KIDDER.COM
APPRAISAL REPORT
SOUTHERN CALIFORNIA GAS COMPANY PROJECT -
W Battles & S Depot, City of Santa Maria, California
Date of Value: January 15, 2025
Date of Report: January 22, 2025
Prepared for
Southern California Gas Company
Mike Sarad
Senior Land Advisor - Contractor
Prepared by
Matthew VanEck, MAI
KM Job AC24-471
Kidder Mathews
Valuation Advisory Services
5 Park Plaza, #1700
Irvine, CA 92614
949.557.5000
[email protected]
kidder.com
Attachment D
Valuation Advisory Services
5 Park Plaza, #1700 T 949.557.5000
50 YEARS. THE EDGE IN YOUR MARKET. Irvine, CA 92614 kidder.com
January 22, 2025
Mike Sarad
Senior Land Advisor - Contractor
Southern California Gas Company
8101 Rosemead Blvd., SC722K
Pico Rivera, CA 90660-5100
RE: Appraisal of two non-exclusive easements for encroachment purposes over a portion of City of Santa Maria owned land located at and near the intersection of W Battles Road and S Depot Street in Santa Maria, CA (Kidder Mathews File Number AC24-471).
Mr. Sarad:
In accordance with your request, Kidder Mathews Valuation Advisory Services has prepared a valuation analysis of the property referenced above (“Subject Property”). The purpose of the report is to estimate the compensation due for the proposed acquisitions of portions of the Subject Property. Value conclusions and other information are set forth on page 2 of the attached report, while hypothetical conditions, extraordinary assumptions, definition of market value, and other valuation are included in the Identification of Assignment section of the report starting on page 5.
The attached report has been prepared in accordance with the Uniform Standards of Professional Appraisal Practice (“USPAP”) and the appraisal guidelines of the Southern California Gas Company. In addition, the report is in compliance with California State law applicable to acquisitions under threat of eminent domain.
The conclusions of value expressed herein are subject to the assumptions and limiting conditions set forth in the body of the accompanying report.
Respectfully Submitted,
KIDDER MATHEWS
Matthew VanEck, MAI
Senior Vice President
Certified General Real Estate Appraiser
California License No. AG 042827
Expiration Date 7/17/2025
949.557.5047
[email protected]
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Certification
I certify that, to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions of the signer are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
3. The signer of this report 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.
4. Matthew VanEck, MAI has not performed appraisal services regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
5. The signer is not biased with respect to the property that is the subject of this report or to the parties involved with this assignment.
6. The engagement in this assignment was not contingent upon developing or reporting predetermined results.
7. The 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.
8. The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice , as set forth by the Appraisal Standards Board of the Appraisal Foundation.
9. Matthew VanEck, MAI inspected the property that is the subject of the report.
10. No one provided significant real property appraisal assistance to the appraisers signing the certification.
11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
12. As of the date of this report, Matthew VanEck, MAI has completed the continuing education program for Designated Members of the Appraisal Institute.
Matthew VanEck, MAI
Certified General Real Estate Appraiser
California License No. AG 042827
Expiration Date 7/17/2025
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Limiting Conditions
1. Information presented in this report has been obtained from reliable sources, and it is assumed that the information is accurate.
2. This analysis assumes that the information provided for this appraisal accurately reflect the current condition of the subject property.
3. This report shall be used for its intended purpose only, and by the party to whom it is addressed. Possession of this report does not include the right of publication.
4. The appraiser may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made.
5. The statements of value and all conclusions shall apply as of the dates shown herein.
6. There is no present or contemplated future interest in the property by the appraiser which is not specifically disclosed in this report.
7. Without the written consent or approval of the author neither all, nor any part of, the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media. This applies particularly to value conclusions and to the identity of the appraiser and the company with which the appraiser is connected.
8. This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the author no portion of the report stands alone.
9. I assume no responsibility for matters legal in character, nor do i render any opinion as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, under responsible ownership, and competent management.
10. The appraisal has provided exhibits to assist the client(s)/intended user(s) to understand from a graphical standpoint some o f the salient issues which impact the subject property. We have made no survey of the property and if further verification is requi red, a survey by a registered surveyor is advised.
11. The appraiser assumes no responsibility for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise noted herein. This analysis assumes that no asbestos or other hazardous materials are stored or found in or on the subject property. If evidence of hazardous materials of any kind occurs, the reader should se ek qualified professional assistance. If hazardous materials are discovered and if future market conditions indicate an impact on v alue and increased perceived risk, a revision of the concluded values may be necessary.
12. If applicable, the valuation stated herein assumes professional management and operation of the buildings throughout the lifetime of the improvements, with an adequate maintenance and repair program.
13. The liability of Kidder Mathews, its principals, agents, and employees is limited to the client. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraiser is in no way responsible for any costs incurred to discover or correct any deficiency in the property.
14. The appraiser is not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated with the property or any adjacent properties, has made no investigation or analysis as to the presence of such materials, and expressly disclaims any duty to note the degree of fault. Kidder Mathews and its principals, agents, employees, shall not be liable for any costs, expenses, assessments, or penalties, or diminution in value, property damage, or personal injury (including death) resulting from or ot herwise attributable to toxic or hazardous sub stances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, solids or gasses, waste materials or other irrit ants, contaminants or pollutants.
15. The appraiser assumes no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA).
Kidder Mathews, its principals, agents, and employees, shall not be liable for any costs, expenses, assessments, penalties or diminution in value resulting from non-compliance.
