acres are commercial and industrial use; and 450 acres are dedicated to the Goleta Slough Ecological Reserve. As of mid -2010, the airport served five major airlines that flew to eight non-stop destinations.

Other airports in the county include the Santa Maria Public Airport, which is located just southwest of Downtown Santa Maria. It has two asphalt runways: one 8,004 feet long and another 5,189 feet long.

Lompoc Airport, which has one asphalt runway 4,600 feet long, is located on the north side of Lompoc.

Santa Ynez Airport is a public airport located one mile southeast of the central business district of Santa Ynez. The airport covers 125 acres and has one 2,804 -foot runway.

The county's Energy, Minerals and Compliance Division oversees oil and gas activities in offshore Santa Barbara County, the onshore facilities that support those offshore operations, onshore oil and gas development, surface mining, and renewable energy projects. Its oversight includes planning, policy development, permit processing, environmental review, permit compliance, and public outreach. Its purpose is to provide a comprehensive review of permit applications, condition compliance, implement mitigation programs, and respond to various policy issues.

SOCIAL ATTRIBUTES
In summation, the story of Santa Barbara County is really one of two societal and geographic spheres of influence. There are significant differences in economic activity between the northern and southern portions of the county.

As discussed previously, the economic base of the southern portion of Santa Barbara County is associated with tourism, white-collar employment and research and development. From a socio-economic standpoint, the southern part of the county is one of the most affluent communities in the nation, rivaling places like Scarsdale and the Hamptons in New York; Fairfield County in Connecticut; and Loudoun and Fairfax counties in Virginia.

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North of the Santa Ynez Mountains, however, agricultural activities and oil development have long characterized the economy. Expansive oil fields such as the Orcutt, Lompoc, Santa Maria Valley, and East Cat Canyon fields have meant employment for the north county since the first oil discovery in the Solomon Hills in 1901.

In recent years, major oil companies have left the area, turning over their leases to small independents, and decommissioning some lease areas that were no longer profitable.

The contrasting economic underpinnings of the north and south portions of the county filter through to create societal friction. This is evidenced by a decades -long grassroots effort to split the county.

Santa Barbara County had a population estimated at 446,499 in 2019. Its growth at 10 -year intervals is provided below.

Census Pop.
1920 41,097
1930 65,167
1940 70,555
1950 98,220
1960 168,962
1970 264,324
1980 298,694
1990 369,608
2000 399,347
2010 423,895
2019 (est.) 446,499
The populations of the county and its cities is provided in the table below.

Rank City Population
1 Santa Maria
2 Santa Barbara
3 Lompoc
4 Goleta
5 Carpinteria
6 Guadalupe
7 Solvang
8 Buellton
99,553
88,410
42,434
29,888
13,040
7,080
5,245
4,828
The Santa Barbara County share of the state population is forecast to trend lower with the share of state population at 1.05% by 2050.

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• Data shows that an increasing share of county jobs are being filled by people commuting from outside the county. This has the effect of lowering the projected population associated with job growth.
• The number of jobs has increased faster than the number of employed residents in the county.

Net in -commuting has more than doubled in the 20 -year, 1990-2010 timeframe from 5,000 to 11,000.
• The forecast assumes the number of net in -commuters to double over the 40 -year forecast period from 11,000 in 2010 to 22,000 by 2050.
• The countywide annual average population growth rate has ranged from over 2% between 1980-1990 to between 0.5% and 1% between 1991 and 2020. The annual average is forecast to drop to less than the historical average to 0.5% from 2026 onward. • The City of Santa Maria currently has the largest population of all jurisdictions and is forecast over the 2017-2050 period to have the highest population increase in the county with 34,600 persons, or 32%, growing its share from 24% to 27% of the total population by 2050. • Growth in all jurisdictions exceeds 7% over the 30 -year -plus forecast horizon. Future household formation rates are influenced by the aging of the baby -boomer population as more single elderly households drive rates up and, conversely, driving rates down are young adults as they delay household formation due to housing and other associated living costs. • Household growth is a proxy for housing unit demand as each new household requires a housing unit.
• Countywide household growth was the highest from 1980-1990 reaching approximately 20,000 households. From 2010-2020, household growth is forecast to be approximately half of the 1980- 1990 growth. (Household growth approximates growth in the population for each jurisdiction.) • The increase in household size, or persons per household has the potential to increase population growth without the addition of new housing units. Over the 2010-2018 period population growth countywide increased by 29% as the result of the increase in household size, versus 71% from new households.

In 2018, Santa Barbara County had a population of 447,000 people with a median age of 34 and a median household income of $77,472. Between 2017 and 2018 the population of Santa Barbara County declined from 448,150 to 446,527, a -0.362% decrease, and its median household income grew from $71,106 to $77,472, an 8.95% increase. For 2019, the population was estimated to have decreased to 446,499.

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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

CITY OVERVIEW

OVERVIEW OF SANTA MARIA
Located along U.S. Route 101, the incorporated city of Santa Maria, population 107,263, is in California's Central Coast region in northern Santa Barbara County. It is the most populous city in the county.

PHYSICAL/GEOGRAPHIC ATTRIBUTES
The Santa Maria Valley is a funnel -shaped valley. It is bounded by the San Rafael Mountains and the Los Padres National Forest to the east, and by the Solomon Hills and the Santa Maria Valley. It opens west to the Pacific Ocean.

It is considered to be in the Central Coast Region of California. The Pacific Ocean is about 12.5 miles west of city limits. It is about 65 miles northwest of Santa Barbara and about 150 miles northwest of downtown Los Angeles.

The Santa Maria River is formed at the confluence of the Sisquoc River and Cuyama River, just east of the city of Santa Maria, and flows 24.4 miles to its delta at the Pacific Ocean.

The Santa Maria Valley is a seismically active area; there are a number of nearby faults. Two major reverse faults bound the western Transverse Ranges that are lifting the Santa Ynez and San Rafael mountains.

Santa Maria River Fault is a tectonic fault. It roughly corresponds with the Santa Maria River, until it veers south toward Santa Ynez.

The major automotive transportation corridor serving Santa Maria is U.S. Route 101. It is a north —south (15. Numbered Highway that runs largely along the eastern edge of city limits. State Route 135 runs through the city on a north -south axis. Also, State Route 166 connects the Central Coast to the southern San Joaquin Valley, running from State Route 1 in Guadalupe and through the City of Santa Maria to State Route 99 in Mettler in Kern County.

ECONOMIC ATTRIBUTES
Agriculture is a key part of the city's economy. Santa Maria Valley is an American Viticultural Area. Owing to the cool growing climate, the valley is best known for its Pinot noir, Syrah, Chardonnay, and Pinot blanc.

There are an increasing number of vineyards and wineries in the Valley. Santa Maria, along with the neighboring Lompoc, Los Alamos and Santa Ynez valleys, combine to create one of the nation's largest wine -producing regions, referred to as Santa Barbara Wine Country. It is in proximity to the Santa Ynez and Foxen Canyon areas of Santa Barbara County's wine country and San Luis Obispo County's Edna Valley -Arroyo Grande wine country. Santa Maria Valley grapes are also used by wineries throughout Santa Barbara County and at many wineries far outside the county.

The agricultural areas outside the city are some of the most productive in California, with primary crops including strawberries/vegetables and wine grapes. The Santa Maria Valley contains cattle grazing land as well.

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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
In recent years, other industries have been added to the city's agricultural and retail mix, including aerospace; communications; high-tech research and development; energy production; military operations; and manufacturing. The petroleum industry has had a large presence in the area since oil was first discovered at the Orcutt Oil Field in 1902.

GOVERNMENTAL ATTRIBUTES
The city of Santa Maria is a municipal corporation governed by an elected council of five members. The council-manager form of municipal government is used, with the policy being set by the elected body and carried out by an appointed city manager.

The city council is comprised of five members, one mayor and four councilmembers. The mayor and the four members of the city council are elected for 4 -year terms by the electorate. The mayor presides at council meetings and serves as the executive and ceremonial host of city government.

The city council serves as the governing board of the Parking Authority, and the Housing Advisory and Appeals Board.

Santa Maria Area Transit (SMAT) offers service within the city of Santa Maria and in Orcutt. Most SMAT routes connect at the Santa Maria Transit Center, 400 E. Boone Street. The Breeze Bus offers a weekday commuter service, with two routes. Route 100 serves Santa Maria, Vandenberg Space Force Base, and Lompoc. Route 200 serves Santa Maria, Los Alamos, Buellton, and Solvang. SMAT's ADA Service offers curb -to -curb transportation service for individuals with disabilities.

Clean Air Express offers weekday commuter bus from Northern Santa Barbara County to Goleta and Santa Barbara. Guadalupe Flyer offers transit service between Guadalupe and Santa Maria. RTA-Route 10 (San Luis Obispo) serves Santa Maria, Nipomo, Arroyo Grande, Pismo Beach, and San Luis Obispo.

SOCIAL ATTRIBUTES
Santa Maria -style barbecue is a regional culinary tradition rooted in the Santa Maria Valley.

Santa Maria's Allan Hancock College is the home of The Pacific Conservatory of the Performing Arts, a theatrical school and production company. Notable alumni include Robin Williams, Kathy Bates, Kelly McGillis, Mercedes Ruehl, and Zac Efron. A related theatre is in Solvang in the Santa Ynez Valley.

The Santa Maria Skate Park is located in Fletcher Park. There is also the Paul Nelson Aquatic Center/Abel Maldonado Community Youth Center. Rotary Centennial Park has a basketball court, a baseball field, a large open grass area, and two playgrounds. Each year, the annual free family Kite Festival, organized by the Santa Maria Valley Discovery Museum, is held there.

Santa Maria's population was estimated at 107,263 in 2019. The city's population was 99,596 at the time of the most recent census, which showed a percent change of 7.7% over the previous census. Its average household size is 3.78. The median household income in Santa Maria is $59,336. Its population density is 4,375 population per square mile. There is a reported poverty rate of 17.1%. The median rental costs in recent years comes to $1,362 per month, and the median house value is $325,400.

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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

NEIGHBORHOOD OVERVIEW
The subject is in the incorporated City of Santa Maria. The following applies within the subject's census block:

Subject's Census Tract
Population 1,914
5 Yr Projected Pop 1,914
Households 557
Avg HH Size 3.44
Median HH Income $71,918
Median Age 29.30
% College Graduate 23%
The appraiser also looked at household income, median age, average household size and the rental occupancy rate within a one-, two- and three-mile radius of the subject.

INCOME CHARACTERISTICS
1 Mile
2 Miles 3 Miles
Median Household Income $63,251 $59,283 $66,246
Median Age 36 32 33
Average Household Size 2.97 3.91 3.86
Renter Occupancy Rate 52% 56% 48%
From the comparative data, it can be seen that as the population moves closer to the subject property, the median age of the population increases and the household size decreases. No clear trend is seen in median household income or rental occupancy rate. The latter is substantial. An increasing median age and decreasing household size indicates an older demographic with greater disposable income as one nears the subject.

MARKET OVERVIEW
The subject corridor segment is zoned PF, Public Facilities. This is not a zone that lends itself to commercial activity and few properties with this zoning and prospective use are sold in market transactions, since the focus of such properties is governmental use. It's a restricted land use that lacks the economic characteristics of other established real-estate sectors. The purpose of the zone is to provide for uses that serve the public and are generally conducted by government agencies or charitable and philanthropic nonprofit organizations. The selected across -the -fence parcel is zoned R-3, High -Density Residential. This is the land use discussed in this market overview.

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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Nationally, multifamily investment, buoyed through the first half of 2022 by rising rents, has sunk under the weight of relentless rate hikes by the federal reserve.

Apartment building sales came to a "virtual standstill" in October, according to the National Multifamily Housing Council's Chief Economist Mark Obrinsky, as buyers facing higher borrowing costs and slowing rent growth offered lower prices than sellers would go for. In a survey of 268 multifamily executives, the trade group found 89% reported sales volume had fallen over the past three months. The trade group tracks transactions on a 100 -point scale; a score below 50 signifies fewer transactions. That sales tracker registered in the single digits in November, just the third time since 1999 that activity fell that low.

In California, the multifamily land market is seeing the distorting effects of after-tax incentives and a state incursion into local land -use planning that is muddying the multifamily land market. The trend may soon spark a glut of senior -only and low-income units, sub -optimal sitings based on transit -adjacent status and the bifurcation of developers into so-called "prevailing -wage" shops that receive state favoritism but must contend with state -mandated training programs and higher cost inputs and market -driven enterprises that can remain nimble.

Over the past several years, the State of California has successfully attacked local land -use control, in effect rewriting commercial and residential zoning ostensibly to boost housing supply. New laws, to varying degrees, permit the local entitlement process to be bypassed and it muddies the way market participants — and appraisers — view real property markets. It will no doubt result in new distortions, unintended consequences, shadow markets and hidden motivations.

It is no coincidence that of the four comparables selected in the Valuation section later in this report only one is zoned for high -density residential, yet all are slated for multifamily development. The other three have commercial zonings.

For example, California's Senate Bill 35 of 2017 allows a city's requirements to be bypassed. This includes review from the Planning Commission, approval from the City Council and public comment. Senate Bill 35 allows developers to build housing on some commercially zoned land without having to seek permission from local governments, as long as a certain percentage of the housing is affordable.

Senate Bill 6 and Assembly Bill 11 allow commercial properties to be turned into housing, bypassing zoning codes and city government. Senate Bill 6 of 2022 allows residential use on commercially zoned property without requiring a rezoning. To invoke the law, however, applicants must commit both to "prevailing wages" for workers and to 'skilled and trained workforce' requirements." Assembly Bill 2011 of 2022 provides a streamlined ministerial approval pathway, comparable to SB 35 of 2017, for qualifying multifamily projects on commercial zoned land that pay prevailing wages and meet specified affordable housing targets.

A related new law, Senate Bill 9, slices through local zoning. It allows up to four new housing units on a single property in certain neighborhoods that are currently zoned for standalone houses only. The law undermines the ability of local governments to responsibly plan for the types of housing that communities need, bypasses the local government review process, and silences local communities.

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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
The California legislature imposed requirements with one hand that likely offset the benefits they granted with the other hand. The rules add costs that reduce returns and cause distortions.

Despite the national downturn in development, activity in Santa Maria has been brisk. In October, plans were announced to build "Blosser Ranch," a new large-scale rental -only housing development in Santa Maria. The project site is located along South Blosser Road, in between West Battles Road and West Stowell Road, catty -corner from the southwest corner of the Santa Maria Fairpark.

Also in October, a five -story 160 -unit senior housing project broke ground in South Santa Maria made up of modular structures.

The same month, a proposed 86 -unit apartment complex near the corner of Carmen Lane and South Blosser Road teetered on going forward pending an agreement between the city and the developer for a new bus stop.

In short, Santa Maria appears to be a bright spot on the Central Coast, with new multifamily housing being built, albeit without always the blessing of local municipal planners.

Hamner, Jewell & Associates Government Real Estate Services 23

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

DESCRIPTION OF SUBJECT CORRIDOR SEGMENT
The subject corridor segment is a single affected parcel in a channelized wash. The segment's assessor's parcel number is 125-200-046.

IDENTIFICATION OF PARCEL OWNERSHIP
Mailing Address
Representative
Telephone / Email
Owner Title of Interest
Ownership History
Tax Bill Address:
33 East Carrillo Street, No. 200
Santa Barbara, CA 93101
The Towbes Group Address:
21 East Victoria Street, Suite 200
Santa Barbara, CA 93101
Derek Hansen
Executive Vice President
The Towbes Group
(805) 698-5242 / [email protected]
Fee simple
The subject corridor segment, to the appraiser's
knowledge, is not offered for sale on the open
market or listed, under contract or under option.