16. This appraisal assumes that the subject meets an acceptable level of compliance with ADA standards; if the subject is not in compliance, the eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the magnitude and time of the cost were known today, they would be reduced from the reported value conclusion.
17. Unless otherwise noted herein, a detailed soils study was not provided for this analysis. The subject's soils and sub- soil conditions are assumed to be suitable based upon a visual inspection of the subject property and surrounding properties, which did not indicate evidence of excessive settling or unstable soils. No certification is made regarding the stability or suitability of the soil or sub-soil conditions.
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Table of Contents
Letter of Transmittal ........................................................................................................................................................................................................ i Certification ........................................................................................................................................................................................................................ ii Limiting Conditions ....................................................................................................................................................................................................... iii Executive Summary ........................................................................................................................................................................................................ 2 Subject Property Photographs ............................................................................................................................................................................. 4 Regional Area Analysis ............................................................................................................................................................................................... 12 Local Area Analysis ....................................................................................................................................................................................................... 16 Property Description – Larger Parcel .................................................................................................................................................................... 20 Taxes & Assessment .................................................................................................................................................................................................... 25 Land Use Restrictions .................................................................................................................................................................................................. 26 Project Description ....................................................................................................................................................................................................... 27 Highest and Best Use Analysis ................................................................................................................................................................................ 33 As Vacant Analysis ................................................................................................................................................................................................... 33 Before Analysis ............................................................................................................................................................................................................... 36 After Analysis .................................................................................................................................................................................................................. 43 Addenda ........................................................................................................................................................................................................................... 49 Acquisition Documents
Preliminary Title Report
Comparable Sale Summaries
Qualifications of Appraiser
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Executive Summary
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VALUATION SUMMARY
VALUE OPINIONS VALUE OF PROPERTY
RIGHTS
CLIENT NOMINAL
VALUE THRESHOLD CONCLUSION
Encroachment Easements $2,108 $1,000 $2, 108
Severance Damages $0 $0 $0
Project Benefits $0 $0 $0
TOTAL FAIR MARKET VALUE OF PROPOSED PROPERTY
RIGHTS AQUIRED (ROUNDED) $2,110 $1,000 $2 ,110
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View looking west over APN: 117-250-029 from
NWC of W Battles Rd & Depot St
View looking east over APN: 117-250-029
View looking north over APN: 117-250-029
View looking over APN: 117-250-029
View south over APN: 117-250-029
View looking north at APN: 117-250-029 from W
Battles Rd
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View looking east at Minami Community Park
View looking over the portion of APN: 117-250-
029 south of Battles Rd
View looking over the portion of APN: 117-250-
029 east of Depot St
View looking north over Minami Community Park
View of Minami Community Park recreational area
View looking north at APN: 117-250-019
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Identification of Assignment
PROPERTY IDENTIFICATION
The Subject Property consists of 34.16 acres of land located at and near the intersection of W Battles Road and S Depot Street in the city of Santa Maria, CA. The land includes portions of the public right of way, a vacant site partially used by the Southern California Gas Company and the Minami Community Park, all owned by the city.
The property can also be identified by Santa Barbara County Assessor Parcel Numbers (APN): 117-250-029, 117-250-028, 117-250-019. The legal description of the APN impacted by the taking is presented in the title report located in the Addenda of this report. The legal description for the entire Subject Property was not provided.
PROJECT SUMMARY
The Project that necessitates the acquisition of a portion of the Subject Property is for the development of electrical and pipeline maintenance facilities that will be used to support and protect existing Southern California Gas Company pipeline improvements that runs through a portion of the Subject Property. The project is required so that Southern California Gas Company can continue to provide service to customers throughout the region.
SCOPE OF WORK
The scope of work for this appraisal assignment is outlined below:
• The Larger Parcel was inspected on January 15, 2025.
• Regional and local economic profiles including employment, population, and other trends were analyzed.
• The appraiser confirmed and analyzed legal and physical features of the subject, and how they impact the functionality and overall competitive position of the property • The appraiser reviewed the proposed easements for the Project provided by The Southern California Gas Company and analyzed how they impact the functionality and overall competitive position of the property in the after condition.
• The appraiser conducted a Highest and Best Use analysis and conclusions were drawn for the highest and best use of the Subject Property As-Vacant.
• Selection of the valuation methods was based on USPAP requirements relating to the intended use, intended users, definition and date of value, relevant property characteristics and assignment conditions. This appraisal developed the Sales Comparison approach to value. • I researched comparable sales, escrows and listings of similar zoned parcels over the past decade both locally and throughout the State of California. Sources used included CoStar, LandVision and MLS. • Reporting of this appraisal is in an Appraisal Report format as required in USPAP Standard 2. The appraiser’s analysis and conclusions are fully described within this document. • I understand the Competency Rule of USPAP and meet the standards. • No one provided real property appraisal assistance to the individuals signing this report.
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SOURCES OF INFORMATION
The following sources were contacted to obtain relevant information:
SUBJECT PROPERTY INSPECTION
CLIENT IDENTIFICATION
The Client for this assignment is the Southern California Gas Company.
PURPOSE
The purpose of the appraisals is to form an opinion of the fair market value of the easement interests to be acquired for the construction, maintenance, and replacement of (1) electrical facilities and associated equipment and (2) a fenced pipeline maintenance facility (“Project”) by Southern California Gas Company.
INTENDED USE & INTENDED USERS
The intended use of this report is to aid in establishing basis of value for purposes of negotiations to acquire easements over portions of the Subject Property (also referred to as the Larger Parcel). The Southern California Gas Company and the City of Santa Maria are the intended users of this report. Additional users may include a trier of fact.