Additionally, the subject corridor segment has not,
to the appraiser's knowledge, been transferred in a
sales transaction during a five-year period prior to
the effective date of value.

A letter from the property owner to the city,
acknowledging the owner's interest in the city's
potential acquisition of the subject corridor segment
is provided in the Addendum of this report. The
letter is dated May 5, 2021. The appraiser did not
send a formal notice of decision to appraise to the
property owner.

Appraiser Jeremy Bagott, MAI, AI-GRS, inspected the
subject corridor segment, as well as viewed the
across -the -fence parcel, on October 19, 2022.

Accompanying him were Derek Hansen of the
Towbes Group and J.T. Katavich of Hamner Jewell &
Associates.

Hamner, Jewell & Associates Government Real Estate Services 24 Va lua tion for Full -Fee Acquisitio n
Jones Street Corridor Segment
APN: 125-200-046
SUBJECT CORRIDOR SEGMENT (APN 125-200-046)
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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
ACROSS -THE -FENCE PARCEL (APN 125-160-011)
Hamner, Jewell & Associates Government Real Estate Services 26

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

AERIAL PHOTOGRAPH (CORRIDOR SEGMENT)
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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

SUBJECT PROPERTY PHOTOGRAPHS
Subject corridor segment and East Jones Street looking west.

Subject corridor segment and East Jones Street looking east.

Hamner, Jewell & Associates Government Real Estate Services 28

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

SUBJECT PROPERTY PHOTOGRAPHS
Subject corridor segment looking east.

Subject corridor segment and East Jones Street looking east.

Hamner, Jewell & Associates Government Real Estate Services 29

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

SUBJECT PROPERTY PHOTOGRAPHS
Continuation of corridor (looking west from westernmost end of subject).

Continuation of corridor (looking east from easternmost end of subject).

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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

SUBJECT PROPERTY PHOTOGRAPHS
Representative "across the fence" use (opposite side of East Jones Street).

Representative "across the fence" use (opposite side of East Jones Street).

Hamner, Jewell & Associates Government Real Estate Services 31

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

CORRIDOR SEGMENT/ATF PROPERTY DESCRIPTION
Lot Size Subject corridor segment: 1.72± Acres (74,923± SF) Across -the -fence parcel: 2.75± Acres (119,790± SF)
Source: Assessor's data/Plat
Shape
Frontage
Exposure
Access
Corridor: Oblong
ATF parcel: Rectangular
The subject corridor segment has approximately
1,450 feet of frontage along East Jones Street, a
public street. The across -the -fence parcel has about
475 feet of frontage along East Jones Street and
about 225 feet of frontage along South Concepcion
Avenue. The corridor segment also a small amount
of frontage (about 35 feet) along South Bradley Road
and South College Drive (about 50 feet.) The latter
frontage areas are where the corridor segment
connects adjoining corridor segments. Frontage is
not considered an element of value with a corridor
segment or with a multifamily property.

The corridor segment has good visibility from East
Jones Street. The across -the -fence parcel has
visibility from East Jones Street, a street that serves as a collector for nearby multifamily complexes, and
from South Concepcion Avenue. There is also a small
amount of exposure along South Bradley Road and
South College Drive. Exposure is not considered an
element of value with a corridor segment or with a
multifamily property with the exception of visibility
for "apartment for rent" signage.

The subject corridor segment has access from the
connecting corridor segments to the west and east.

The across -the -fence parcel can be accessed right -in, right -out, left -in and left -out from East Jones Street.

There appears to also be access to the across -the -
fence parcel via Ranch Street, which dead -ends at
the latter's northerly property line.

Topography The subject corridor segment is generally level. Its drainage appears adequate.

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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Utilities
Zoning
All utilities are to both the across -the -fence parcel and the subject corridor segment.

The subject corridor segment, as well as most or all
of Allen Hancock College, is zoned PF, Public
Facilities. The selected across -the -fence parcel is
zoned R-3, High -Density Residential.

The purpose of the PF, Public Facilities, zone is to
provide for those uses and activities which serve the
public and are generally conducted by government
agencies or charitable and philanthropic nonprofit
organizations.

The purpose of the R-3, High -Density Residential,
zone is to stabilize and maintain the residential
character of the district for high -density apartment
living with substantial space for cooperatively used
facilities and open spaces.

PF, Public Facilities
Building Site
Minimum Lot: N/A
Minimum Width: N/A
Front Yard Setback: 15 Ft.

Side -yard Setback: 10 Ft.

Rear -yard Setback: 10 Ft.

Lot Coverage: 50% Maximum
Height: 3 stories not to exceed 35 ft.

Landscaping and Open Space: 15% of site area
R-3, High -Density Residential
General Plan Maximum Density
Project size more than 1 acre: 22 dwelling units per
acre
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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Building Lot Size
Interior Lot: minimum 7,000 SF
Lot Width: 60 Ft.

Corner Lot: minimum 7,000 SF
Lot Width: 70 FT.

Front -Yard Setback: 20 Ft.

Front -Entry Garage: 20 Ft.

Side -Entry Garage: 15 Ft.

Side -yard Setback
Interior Lot: 10 Ft.

Corner Lot: 10 Ft. (Interior); 15 Ft. (Street Side)
Rear -yard Setback: 10 ft.; 20 ft. when rear yard
adjoins R-1 zone
Height: 35 Ft.

Landscape: 20% of site area
Open Landscape Area: 250 sf per dwelling unit
Special Plan None known.

General Plan Designation
Improvements
The General Plan designation, i.e., Land -Use Code,
for the ATF parcel is HDR-22, High -Density
Residential, 22 dwelling units per acre, per Mason
Denning, Assistant Planner for the City of Santa
Maria. Denning could not provide the General Plan
designation for the subject corridor segment.

The subject corridor segment contains no structural
improvements. The ATF parcel contains an
apartment complex with an unknown number of
units.

Lease, Rental and License Status Not applicable.

Permits None known,
Easements The appraiser was not provided a preliminary title report for the property.

Hamner, Jewell & Associates Government Real Estate Services 34

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
The property is appraised on an undivided fee basis.

The appraiser is not aware of any easements,
encroachments or restrictions that would adversely
affect value. This valuation assumes no such adverse
effects, and further assumes that the subject has
clear and marketable title.

Encroachments No encroachments were observed or are known.

Private Restrictions
Flood Zone
Across -the -Fence Parcel
Wetlands
None known. There is reported to be a maintenance
agreement between the property owner and Allan
Hancock College. The appraiser has not viewed this
agreement, and it is irrelevant to this appraisal
assignment.

The corridor segment, as reported by FEMA, is within
Panel No. 06083C0185F, effective 09/30/2005. It is
wholly within a Zone X, which represents an area of
minimal flood hazard.

To the south of the subject corridor segment is a
zoned public -facilities use (the grounds of Allan
Hancock College). This is not an economic use and is
unsuitable as an across -the -fence parcel. To the
north are zoned R-3, high -density residential uses
(apartment complexes). To the east and west are
continuation segments of the corridor, which was
once likely to have been a short -line railroad use to
haul agricultural products. The selected across -the -
fence parcel is therefore a high -density residential
use. The selected across -the -fence parcel, which will be used for valuation purposes later in this report, is 929 East Jones Street, Santa Maria, CA 93454, APN:
125-160-011. It is not technically an "abutting"
parcel, as it is separated by a city street, but in the appraiser's opinion, it satisfies the spirit of the
definition "across the fence."
The subject corridor segment and the selected
across -the -fence parcel are outside any known
wetlands; the appraiser saw no indication that the
property is located in a wetlands.

Seismic Information Neither the subject corridor segment nor the across - the -fence parcel is within an Earthquake Fault Zone,
Hamner, Jewell & Associates Government Real Estate Services 35

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
according to the California Geologic Study's "EQ
Zapp" application.

Cultural, Recreational and Historic Significance None known.

Toxic Hazards
Property Tax Data and Projected Taxes
The appraiser has not been provided a Phase 1
Environmental Site Assessment. The California
Water Resources Control Board shows no areas of
contamination or prior cleanups on or adjacent to
the subject corridor segment or selected across -the -
fence parcel.

Rail corridors are often subject to contamination, as
diesel fuel from locomotives, discharge from tanker
cars and spillage from hopper cars can concentrate
chemicals and heavy metal ores along trackage
areas. See the Extraordinary Assumptions section of
this appraisal for more.

The appraiser has researched the subject corridor
segment's property tax bills, as well as the across -
the -fence parcel's tax bill, through the county tax
collector and third -party services. An overview of
each is provided below:

Corridor Segment 125-200-046
Assd. Land Value $85,096
Assd. Imprv. Value $0
Homeowner's Unknown
Exclusion
Total Assd. Value $85,096
Property Tax $952
Tax Rate Code 003000
Tax Rate 1.09688%
Tax Year 2022-2023
Hamner, Jewell & Associates Government Real Estate Services 36

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
ATF Parcel
Assd. Land Value
Assd. Imprv. Value
Homeowner's
Exclusion
Total Assd. Value
Property Tax
Tax Rate Code
Composite Tax Rate
Tax Year
125-160-011
$1,090,215
$11,302,865
None
$12,393,080
$137,571
003000

1.09688%
2022-2023
The subject corridor segment and selected across -
the -fence parcel have what appear to be typical tax
rates and typical levels of special assessments
relative to comparable properties in the market. No
deductions are made for atypical taxes.

OVERALL COMMENTS
The subject corridor segment consists of 1.72± acres, or 74,923± square feet. As expected of a corridor segment, it is oblong in shape. It contains one assessor's parcel, 125-200-046, with 1,450 feet of frontage along East Jones Street. All utilities are to the site. Its topography is generally level. Its drainage appears adequate. There is pedestrian access along East Jones Street and from the grounds of the adjacent college.

The property also has pedestrian access from South College Drive and from the connecting corridor segments. Finally, the property has pedestrian access from South Bradley Road. The subject corridor segment is vacant. Off -site improvements are adequate. It is within a FEMA Zone X. The property, therefore, is not within a 500 -year -flood zone. Its zoning is PF, Public Facilities. It appears to be legally conforming.

The selected across -the -fence parcel consists of 2.75± acres, or 119,790± square feet. It is rectangular and contains assessor's parcel 125-160-011. It has frontage and access along East Jones Street and South Concepcion Avenue. All utilities are to the site. Its topography is generally level. Its drainage appears adequate. There is a garden apartment complex on the across -the -fence parcel. Off -site improvements are adequate. It is within a FEMA Zone X. The property, therefore, is not within a 500 -year -flood zone. Its zoning is R-3, High -Density Residential. It appears to be legally conforming.

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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

PROJECT DESCRIPTION AND PROPOSED ACQUISITIONS

DESCRIPTION OF PROJECT
The city wishes to acquire the subject corridor section to improve it with a pedestrian/bike path to resemble the portion of the corridor to the west.

DESCRIPTION OF PROPOSED ACQUISITION
The proposed acquisition would be a full -fee acquisition of a corridor segment identified by assessor's parcel number 125-200-046. It is along East Jones Street and it adjoins Allan Hancock College. It is unimproved.

DESCRIPTION OF THE REMAINDER
As this assignment represents the appraisal of a corridor segment using across -the -fence methodology, there is no remainder, as the theory of the larger parcel has not been used.

Hamner, Jewell & Associates Government Real Estate Services 38

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

HIGHEST AND BEST USE ANALYSIS
Highest and best use is typically defined as the reasonably probable use of property that maximizes the residual value of the land.

Four criteria characterize the highest and best use analysis. They are:

Legally Permissible Use
Those uses that are, or may be, legally permitted. This may exclude uses that are not, and unlikely to become, permitted by zoning, land -use planning, and uses forbidden by government regulations, and uses prohibited by deed restrictions or covenants.

Physically Possible Use
Those uses that are physically possible given the size, shape, topography, and other characteristics of the site.

Financially Feasible Use
Possible and permissible uses that will produce a positive net return to the owner of the property.

Maximally Productive Use
The use, among the feasible uses, that will produce the highest residual land value consistent with the rate of return warranted by the market for that use.

Properties sometimes do not contain the improvements that would yield the greatest return to the land.

For this reason, the highest and best use of the land as if it were vacant is considered, as well as the highest and best use of the property as it is currently improved, if it is improved. In unusual cases, this analysis will call into question whether the existing improvements should be preserved. But typically, the analysis shows that if a property is already improved, the continuing use of the existing improvements yields more total return to the land, with consideration of risk, than does demolishing the improvements in favor of other uses.

HIGHEST AND BEST USE AS VACANT
When appraising a property, whether improved or vacant, we first determine the highest and best use of the land only. Then, if the property is improved, we determine its highest and best use as improved, but if the improvements are unaffected by the rights proposed, the highest and best use analysis is often limited to the property as if vacant.

LEGALLY PERMISSIBLE USES
The subject corridor segment contains a single assessor's parcel. Its zoning is PF, Public Facilities. The purpose of the zone is to provide for those uses and activities which serve the public and are generally conducted by government agencies or charitable and philanthropic nonprofit organizations. It appears to be legally conforming, as the corridor is a typical public use.

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Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
The across -the -fence parcel contains assessor's parcel contains a single APN, as well. Its zoning is R-3, High -Density Residential. The purpose of the zone is to stabilize and maintain the residential character of the district for high -density apartment living with substantial space for cooperatively used facilities and open spaces. It, too, appears to be legally conforming.

PHYSICALLY POSSIBLE USES
The subject corridor segment comprises 1.72± acres, or 74,923± square feet. Its shape is oblong. It provides about 1,450 feet of frontage along East Jones Street. All utilities are to the site. The topography is generally level. Its drainage appears adequate. There is hard -corner exposure along East Jones Street.

There is pedestrian access from Jones Street, South College Drive and South Bradley Road. The subject corridor segment is vacant. Off -site improvements are adequate. It is within a FEMA Zone X. It is well - suited physically for its legally permissible uses.

The across -the -fence parcel comprises 2.75± acres, or 119,790± square feet. Its shape is rectangular. It provides 475 feet of frontage along East Jones Street. All utilities are to the site. The property also has 225± feet of frontage along South Concepcion Avenue. The topography is generally level. Its drainage appears adequate. It provides left -in, left -out, right -in, right -out access. There is a garden apartment on the across -the -fence parcel. Off -site improvements are adequate. It is within a FEMA Zone X. It is well - suited physically for its legally permissible uses.

FINANCIALLY FEASIBLE / MAXIMALLY PRODUCTIVE USES
As discussed previously, the across -the -fence parcel is zoned PF, Public Facilities. This is a restricted land use that lacks many of economic characteristics of other established real-estate sectors. Financial feasibility and maximal productivity are less relevant to public facilities land use. The multifamily market has been used as a surrogate for public -facilities land, since the selected across -the -fence parcel is zoned R-3, High -Density Residential.

In the past several years, the State of California has successfully transferred much local land -use control to Sacramento, in effect rewriting commercial and residential zoning ostensibly to boost housing supply.

It is no coincidence that of the four comparables selected in the Valuation section later in this report only one is zoned for high -density residential, yet all are slated for multifamily development. The other three have commercial zonings. Despite a national slowdown in the sector, multifamily development activity in Santa Maria has been brisk. in October, plans were announced Thursday to build "Blosser Ranch," a new large-scale rental -only housing development. The project site is located along South Blosser Road, in between West Battles Road and West Stowell Road, catty -corner from the southwest corner of the Santa Maria Fairpark. Also in October, a five -story 160 -unit senior housing project broke ground in South Santa Maria made up of modular structures. The month also saw a proposed 86 -unit apartment complex near the corner of Carmen Lane and South Blosser Road teetered on going forward pending an agreement between the city and the developer for a new bus stop. In short, Santa Maria appears to be a bright spot on the Central Coast, with new multifamily housing being built.