ASSIGNMENT DATES
Date of Report: January 22, 2025
Date of Last Inspection: January 15, 2025
Valuation Date: January 15, 2025
PERSONAL PROPERTY & BUSINESS INTANGIBLE
No personal property items were observed that would have any material contribution to market value.
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PROPERTY OWNERSHIP AND SALES HISTORY
Current Owner
The subject property is currently under the ownership of The City of Santa Maria, a Municipal Corporation, according to the Santa Barbara County records.
Sales History
According to county records there has been no transfer of ownership for the Subject Property in the past 10 years and there is no known pending sale or listing of the Subject.
DEFINITIONS
Given the scope and intended use of this assignment, the following definitions are applicable.
Fair Market Value
"Fair Market Value" is defined pursuant to Part 3, Title 7, Chapter 9, Article 4 of the California Code of Civil Procedure as follows:
(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. 1 Market Rent
There is not a specific State definition for Fair Market Rent or Market Rent. Therefore, we will rely on the definition of Market Rent from the “Dictionary or Real Estate Appraisal” 2 which is reproduced below:
“Market Rent - The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs).” 3 The State definition of Market Value is unique in that it specifies that market value is the highest price. The definition of Market Rent above uses the term most probable rent. In order to be consistent with the required definition of market value, we wil l modify the definition of Market Rent to reflect the highest rent instead of the most probable rent.
Nominal Value Threshold
The Nominal Value Threshold, as defined by the Southern California Gas Company, shall be shown in the valuation report as the following:
1 The definition of Fair Market Value is from Part 3, Title 7, Chapter 9 of the California Code of Civil Procedure, entitled: Eminent Domain Law, Article 4, Measure of Compensation for Property Taken, 1263.320 2 Dictionary or Real Estate Appraisal, the Appraisal Institute, 6th Edition, 2015, Chicago, IL 3 The Dictionary of Real Estate Appraisal, 6th Edition, 2015, the Appraisal Institute, Chicago, IL. Also, USPAP, 2016-2017 edition.
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EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions4.
We must take into consideration California law on this subject as set forth below:
• Section 1263.330 of the California Code of Civil Procedure requires the appraiser to not consider any effect on value of the project, the eminent domain proceeding, or any preliminary actions of the acquiring agency. We have investigated the real estate market for any influence that the issues addressed by California law may have had in the market data selected and analyzed and could not find any that could be measured as an impact on value. Therefore, we have prepared the appraisal analysis of the Subject Property in the before condition under the extraordinary assumption that these activities have no effect on the value conclusions stated in this appraisal report. • Based on the provided preliminary title report (Commonwealth Land Title Insurance Company - File #932401761 - dated August 6, 2024) for APN 117- 250-029, there is only one easement recorded in favor of the Pacific Gas and Electric Company that was listed as exceptions to title. The easement was not plotted, however there is a high-voltage powerline and poles that run along the western boundary of the parcel. We are also aware that a portion of public right-of-ways known as W Battles Road and S Depot Street run through the property. Further, we noticed on the inspection several other improvements (hole covers, fencing, ventilation and monitoring equipment) and signs related to Southern California Gas Company subsurface pipelines are located throughout the parcel . Based on an on-site inspection of the property, it was not apparent that any easements existing in the area of the taking. It is an extraordinary assumption of this report that the area of the taking excludes any pre- existing or overlapping easement areas.
HYPOTHETICAL CONDITIONS
A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis
5. In this appraisal, hypothetical conditions are used for estimating market value as follows:
• For the valuation of the Subject Property before the taking, we assume that there is no proposed taking by The Southern California Gas Company. This also assumes that the market recognizes that there is no threat of condemnation in the reasonably near term future. • For the valuation of the remainder property in the after condition, the appraisal analysis has been prepared using the hypothetical condition that the public project has been completed per the descriptions, plans and specifications presented in this appraisal report.
4 The Dictionary of Real Estate Appraisal, 6th Edition, 2015, the Appraisal Institute, Chicago, IL. 5 The Dictionary of Real Estate Appraisal, 6th Edition, 2015, the Appraisal Institute, Chicago, IL. Also USPAP, 2020-2021 edition.
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PROPERTY RIGHTS APPRAISED
The property rights appraised for the larger parcel, the contributory values of the parts acquired and the remainder parcel, and the fair market value of the remainder parcel constitute the fee simple interest.
Fee Simple Interest
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.6
VALUE SCENARIOS
As-Is Fair Market Value
The estimate of the fair market value of real property in its current physical condition, use, and zoning as of the appraisal date.
EXPOSURE & MARKETING TIME
Exposure Time is not a component of the definition of market value that is used in this analysis, therefore no analysis of exposure time is required.
6 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022
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Regional Area Analysis
INTRODUCTION
In order to understand the subject’s position in the area or region, we have undertaken a brief analysis in order to determine how trends—both historical and projected —in population, economic performance, employment, and transportation linkages impact supply and demand and influence the subject’s area directly and indirectly. This analysis first begins on a broader spectrum, and without respect to the subject itself, and is highlighted in the Regional Area Analysis. Secondly, we undertake a more narrowly fo cused study of the aforementioned attributes as they relate directly to the subject and the Subject’s neighborhood. This discussion is presented in the forthcoming Local Area Analysis.