Hamner, Jewell & Associates Government Real Estate Services 40

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

HIGHEST AND BEST USE CONCLUSION, AS VACANT
Considering the preceding factors, it is concluded that the highest and best use of the across -the -fence parcel, as vacant, is to develop it to a high -density multifamily residential use. The highest and best use of the corridor segment is for corridor use.

HIGHEST AND BEST USE OF THE REMAINDER
As this assignment represents the appraisal of a corridor segment using across -the -fence methodology, there is no remainder, as the theory of the larger parcel has not been used.

Hamner, Jewell & Associates Government Real Estate Services 41

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

VALUATION
We have relied on the across -the -fence valuation method to develop an opinion of value of the underlying land associated with the parcel. The method is often used in the appraisal of corridors.

As discussed previously, the corridor segment totals 1.72± Acres, 74,923± square feet. It is zoned PF, Public Facilities'
We rely on the across -the -fence valuation methodology to value the underlying land associated with the subject. The method is a land valuation method often used in the appraisal of corridors. The across the fence method is typically used to develop a value opinion based on comparison to abutting land. Because the highest and best use of the subject land is for continued corridor use, the valuation method provides an appropriate method of analysis.

The method is the sales comparison approach modified to the degree that shape, size, topography and access are disregarded vis-a-vis the corridor segment. The corridor is uniquely configured to meet the highest and best use as a right of way and should not be penalized for the special physical characteristics when compared with vacant parcels in the neighborhood. We have excluded the income and cost approaches to value as they are not relevant to this property.

The sales comparison method is used in our analysis to set the base land value for the subject parcel.

Sales Comparison Approach: A value indication is derived by comparing the property being appraised to similar properties that have sold recently; making qualitative or quantitative comparisons to the subject and then applying units of comparison to indicate a value for the selected across -the -fence parcel. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of valuation when an adequate supply of comparable sales is available. Sales, listings and current escrows of comparables were considered, where appropriate, in this analysis.

Income Capitalization Approach: A value indication is derived for an income -producing property by converting its anticipated benefits (cash flows and reversion) into a value for real property interests.

Typically, the annual net income is capitalized at a market -derived capitalization rate to provide an indication of value. The income approach is most often used for income producing properties or real estate acquired as an investment.

Cost Approach: A value indication is derived for a property by estimating the current cost to construct a replacement/reproduction of the existing structure(s); deducting depreciation from all sources; and adding the land value. The cost approach is most often used when valuing properties with new or relatively new improvements, special -use properties, or properties with very dated improvements.

VALUE OF THE ACROSS -THE -FENCE PARCEL (LAND ONLY)
As part of initial due diligence, the appraiser gleans information, then organizes and analyzes it. This includes market data needed for developing a value of the subject across -the -fence parcel. Public records are searched and market participants are interviewed. The appraiser has found data relating to the sales Hamner, Jewell & Associates Government Real Estate Services 42

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
of properties deemed comparable to the selected across -the -fence parcel. The following sales were considered meaningful in providing an indication of value for the selected across -the -fence parcel. A map and summary of the comparable sales are presented as well.

COMPARABLE LAND SALES SUMMARY TABLE
Sale
No.

Location
APN
Seller
Buyer
Sale
Date
Doc. No.

Sale Price Zoning
Size Sale Sale
'Acre). Price Per Price
Size Square Per
(SF) Foot Door
LS -1
LS -2
LS -3
LS -4
502-524 Barcellus
Avenue, Santa Maria,
California
APNs: 128-067-032, -
033 and -034
NEC East Donovan
Road and Via Rubio,
Santa Maria,
California
APN: 128-013-059
NWC West Battles
Road and South
Blosser Road, Santa
Maria,
California
APNs: 117-240-045,
-048
2712 Santa Maria
Way, Santa Maria,
California
APN: 128-090-070
(formerly 128-090-
013)
Burt Fugate;
Fugate GST Non
Exempt Qtip Trust
Affordable Housing
Specialists Group,
LLC
Shatar Holdings,
LLC
Rodeo -Grace
Investors, LLC
The Marketplace at
Westgate, LP
Westgate Village
Development, LLC
4/15/22 $2,400,000
2022-
0018685
4/15/22 5426,000
2022-
0018731
6/7/21 52,400,000
2021-
0042867
R-3, High -
Density
Residential
CPO,
Commercial
& Prof.

Office
CC,
Convenience
Center

2.380± 523.15 530,000
103,672±

0.560± $17.46 521,300
24,393±

7.440±
324,086±
$7.41 519,048
Dena Adam;
Ronald Myers 5/7/21 5927,000 C-2, General 1.225± $17.37 511,000 Pacific West 2021- Commercial 53,380±
Communities, Inc 0035914
Across-
the -
Fence
Parcel
929 E. Jones Street,
Santa Maria,
California
APN: 125-160-011
Appraisal
R-3, High -
Density 2.750±
Residential
119,790±
Hamner, Jewell & Associates Government Real Estate Services 43

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

COMPARABLE LAND SALES MAP

DISCUSSION OF SALE COMPARABLES
We begin the appraisal process by searching for comparable sales with similar land use and characteristics to those found across the fence from the subject property. Where possible, comparable sales are verified with a party or broker familiar with the transaction. Secondary data sources, such as Costar, LandVision, and the Multiple Listing Services for the subject area were also relied upon for data and information regarding transactions.

The across -the -fence method bases the value of the subject parcel on the typical across the fence property. Adjustments to the comparable sales are made relative to the selected across -the -fence property. As such, it is critical to define the across the fence property.

The selected across -the -fence parcel is to the north of the subject corridor segment. It is essentially the only possibility for an across -the -fence property, since the property to the south is a public -facilities use (the grounds of Allan Hancock College). This is not an economic use and is unsuitable as an across -the - fence parcel. The selected across -the -fence parcel, which will be used for valuation purposes later in this report, is 929 East Jones Street, Santa Maria, CA 93454, APN: 125-160-011. It consists of 2.750± acres or 119,790± square feet of land. It is rectangular in shape. It appears to be legally conforming. While the selected across -the -fence parcel is currently improved with an apartment complex, for the purposes of the appraisal, it is treated as land only.

Hamner, Jewell & Associates Government Real Estate Services 44

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Although in the valuation of corridors, elements of comparison such as shape, size, topography and access are disregarded, these factors are considered when comparing the ideal across -the -fence property to comparables.

This analysis identifies the similarities and differences between the selected across -the -fence parcel and comparable properties. The primary elements of comparison include property rights, financing terms, conditions of sale (motivation), market conditions (sale date), and physical characteristics (e.g. zoning, utilities, site improvements, location, access, etc.).

The common quantitative adjustment process involves paired sales analysis that compares two or more market sales to derive an indication of the size of the adjustment for a single characteristic and applies it to the applicable data. Recognizing the weaknesses inherent in a quantitative analysis, a qualitative technique can be used. More specifically, a ranking or bracketing analysis is employed. The comparables are then analyzed to determine the relative position of the subject property within the comparable data array.

The unit of comparison for this type of land varies. Typically, investors evaluate land entitled for multifamily use on a "per door" ("per allowable unit") basis. Similarly, investors view commercially zoned properties on a "per square foot" basis. The State of California's involvement in local land -use issues (discussed previously) and unique after-tax benefits and incentives for specific project types has muddied local markets. The array in the four comparable sales used later in this section on a per -door basis is $11,000, $19,048, $21,300 and $30,000. On a price -per -square -foot basis, the array is $7.41, $17.37, $17.46 and $23.15. With the exception of the known outlier (the low sale at $7.41 per square foot), the range on a per -square -foot basis is $17.37 to $23.15. (The outlier adjusts, in the opinion of the buyer, to between $25.00 and $27.00.) Because the range is significantly narrower on a per -square -foot basis rather than per -door, the former was selected.