REGIONAL AREA ANALYSIS
The Subject Property is located in Santa Maria, California. The map presented on the previous page illustrates the property’s location relative to the Santa Maria-Santa Barbara, CA MSA metropolitan area. The MSA is comprised of Santa Barbara County and is bordered by San Luis Obispo County to the north, Kern County to the northeast, Ventura County to the east, and the Pacific Ocean to the south and west. Santa Barbara County is approximately 100 miles northwest of Los Angeles and 250 miles south of San Francisco. Eight incorporated cities are located within the county, including Buellton, Carpinteria, Goleta, Guadalupe, Lompoc, Santa Barbara, Santa Maria and Solvang.
The county's economy is based on the engineering, resource extraction, agriculture, and education sectors.
Santa Barbara County is a prominent vinicultural region. The software development and tourism industries are large employers in the southern portion of the county. The mild climate, coastline, mountains, and numerous parks and beaches make the county a popular tourism and recreation area.
Population
According to the California Department of Finance
7, for the first time since 2020, California has once again experienced positive population growth in 2023: driven by decreased mortality and a rebound in legal foreign immigration. California’s population in 2023 grew by just over 67,000 (an annual rate of 0.17 percent) to 39,128,162. The population increased in 31 counties, largely in the Bay Area, Central Valley, and the Inland Empire. Los Angeles County and Orange County grew by 0.05% and 0.31% in population, respectively.
As for Santa Barbara County, the total population as of January 2024 was 443,623, which represents a 0.3% increase from the prior year. Population levels have fluctuated over the past few years but is down 1.03% since April 2020. Santa Maria is the largest city by population in the co unty with a population of 110,608. It also experienced the largest year over year population gain of 0.8% in 2024. The City of Santa Barbara is the county seat and its population levels were lower at 85,679 due to the constraints on useable land and higher living costs. Lompoc is the third largest city with a population of 43,610.
Economy
8 The metro is highly educated, with roughly one-third of residents having a bachelor's degree or higher and a median household income of $94,000. According to the latest report from the US Census Bureau, Santa Barbara County's population shrank by nearly 3,000 people between mid -2022 and mid -2023. Residents
7 https://dof.ca.gov/wp-content/uploads/sites/352/Forecasting/Demographics/Documents/E-1_2024_Press_Release.pdf 8 CoStar Office Market Report – Santa Barbara (January 2024)
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across the Central Coast and Southern California have experienced similar population losses in recent years as residents seek out more affordable living options in the interior of California or out of the state.
Agriculture, tourism and wine are among the leading industries here, and they employ upwards of 15% of the local workforce. The healthcare industry employs just under 10%.
Vandenberg has become home to the U.S. Space Force and could be a catalyst for establishing a commercial space industry on the Central Coast. A master plan lays out a vision that would cement a local commercial ecosystem tied to the space industry.
UC Santa Barbara is the most prominent university in the county, and enrollment exceeds 25,000. Those graduates provide a pipeline of potential workers for local employers.
Employment
The following chart shows the trailing 10 years employment for the state of California, Santa Maria-Santa Barbara, CA MSA, and Santa Barbara County. Since the MSA and county are the same, the numbers are the same. Overall, the area’s employment swings have mostly mirrored the state’s, but to a lesser extent.
Additional employment information is summarized in the table on the top of the following page which shows the top employers in Santa Barbara County
9. Principal employers in the region are spread throughout diverse sectors, including government, education, public administration and healthcare industries.
Vandenberg Space Force Base is now the county’s top employer, creating approximately 16,000 jobs. The County’s previous top employer, t he University of California - Santa Barbara (UCSB) has an endowment of $585.5 million and a workforce of approximately 10,973 among academic and administrative personnel. The County of Santa Barbara is the third largest employer, providing a full range of services to its residents. Cottage Health Organization, the fourth largest employer, is a private, not-for-profit healthcare provider with 5 facilities in the county and a total of 578 licensed beds. Local school districts, colleges, medical centers, municipalities and a casino round out the top 10.
9 Santa Barbara County Annual Comprehensive Financial Report – Fiscal Year 2022-2023
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Transportation
The major highways which provide vehicular access to and throughout the region primarily include US Highway 101 and State Route 1. US Highway 101 travels westerly from Los Angeles and through the cities of Santa Barbara, Goleta and others before turning north in Gaviota. SR 1 splits off of US Highway 101 just past Gaviota in Las Cruces. Both then run northwesterly through the county and then link back up north of the county in Pismo Beach.
Santa Barbara County is served by Amtrak trains and Greyhound buses. The southern portion of the county is served by the Santa Barbara Metropolitan Transit District. In the North County, the cities of Lompoc, Santa Maria, and Buellton/Solvang have their ow n bus services. Commercial flights are available at Santa Barbara Airport near Goleta and Santa Maria Public Airport which is located just southwest of Downtown Santa Maria.
Lompoc also has an airport located on the north end of the city.
Conclusion
The region is well positioned to maintain economic stability with its well -diversified employment base and tourism appeal. The positive features of the Santa Maria -Santa Barbara, CA MSA are considered sufficient to maintain the region as a desirable commercial and economic center and serve as a means of fostering economic growth. However, with recent uncertainties surrounding economic headwinds, inflationary pressures and recession concerns, the demand for real estate property in Central Santa Barbara Count y will continue to be affected going forward.
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Local Area Analysis
INTRODUCTION
The Subject Property is located in City of Santa Maria, in northern Santa Barbara County. The following description will focus on the immediate neighborhood and its influence on the Subject Property.