Based on conversations with market participants, the appraiser places an annual market -conditions adjustment of 5% on the older comparables for time, which corresponds to more than half of the rate of the current CPI inflation. Also, the appraiser examined household incomes within the comparables' census blocks as a proxy for location superiority or inferiority.

Hamner, Jewell & Associates Government Real Estate Services 45

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Comparable Land Sale 1
This 2.380 -acre (103,672 -square -foot) vacant
land parcel is situated at 502-524 Barcellus
Avenue in Santa Maria, California. It is in
Santa Barbara County. The surrounding land
uses are predominantly medical office,
single-family residential and cemetery. It is
located about one mile from the Santa Maria
civic center. The property is rectangular and
its contours are generally level. The
approximate lot depth is 250 linear feet. The
seller in the transaction was Burt Fugate;
Fugate GST Non Exempt Qtip Trust and the
buyer was Affordable Housing Specialists
Group, LLC. The date of recordation is April
15, 2022. This date is used as the sale date.

The property sold for $2,400,000. This
equates to $30,000 per allowable residential
unit (based on 80 units) or $23.15 per gross
square foot. Most elements of the sale were
confirmed by Brian Schwartz, Consultant, on 10/27/2022 by Jeremy Bagott, MAI, AI-GRS. The property sold as raw land with entitlements for an 80 -unit senior apartments project (PD 2016-0005) with a mix of one- and two -bedroom floorplans. It would require public curbs, gutters and sidewalks.

The comparable's street is also known as Bluebird Street. The transaction was facilitated via a loan from Friendly Hills Bank for $1,547,000. According to Schwartz, there was value in the entitlements, which included a zone change prior to sale from CPO to R-3. Long before the sale, Schwartz's Urban Planning Concepts helped the seller gain entitlements for a medical office project. The approval for the senior apartment project and R-3 zone change came a couple of years before the sale. The consultant characterized the site as conducive to development with no special challenges. He believes the sale was arm's -length in nature but was hesitant to assign a value to the entitlements.

This comparable is superior in location. It is inferior in its off -sites. All factors considered, the across -the - fence parcel's unit value will be below this indicator.

Hamner, Jewell & Associates Government Real Estate Services 46

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Comparable Land Sale 2
This 0.560 -acre (24,393 -square -foot) vacant
land parcel is situated at the northeast corner of
East Donovan Road and Via Rubio in Santa
Maria, California. It is in Santa Barbara County.

The surrounding land uses are predominantly
single-family residential and retail in nature. It is
located about 1.1 miles from the Santa Maria
civic center. The property is trapezoidal and its
contours are generally level. The approximate
lot depth is 105 linear feet. The seller in the
transaction was Shatar Holdings, LLC, and the
buyer was Rodeo -Grace Investors, LLC. The date
of recordation is April 15, 2022. This date is used
as the sale date. The property sold for $426,000.

This equates to $21,300 per allowable
residential unit (based on 20 units) or $17.46 per
gross square foot. This comparable was
confirmed through buyer, Dr. Robert Kitto, on
10/29/2022 by Jeremy Bagott, MAI, AI-GRS. The property's site condition is average with reported that would discourage development. Offsites include curbs, gutters and sidewalks. " no impediments
The property is located east of North Broadway. This property's sale was recorded in April 2022. There was no mention of any ongoing development in the city's development log of July 2022. The seller was Ariel Namvar, a nut farmer and investor. The buyer was Santa Maria dentist Dr. Robert Kitto and his partner, the recently deceased Pismo broker Kirby Gordon. According to Dr. Kitto, a representative of the seller approached Rodeo -Grace Investors, LLC, in this private sale. Earnest money changed hands as the Kitto and Gordon satisfied themselves that the property could be rezoned to accommodate senior housing. This reduced risk in the transaction, according to Dr. Kitto. The two trees on the property, according to Dr. Kitto, are Chinese elms and not protected by the city in any way.

This comparable is superior in location. It is also superior in size on a per -square -foot basis. This comparable is inferior in shape. It is also inferior in zoning. All factors considered, the across -the -fence parcel's unit value will be above this indicator.

Hamner, Jewell & Associates Government Real Estate Services 47

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
w.mks nd - ..
units) or $7.41 per gross square foot
Comparable Land Sale 3
This 7.440 -acre (324,086 -square -foot) vacant
land parcel is situated at NWC West Battles
Road and South Blosser Road in Santa Maria,
California. It is in Santa Barbara County. The
surrounding land uses are predominantly
multifamily residential, single-family
residential, agricultural and retail in nature. It
is located about 1.7 miles from Santa Maria's
civic center. The property is rectangular and its
contours are generally level. The approximate
lot depth is 1,100 linear feet. The seller in the
transaction was The Marketplace at Westgate,
LP and the buyer was Westgate Village
Development, LLC. The date of recordation is
June 7, 2021. This date is used as the sale date.

The property sold for $2,400,000. This equates
to $19,048 per allowable unit (based on 126
This comparable was confirmed through Ben Nikfarjam, the buyer, (310) 251-4882, on October 28, 2022, by Jeremy Bagott, MAI, AI-GRS. Site condition was average. Offsites include curbs, gutters and sidewalks along both West Battles Road and South Blosser Road. There is a drainage ditch that runs east -west along the southern property line with West Battles Road.

This property is at the northwest corner of South Blosser Road and West Battles Road. The buyer planned to develop the property with a mixed -use project that includes a 126 -unit multifamily complex and 16,000 square feet of retail space including a gas station. That was later reduced to 99 units, but at the time of sale, it was reportedly at 126 units. It will be known as Westgate Village. This property is (and was) zoned for commercial. There was considerable risk as there were no entitlements at the time of sale negotiations for a multifamily use, the only feasible use at the time, according to Nikfarjam. He believes the market value would have exceeded $4 million for the property had it been already entitled for multifamily. "I would have paid more had it been entitled for multifamily, but the property with its existing zoning was not going to pencil out at $3.9 million, the asking price." (The asking price equates to about $31,000 per allowable unit or about $12.00 per square foot.) He believes that were the zoning high -density residential, a price of $6.5 million, or $65,000 to $70,000 per allowable unit, would have been achievable. This equates to about $25.00 to $27.00 per square foot.

This comparable is inferior in conditions of sale. It is also inferior in market conditions and inferior in location. In addition, it is inferior in access and in size on a per -square -foot basis. It is inferior in zoning, as well. All factors considered, the across -the -fence parcel's unit value will be above this indicator.

Hamner, Jewell & Associates Government Real Estate Services 48

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Comparable Land Sale 4
This 1.225 -acre (53,380 -square -foot) teardown
restaurant land parcel is situated at 2712 Santa
Maria Way in Santa Maria, California. It is in
Santa Barbara County. The surrounding land
uses are predominantly auto sales and retail in
nature. It is located about 3 miles from Santa
Maria's civic center. The property is trapezoidal
and its contours are generally level. The seller in
the transaction was Dena Adam and Ronald
Myers and the buyer was Pacific West
Communities, Inc. The date of recordation is
May 7, 2021. This date is used as the sale date.

The property sold for $927,000. This equates to
$11,000 per allowable dwelling unit or $17.37
per gross square foot. This comparable was
confirmed through buyer representative David
Basel of The Pacific Companies, on October 28,
2022. by Jeremy Bagott, MAI, AI-GRS. The site required a demolition of a long -vacant restaurant building.

Offsites include curbs, gutters and sidewalks.

The parcel sold with a teardown building. Construction began after sale of the Santa Maria Studios, a 2- story,160-unit complex. Phase 1, which will contain 160 units, is set to be completed in 2023, according to the buyer representative. Phase 2 will include 218 units. The buyer requested and is being recommended for $2.7 million in annual federal tax credits to finance the new senior housing. City documents associated the project with APN 128-090-011. Also, APN 128-090-013 appears to be a legacy parcel. The project was submitted under California's Senate Bill 35, which allows the city's requirements, such as review from the Planning Commission, approval from the city council, and public comment, to be bypassed. The buyer, according to buyer representative Mr. Basel, also bought 2660 Santa Maria Way from what was believed to be an overlapping entity the same day. The latter parcel sold at $3,233,152, according to Basel. The combined site was 5.52 acres. Phase 2 may not happen, according to Basel. Phase 1 is 2.28 acres. The deal would pencil at $10,000 per door. The combined parcels were purchased for approximately $11,000 per allowable unit or $17.30 per square foot.

This comparable is superior in size on a per -square -foot basis. It is inferior in market conditions and inferior in location. This comparable is inferior in shape and in zoning. It is inferior in site condition due to demolition requirements. All factors considered, the across -the -fence parcel's unit value will be above this indicator.

Hamner, Jewell & Associates Government Real Estate Services 49

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

LAND VALUE CONCLUSION
Based on the previous discussion, the sale comparables indicate the subject bracketed value range is from $17.46 to $23.15 per square foot. See the array below:

Sale No.

Subject Value
Less Than/
Greater Than
Sale Price Per Square Foot
LS -1
< $23.15
Subject bracketed value range is from $17.46 to $23.15 per square foot LS -2
LS -4
LS -3
517.46
$17.37
$7.41
The outlier in the array above, Land Sale 3, which sold for $7.41 per square foot ($19,048 per allowable door), should first be discussed. The buyer believes the market value of this property would have exceeded $3.9 million — its asking price — had it been already entitled for multifamily. He said the low price corresponded to outsized risk he believes he was taking. The asking price equates to about $31,000 per allowable unit or about $12.00 per square foot. The buyer believes the market value would have exceeded $4 million had it been already entitled for multifamily. He believes $65,000 to $70,000 per allowable unit would have been justified. This equates to about $25.00 to $27.00 per square foot. His comment was highly speculative but it does suggest that were the entitlements in place (or the circumstances allowing for one or another form of state -sanctioned bypass of entitlements).

Land sales 2 and 3, which sold for approximately $17.50 per square foot, were found to be inferior to the selected across -the -fence parcel after adjustment. Land Sale 1, which required the least gross and net adjustment, was most similar to the subject. We conclude a preliminary value at $22.00 per square foot.

The appraiser's qualitative adjustment analysis is provided in the Addendum of this report.

To value the subject parcel, we must consider the concept of a corridor factor applied to the base land value determined above. To arrive at a corridor value, the appraiser must multiply the ATF value by the corridor factor. This factor is a consideration that is unique to the valuation of corridors. The factor is calculated from comparable sales by dividing the sale price of the corridor by its ATF value. The factor reflects the inherent physical and economic characteristics — positive or negative — that are unique to the corridor and the fact that value can be created or diminished when two or more parcels are assembled into a corridor.

In order to conclude an appropriate corridor factor for the subject property, we have considered the sales of assembled corridors in California. The three below represent corridors with limited anticipated use at the time of sale, resulting in corridor factors well below 0.50. They are as follows:

Hamner, Jewell & Associates Government Real Estate Services 50

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
#
1 Location
TAMC
Railroad
Corridor
from
Castroville
to Sand
City.

Sale
Date
2003
Sale Price
ATF Value
Acre Size
SF Size
Length
(Miles)
Width
(LF)
$/Acre
$/Linear
Miles
$/SF
ATF
Ratio
(Corridor
Factor)
Comments
$8,600,000
$35,000,000
N/A
N/A

12.6 miles
N/A
$682,540
N/A

0.25 UP to Monterey
County
Transportation
Authority. The
corridor had limited
use at the time of
purchase, with no
immediate
transportation plans
for the corridor.
50% rural/open
space and 50% sub-
urban.

Anaheim
Branch
Line;
UP to City of
Pioneer
53,660,200

34.34 Ac
4,696
5106,587/acre
Whittier for
2 Blvd. to
2002
miles
$779,387/mile

0.23 proposed Whittier
Colima
Junction,
City of
515,655,000
1,495,850 sf
64' (Ave.)
$2.45/SF.

Greenway trail
project 100%
suburban
Whittier
Sale by SP to
Regional Joint
Rail

54.85 Powers Authority
for future light rail &
other uses. Seller
corridor,
513,235,000
604.9 Ac
miles
$21,880/acre
reserved right for
3 Rancho
1996
$241,294/mile

0.32 freight, fiber-optic
Cordova to
Placerville
540,899,000
26,349,444 sf
Circuitous
route
$0.50/SF.
line & right to
receive annual
payments on a
perpetual pipeline
easement. 10%
suburban/90% rural
Source: Bender Rosenthal
As shown in the table above, the median corridor factor is about 0.25. In determining the appropriate corridor factor to apply to the parcel segment, we have considered that the subject property is part of what was once a railroad branch line. It has long since been abandoned as a rail corridor.

Because the location of the subject segment is in an area in which short rail is no longer a principal mode of transport for goods, the replacement of the rail corridor would not likely be undertaken. These factors lead to a conclusion of a factor near the median of the range. Based upon analysis of this data, we apply a 0.25 factor to the base land value previously arrived at for the subject corridor.

Hamner, Jewell & Associates Government Real Estate Services 51

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
Corridor
ATF Value / SF Factor Final Value / SF
$22.00 0.25 $5.50

VALUE OF THE CORRIDOR SEGMENT PER SQUARE FOOT (LAND)
= $ 5.50
The per -square -foot value of the subject corridor segment will be applied to conclude a value for the acquisition.

VALUE OF THE PROPOSED ACQUISITION
The value of the proposed land and improvements is the contribution of the acquisition components as they relate to the value of the corridor segment.

Land Acquisition:

Fee Acquisition
74,923 SF X $5.50/SF
412,076
Total Value of the Proposed Acquisition: The total value of the proposed acquisition is presented below:

FAIR MARKET VALUE (AS OF OCTOBER 19, 2022)
Market Value of Proposed Acquisitions
Land $ 412,076
Rounded $ 412,000
This concludes the report.

Hamner, Jewell & Associates Government Real Estate Services 52

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046

APPRAISER CERTIFICATIONS
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 the three-year period immediately preceding acceptance of this assignment.
• I have no bias with respect to the 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. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • I have made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification.
• The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute.

Hamner, Jewell & Associates Government Real Estate Services 53

Valuation for Full -Fee Acquisition
Jones Street Corridor Segment
APN: 125-200-046
•
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute.
i 1/./&,- _L--1/''.•:•: ,-4--------
/J remy Bagot�, MAI, Al-
alifornia Certified General Appraiser
License No. AG031250
Hamner, Jewell & Associates Government Real Estate Services 54

ADDENDUM

DocuSgn Erveiooe ID 9A9FE291O2E4-480C-89'R-F 3RR4A47FF':.

The Towbes Group
May 5. 2021
Mr. Alex Posada
Director of Recreation and Parks
Crty of Santa Maria
615 South McClelland Street
Santa Maria. California 93454
Re Willing Seller Letter Updated
Jones Street Strip (APN 125-200-46)
Dear Mr Posada
1 am writing to update you regarding the purchase of APN 125-200-46. commonly known as the Jones Street Strip, between College Dnve and Bradley Road, by the City of Santa Maria Pursuant to your request, please accept this letter as evidence of the owner's (HT Partners. LP) Interest in pursuing the sale of the Jones Street Strip to the City We were disappointed, as I'm sure you were. that Cycle 5 of the CafTrans Active Transportation grant program did not include funds for this acquisition by the City According to the City's most recent resolution setting the 2018-19 Values for Land Zoned as Open Space of Public Facilites the land value is $132.667 per acre The subject parcel is 1 72 acres. For your convenience. 1 am enclosing a property profile. an assessor's parcel map and a surveyor's map with the legal description.