Santa Maria Description
Santa Maria, located in California's Central Coast region, has experienced significant growth and development in recent years. As of January 1, 2024, the city's population was estimated at 110,608, reflecting a steady increase from 109,707 in 2020. Santa Maria is the most populous city in the county and the Santa Maria-Santa Barbara, CA Metro Area.
The city serves as a vital hub in the region for industry, commerce, agriculture, and retail. Agriculture remains central to the local economy, with surrounding areas producing strawberries, wine grapes, and vegetables.
Santa Maria also has a diverse econo mic base that includes aerospace, communications, high- tech research and development, energy production, military operations, manufacturing, and a longstanding petroleum industry. Oil production in the region has been significant since the discovery of the Orcutt Oil Field in 1902, with thousands of wells producing substantial revenue.
Retail is another major economic driver, anchored by two prominent shopping centers near the U.S. Route 101/Betteravia Road interchange: the Crossroads, completed in 1999, and the historic Enos Ranch site, completed in completed in 2022. Both feature prominent big-box stores, while the Santa Maria Town Center, located at the intersection of Broadway and Main Street, is the only enclosed shopping mall in Santa Barbara County and the largest on the Central Coast.
Historical landmarks also enrich the city, including the Santa Maria Inn on South Broadway. Built in 1917 by Frank McCoy, the inn is a registered historic landmark that has hosted notable figures such as Charlie Chaplin and Bette Davis.
There are also numerous projects proposed for the city, as shown in the map on the following page, including the Blosser Ranch development (noted at project #24 in the map on the following page, with the subject area noted by the red arrow), which is located immediately west of the Subject Property. The project was reported 10 to be approved in 2023 and when developed would include 338 “for rent” single family homes with 329 ADRs and 832 apartment units. Further to the south is a mixed use project known as Betteravia Plaza, which is set to include a mix of 443 apartment units and 291,278 SF retail and office uses.
The city also has numerous community facilities and recreational areas. Santa Maria Fairpark, located at Stowell Road and Thornberg Street just north of the Subject Property, is home to the annual Santa Barbara County Fair, which began in 1891. It is also home to the annual Strawberry Festival, in addition to a wide variety of other events, concerts, and conventions. The Paul Nelson Aquatic Center offers an Olympic- size competition pool, as well as a recreational pool. There is also an indoor basketball ball court, Santa Maria style BBQ sets and a baseball field at this site. Waller Park is a 154- acre park located at the south end of Santa Maria, featuring two large duck ponds with water fountains, several playgrounds, picnic and sports areas, a hiking trail, and a frisbee golf course. P reisker Park, located at the north end, is home to large open fields, a disc golf course, playgrounds and picnic areas.
10 https://www.ksby.com/news/local-news/in-your-community/santa-maria/blosser-ranch-development-receives-final-approval-from-santa-maria- planning-commission
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The Larger Parcel which makes up the Subject Property is located within one recreational areas, Minami Park/Adam Park. It is the City’s second -largest park, with ten acres of soccer fields, lighted tennis courts a Bocce Ball Court as well as BBQ pits, picnic areas, and benches for seating. Minami Community Center is located centrally within the park. The center features two multi -functional rooms, a large assembly and a studio room. Southwest of the park is the location of the proposed taking. This area is bounded by a railroad right-of-way and a public right-of-way, S Depot Street.
Much of the rest of the city is developed as a residential community. According to Redfin, the Santa Maria housing market is very competitive. The median sale price of a home in Santa Maria was $630K in December 2024, up 16.7% since last year. The median sale price per square foot in Santa Maria is $376, down 3.0% since last year.
Vandenburg Space Force Base
Vandenberg Space Force Base (VSFB), formerly the Vandenberg Air Force Base, is located south of Santa Maria but is the city’s largest employer. The base is used for space launches and missile testing. Its strategic West Coast location enables southward launches over the ocean, which is advantageous for certain satellite missions. The base supports a diverse range of activities, including national security, scientific research, and commercial satellite launches, serving the U.S. Space Force, NASA, and private companies. Known for its significant launches, Vandenberg has hosted missions for GPS satellites, Earth observation, and interplanetary exploration. Its infrastructure, including multiple launch complexes, is designed to accommodate various types of payl oads. Located in a relatively remote area, the base manages to balance its operations with environmental conservation efforts, making it a crucial asset in the U.S. space launch sector. A residential community within the base called Vandenberg Family Homes provides rental home styles to active duty Space Force families assigned to the base.
Demographics
The following information reflects the demographics for the subject’s area, with demographic information for a 1, 3 and 5 mile radius from the Subject Property, provided by ESRI, summarized in the table on the following page.
Population
The estimate provided by ESRI for the current 2024 population within the subject neighborhood’s 3 mile radius is 99,583 representing a nominal 0.02% change since 2020. ESRI’s 2020 population estimate for the subject’s 5 mile radius is 139,305, which represents a 0.32% change since 2020.
Looking forward, ESRI estimates that the population within the subject neighborhood’s 3 mile radius is forecasted to change to 99,077 by the year 2029. As for the broader area, ESRI forecasts that the population within the subject’s 5 mile radius will change to 138,659 over the next five years. The population estimates for the next five years within the subject’s 5 mile radius represents a negative (0.46%) change as well as a negative (0.47%) change within the subject’s 1 mile radius for the same period, suggesting a slowdown in growth for the area.
Households
The estimates provided by ESRI indicate that the number of households within the subject neighborhood’s 3 mile radius is 26,651, which is a 0.96% change since 2020. Within the subject’s broader 5 mile radius, ESRI estimates that the number of households is 39,289, a 0.78% change over the same period of time.