Using the City s current land values. the fair value of the Jones Street Strip is $228.187 24 and HT Partners is prepared to move forward with the sale at that price. To the extent the City updates its values for open space pnor to the date we enter into a written agreement for the sale of the Jones Street Strip. we reserve the nght to update our asking price to reflect such changes We reiterate the Willing Seller Letter and request that you continue to pursue funding through available City. State, and applicable programs to complete this protect On behalf of HT Partners. we look forward to reaching an agreement with you to purchase the parcel for the benefit of the City's citizens for a future multipurpose pedestnan and bike trail and enhanced connectivity to the east of US 101
Please do not hesitate to contact me for additional information regarding this proposal Sincerely.

Kein..1 ` S%iwu r
0108 EllfE°F%RINNER
Chef Executive Officer
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About Appraiser Jeremy Bagott, MAI, AI-GRS
Jeremy Bagott has appraised properties for public agencies for the purposes of eminent domain, CFD bond issuance, successor - agency disposition, and lending. A former editor at the Los Angeles Daily News, he holds a bachelor's degree from California State University, Northridge, in foreign language and is a former Marine. He has written extensively on land -use issues and has been published in the Wall Street Journal, Voices of the Governing Institute, the National Review, the Los Angeles Daily News, the Orange County Register, the Los Angeles Business Journal, the San Diego Business Journal, the Riverside Press -Enterprise and the Ventura County Star. He provides commercial appraisal services for many property types and has experience in appraising improved owner -user and income -producing properties, as well as speculative land, land slated for immediate development, agricultural land and residential estate properties. In the area of eminent domain, he has appraised properties for full fee, partial fee, permanent easement and temporary easement acquisitions.

REPRESENTATIVE VALUATIONS INCLUDE
Industrial — DCOR-Rincon Onshore Separation Facility, Mussel Shoals; Tejon Industrial Complex, Kern County; Carlsbad Oaks North Business Park, Carlsbad; Centerpointe Business Park, Moreno Valley; high -cube logistics buildings, Chino.

Office —Assorted multitenant professional and medical office properties in Oxnard, Ventura, Los Angeles and South Orange County.

Retail — Shopping centers, free-standing retail buildings and properties on pads in Kern, Los Angeles, Riverside, San Bernardino and Ventura counties.

Multifamily Residential — Apartment complexes and small -investor properties across Southern California and the Central Coast.

Residential — Valuation properties for the cities of Carson, Lynwood and Palmdale as part of neighborhood stabilization programs; valuation of properties acquired for fire station expansion, Fullerton; valuation of estate properties in Santa Barbara County.

Agricultural — Orchards, row -crop and grazing land in Ventura, Santa Barbara, San Luis Obispo, Kern, Kings, Fresno, Madera, Riverside, Tulare and Tuolumne counties.

Special -Use Properties — Elementary School, Bassett Unified School District, Baldwin Park; City Hall, Maywood; Community Center, Boyle Heights (Los Angeles); Elementary School Site, Oxnard School District, Oxnard; Charter School, Los Angeles Unified School District.

Right-of-way Projects — Riverside, Los Angeles, Kern, Tulare, Kings, Madera, Tuolumne, Ventura, Santa Barbara and San Luis Obispo counties; Riverside Transmission Reliability Project 69kV Transmission Line Project, Riverside; Downs, Inyokern, Searles and McGen Substation Expansion Project, SCE, Kern County; State Route 91 Corridor Improvement Project, Corona.

LICENSES, DESIGNATIONS, PROFESSIONAL ASSOCIATIONS AND MEMBERSHIPS Certified General Real Estate Appraiser, State of California (CA AG031250) Appraisal Institute (MAI, #496093), Current Member of the Southern California Chapter Member, Committee on Assessments, Special Taxes and Other Financing Facilities Member, IRWA, Chapter 47
BOOKS
"The Compact Real Estate Appraiser," ISBN 978-0999710715, Publication Date: December 15, 2017 "Guaconomics: Dipping a Chip into America's Besieged Party Bowl," ISBN 978-0999710722, Publication Date: July 6, 2018

tor"r,.aw .A l..... v..Y.,

FIRM QUALIFICATIONS
HAMNER, JEWELL & ASSOCIATES is a specialized real estate consulting firm that provides right of way and governmental real estate acquisition, appraisal, and relocation services. For over 40 years, Hamner, Jewell and Associates has provided these services to public agencies throughout California. With offices in Ventura, San Luis Obispo County, and Fresno, we are able to service public agencies especially effectively throughout the Central Coast and Central Valley regions and have managed right of way acquisition projects spanning from the City of Poway in San Diego county, through the Los Angeles Basin, Santa Clarita, and up to the Sacramento Delta and the Silicon Valley.

Clients. Our extensive client list includes municipalities, counties, school districts, special districts, redevelopment agencies, water and sanitary districts, flood control districts, nonprofit housing organizations, private developers, public utilities, and engineering firms, and has included the California High Speed Rail Authority.

Services. Our primary specialization is acquiring real property rights, including easements and other partial interests, and providing mandated relocation assistance to property occupants on behalf of entities with the authority to acquire property by eminent domain. Our services are designed with the specific intent of successfully acquiring property by agreement, minimizing the instances in which eminent domain action would otherwise be required, but preserving the acquiring agency's right to initiate such action should it become a viable necessity.

We have acquired temporary and permanent easements or fee interests for roadways, sewer lines, waterlines, well sites, tank sites, utilities, greenbelts, and construction areas. We have also acquired access rights, air rights, slope easements, drainage easements, and properties for redevelopment projects and capital improvement projects such as parks, public parking lots, and sewer expansion projects. We have relocated residences and businesses that have ranged from office, retail, and industrial, including restaurants and bars, to automotive businesses, and even a tattoo parlor.

Additionally, our services include appraisals and project planning budgetary analysis, acquisition and relocation planning, including drafting acquisition and relocation guidelines, relocation plans, and replacement housing plans. We also provide preliminary relocation surveys and cost estimates, market surveys, resource analysis, title analysis, representation in lease negotiations, interim property management, utility relocation coordination, construction noticing, dispute resolution, and other general real property consulting services.

Federal Funding: Uniform Act Compliance. We are experienced and knowledgeable with all federal funding requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act ("Uniform Act") and we have an excellent working relationship with our local federal oversight representatives from Caltrans and HUD. To facilitate federally funded public works projects, we work extensively with Caltrans District representatives to facilitate projects in compliance with Caltrans and federal funding requirements. In addition to FHWA/Caltrans-funded projects, we have also handled property acquisition funded by other federal agencies, such as acquiring transportation center sites utilizing Federal Transit Administration (FTA) funding, and avigation easements utilizing Federal Aviation Administration (FAA) funding.

Professional Accolades HAMNER, JEWELL & ASSOCIATES has been repeatedly recognized as "Employer of the Year" by California Central Coast Chapter 47 of the International Right of Way Association in recognition of outstanding professionalism, support, and active involvement in the right of way acquisition field, and Managing Senior Associate Lillian Jewell has twice been named Chapter 47's Professional of the Year. Additionally, HJA Associates David Jewell and Cathy Springford have also been honored with Professional of the Year acknowledgements, David in 2003 and Cathy in 2010.

Corporate and Son Luis Obispo County Office 530 Paulding Circle, Suite A, Arroyo Grande, CA 93420 Ventura County Office 260 Maple Court, Suite 277, Ventura, CA 93003 Central Valley Office 264 W. Follbrook Ave., Suite 101, Fresno, CA 93711 www.homner-iewell.com
(805) 773-1459
(805) 658-8844
(559) 412-8710