By the year 2029, the estimates provided by ESRI indicate that the number of households within the subject neighborhood’s 3 mile radius will change by 0.45% to 26,772 households. Additionally, ESRI’s estimate for
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total households over the next five years within the subject’s broader 5 mile radius indicates an expected change of 0.56% which will result in a total household estimate of 39,508.
Looking back, the number of households in the subject neighborhood’s 3 mile radius changed 8.58% during the ten-year period of 2010 to 2020. Since then it has changed by 0.96%.
Income
Income estimates provided by ESRI for the subject neighborhood’s 3 mile radius indicates that the median household income is $77,872 and that the average household income is $101,075. Further, the estimates provided by ESRI indicate that, for the subject’s broader 5 mile radius the median household income is $84,569, and the average household income is $110,592. Given that there are reportedly 39,289 households in the subject’s 5 mile radius, it is estimated that the local effective buying income is around $4,345,049,088.
LOCAL AREA CONCLUSION
Overall, the local economy is heavily influenced by Vandenberg Space Force Base, which is the largest employer in Santa Maria, providing jobs to more residents than any other organization. In addition to the base, the area supports agricultural industries. The local housing market offers relatively affordable living options compared to the coastal parts of the county, with new developments planned for areas near the Subject Property. Demand for community uses such as the Subject Property will remain for the foreseeable future to serve the local population.
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KIDDER MATHEWS Property Description – Larger Parcel
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Property Description – Larger Parcel
INTRODUCTION
In conducting our appraisal of the Subject Property, we have examined the issue of the “Larger Parcel” as it relates to the economic unit which is appropriate for analysis. Issues considered in this Larger Parcel analysis include:
1. Commonality of ownership;
2. Physical contiguity; and,
3. Common use and/or common highest and best use.
Regarding commonality of ownership, we note that the parcel impacted by the taking (APN: 117-250-029) has its recorded owner as: the City of Santa Maria, a municipal corporation. The parcel impacted by the taking and two surrounding parcels (APNs: 117- 250-019 and - 028) are a part of the Minami Park/Adam Park recreational area. The recorded owner of these two parcels is also the City of Santa Maria. These parcels are contiguous and being put to common use (recreational and city transportation infrastructure) as the impacted parcel. Therefore, the Larger Parcel consists of three parcels, which are described in further detail below. The terms Larger Parcel and Subject Property are used synonymously throughout the remainder of the report.
There are several structures and site improvements located throughout the Larger Parcel. The takings are located in areas of the Larger Parcel that are not developed. There are no site or building improvements impacted by the taking. As a result, the Larger Parcel will be limited to the land only.
Site Description
The Subject Property consists of three parcels with a total site area of 34.16 AC which is based on information obtained from Santa Barbara County Assessor. For the purposes of this report we have relied on the Assessor's site area. The site is described in further detail starting below.
Address The parcel impacted by the taking does not have a street address, but it includes the land located at and near the intersection of W Battles Road and S Depot Street in the city of Santa Maria, CA. The nearest street address is for the Minami Community Center, which is at 600 W Enos Dr, Santa Maria, CA 93458.
Census Tract 06-083-002410
Accessibility Access to the subject site is considered average for the highest and best use of the site. It is primarily accessible by W Battles Road and S Depot Street , with other access points for the Larger Parcel via Enos Drive through the middle of the property and Victoria Place on the north of the property.
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Flood Plain Zone X (Unshaded) - This is referenced by Panel Numbers 06083C0187F, dated September 30, 2005. Zone X (unshaded) is a moderate and minimal risk area.
Areas of moderate or minimal hazard are studied based upon the principal source of flood in the area. However, buildings in these zones could be flooded by severe, concentrated rainfall coupled with inadequate local drainage systems. Local storm water drainage systems are not normally considered in a community’s flood insurance study. The failure of a local dr ainage system can create areas of high flood risk within these zones. Flood insurance is available in participating communities, but is not required by regulation in these zones.
Nearly 25% of all flood claims filed are for structures located within these zones.
Minimal risk areas outside the 1% and 0.2% annual chance floodplains. No BFEs or base flood depths are shown within these zones. (Zone X (unshaded) is used on new and revised maps in place of Zone C.)
Seismic The Larger Parcel is in a moderate risk area, though the risk is similar to all properties in the same neighborhood.
Easements Based on the provided preliminary title report (Commonwealth Land Title Insurance Company - File #932401761 - dated August 6, 2024) for APN 117- 250-029, there is only one easement recorded in favor of the Pacific Gas and Electric Company that was listed as exceptions to title. The easement was not plotted, however there is a high-voltage powerline and poles that run along the western boundary of the parcel. We are also aware that a portion of public right- of-ways known as W Battles Road and S Depot Street run through the property.
Further, we noticed on the inspection several other improvements (hole covers, fencing, ventilation and monitoring equipment) and signs related to Southern California Gas Company subsurface pipelines are located throughout the parcel.
Based on an on -site inspection of the property, it was not apparent that any easements existing in the area of the taking. It is an extraordinary assumption
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of this report that the area of the taking excludes any pre- existing or overlapping easement areas. This appraisal assumes that there are no other adverse easements present. If questions arise, further research is advised.
Soils A detailed soils analysis was not available for review; however any soil issues will not interfere with the highest and best use of the property.
Hazardous Waste I have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter.
Please see the Assumptions and Limiting Conditions for a full disclaimer.
Site Conclusion No significant detriments were discovered that would inhibit the highest and best use of the Larger Parcel. The site’s physical and legal characteristics appear to be supportive of and suitable its current use.
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Plat Map
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Flood Map
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Taxes & Assessment
CURRENT TAXATION & ASSESSMENT DESCRIPTION
There are no taxes levied against the Subject Property as it is owned by a public entity.
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Land Use Restrictions
The land use restrictions on a parcel of real estate are some of the more important issues that affect value.
These restrictions include zoning, overlay districts, title issues, and other regulations.
ZONING
The Larger Parcel is located within the Open Space (OS) zoning district. The OS district is designed and intended to provide open space for the preservation of natural resources, managed production of resources, outdoor recreation, the protection of public health and safety, and to preserve natural scenic areas for future population, and to provide areas for future planned growth of the City. Uses that require a conditional use permit (CUP) in the OS zone include commercial greenhouses and recreational faci lities, single- family dwellings, public utility structures and related uses. Most other uses including commercial, industrial or residential are not permitted . Uses and structures in the OS district shall be subject to development plan review as there are no specific development standards for this district in the municipal code. Within the General Plan, the Larger Parcel has a land use designated of Recreational Open Space (ROS) which is complimentary to the OS zoning district and therefore a zone change is not anticipated.
Zoning Map
ZONING CONCLUSION
Zoning restrictions imposed by the City of Santa Maria significantly limit the legally permitted uses for the Larger Parcel to open space and community uses. Layered upon this are limitations on development due to the presence of public right-of-way and utility easements, effectively limiting the use of the property for public, recreational purposes and open space. These limitation are expected to remain in effect for the foreseeable future.
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Project Description
PROJECT DESCRIPTION
The Project that necessitates the acquisition of a portion of the Subject Property is for the development of electrical and pipeline maintenance facilities that will be used to support and protect existing Southern California Gas Company pipeline improvements that runs through a portion of the Subject Property. The project is required so that Southern California Gas Company can continue to provide service to customers throughout the region.
PROPOSED ACQUISITION
The Southern California Gas Company (Grantee) requires the acquisition of two easements over portions of the Larger Parcel from the City of Santa Maria (Grantor). The proposed easements will be used for construction, maintenance, and replacement of (1) electrical facilities and associated equipment and (2) a fenced pipeline maintenance facility. The easement locations and dimensions are shown in the maps on the following pages and identified in this report as “Parcel 1” and “Parcel 2”, which are described further below. Legal descriptions, survey maps and proposed easement language are contained in the Addenda of this report.
Parcel 1 – The easement is identified as a non-exclusive easement for encroachment purposes. The easement is located in, on, over, under, through and across a 224 SF strip of land. It has a width of 2.5 feet and traverses the site in an irregular manner. The easement allows for the construction, maintenance, and replacement of electrical facilities and associated equipment. It also allows for the Grantee the right to trim or cut down any trees or brush in within the easement area. The Grantor will not construct any improvements in the easement area, however the easement will be subordinate to all rights of way, easements and encumbrances of record over the property and can also be terminated at the Grantor’s sole discretion. Upon termination, the Grantee is required to, at its cost, remove any improvements in the easement area.
Parcel 2 – The easement is identified as a non-exclusive easement for encroachment purposes. The easement is located in, on, over, under, through and across a 4,674 SF strip of land. The easement is irregular in shape, with a length of 168.54 feet and a width that ranges from 20 to 40 feet. The easement allows for the construction, maintenance, and replacement of a fenced pipeline maintenance facility. It also allows for the Grantee the right to trim or cut down any trees or brush in within the easement area. The Grantor will not construct any improvements in the easement area, however the easement will be subordinate to all rights of way, easements and encumbrances of record over the property and can also be terminated at the Grantor’s sole discretion. Upon termination, the Grantee is required to, at its cost, remove any improvements in the easement area.
Impacts of the Takings
The takings will impact the Larger Parcel in the following manner:
• Loss of exclusive use over a portion of the Larger Parcel due to taking Parcels 1 and 2. While the proposed easement is described as a non-exclusive easement for encroachment purposes, the easement language allows for broad use of the easement area by the Grantee for construction and the placement of improvements. The Grantors use of the easement area limited to those areas that will not be improved. For example, the Grantor could traverse over unimproved areas of the easement to access the remainder of their parcel.
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Parcel 1 Acquisition Map
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Parcel 1 Acquisition Map with Aerial Overlay
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Parcel 2 Acquisition Map
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Parcel 2 Acquisition Map with Aerial Overlay
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Impacts of the Takings (Continued)
• While the easements can be terminated by the Grantor at any time, the shape of the parcel where the taking is occurring and the location of other right of way and utility easements suggests this land will not be developed for the foreseeable future.
Project Impacts
No construction will occur on lands that are not controlled by the Grantee, therefore there is no major impacts to the Larger Parcel.
Special Benefits
Special benefits are considered to offset severance damages under California law. Therefore, the impact of special benefits on the Subject Property must be determined in order to address this issue if severance damages are present due to the takings. As wi ll be shown, no severance damages are determined for the taking and therefore special benefits are not measured.
The Remainder Parcel
In the after condition, the Larger Parcel’s land area will remain the same at 34.1600 acres. Within this area, a combined 4,898 square feet will be encumbered with easement rights. T he site will be similar in shape, topography, drainage, street visibility and setbacks as in the before condition. No current improvements are impacted by the easement. Owner is deprived of exclusive use of the land where the easement is located, but they can still use the land, as long as their use doesn't interfere with the easement holders' rights. Otherwise access to the Larger Parcel will be the same.
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Highest & Best Use
INTRODUCTION
This section develops the highest and best use 11 of the Larger Parcel. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive.
These limitations will be discussed in the sections below.
AS VACANT ANALYSIS – BEFORE CONDITION
Legally Permissible
The legal factors that possibly influence the highest and best use of the Larger Parcel are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the Larger Parcel.
The Larger Parcel is located within the Open Space (OS) zoning district. The OS district is designed and intended to provide open space for the preservation of natural resources, managed production of resources, outdoor recreation, the protection of public health and safety, and to preserve natural scenic areas for future population, and to provide areas for future planned growth of the City. Uses that require a conditional use permit (CUP) in the OS zone include commercial greenhouses and recreational faci lities, single- family dwellings, public utility structures and related uses. Most other uses including commercial, industrial or residential are not permitted. Uses and structures in the OS district shall be subject to development plan review as there are no specific development standards for this district in the municipal code. Within the General Plan, the Larger Parcel has a land use designated of Recreational Open Space (ROS) which is complimentary to the OS zoning district and therefore a zone change is not anticipated. Other legal restrictions that limit the use of the Larger Parcel are existing public right -of-way and utility easements, effectively limiting the use of the property for public, recreational purposes and open space. These limitation are expected to remain in effect for the foreseeable future.
Physical Possible
Regarding physical characteristics, the Larger Parcel is irregular in shape with level topography and has adequate access from multiple arterials that bisect the property. The Larger Parcel is physically suitable for a number of uses, including the uses that are legally permissible including recreational and open space uses.
Financial Feasibility
In order to be the highest and best use, the use must be feasible. Rather than performing a feasibility analysis on all possible uses, we will look to inferred feasibility. An inferred feasibility analysis looks to the market to see what other land owners are doing in the way of developing land. If buyers are buying land and developing new residential development, then by inference from the market, a residential use would be considered a feasible use. Open space land in the region is being transacted on a semi-regular basis. While there is limited development potential for these sites, they do provide benefit to owners in the form of preservation and as a community resource. The Larger Parcel does provide benefit to the local community in the form of recreational uses and public rights of way. Given the lack of alternative legal and physically possible uses, an open space or community use is considered a feasible use of the site.
11 The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The Dictionary of Real Estate Appraisal, 6th Edition, The Appraisal Institute, Chicago, IL, 2015
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Conclusion of Highest and Best Use as Vacant
The Larger Parcel is physically suitable for a number of uses; however, any type of development that would generate marketable commercial, industrial or residential real estate is prohibited due the restrictions created by zoning and existing encumbrances. The only possible uses are open-space uses, such as a community park, trails and landscaping. Based on the type of property, it is our opinion that the most probable buyer for the subject would be a conservation or public agency.
AS VACANT ANALYSIS – AFTER CONDITION
In the after condition, the Larger Parcel will effectively remain the same at approximately 34.1600 acres; however, the easement rights encumber a combined 4,898 square feet and have various impacts as outlined starting on page 27. The overall use of the Larger Parcel will not change due to the takings. The right of exclusive use over the easement area is taken, which will impact only that portion of the Larger Parcel.
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Valuation Methods
There are several approaches used to value real estate. The classic approaches include the Cost Approach, the Income Approach, and the Sales Comparison Approach. Since the proposed acquisitions do not impact any improvements and are relegated primary to rights associated with use of portions of the land, the Income Approach and Cost Approach are not applicable. The only approach of the three traditional approaches that will be processed is the Sales Comparison Approach. This valuation approach is discussed in greater detail below.
SALES COMPARISON APPROACH
The Sales Comparison Approach is usually the best method of estimating the market value of most types of real estate. The approach involves several steps including:
• Identify the competitive market,
• Search for sales,
• Confirm the sales,
• Identify the appropriate unit of comparison,
• Analyze the differences between the sales and the Larger Parcel, • Adjust the sales to the Larger Parcel to develop a value range, and • Reconcile the range of adjusted values to a single value estimate for the Larger Parcel.
The f inal conclusion for the Large r Parcel will serve as the basis for the value before acquisition (“Before Analysis”).
VALUATION OF THE PARTS TAKEN
Since the Larger Parcel involves a taking, once a value for the property before acquisition is reconciled, the impact to the property after acquisition is valued (“After Analysis”). The following is a basic outline of our valuation process to establish the value of the Parts Taken:
• Value the permanent parts taken as part of the whole. Calculate the value of the remainder as part of the whole.
• Value the remainder property in the after condition.
• Compare the value of the remainder as part of the whole with the value of the remainder in the after condition to calculate severance damages, if any.
• Project benefits (if any) are considered and net severance damages are calculated. • The temporary loss of use of the property during construction is calculated (if any). • A final estimate of the fair market value of the parts taken is calculated, including all of the above.
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Before Analysis
LAND VALUATION
This section values the Larger Parcel’s Land in its before condition by comparing it with land sales or listings within the competitive market area. Land value is influenced by a number of factors; most notably location, development and use potential, physical and environmental considerations, and market conditions. These factors, as well as others, are considered in the following analysis.
COMPARABLE SELECTION
The sales considered for this analysis were focused primarily on location as well as highest and best use characteristics. Local data, particularly in Santa Barbara County, was most relevant due to the market impacts and desirability of the area. However, due to a limited number of market transactions for properties with similar development restrictions, supplemental data was considered in other areas of California . The comparable data was considered that are being put to a similar use as the highest and best use as the Larger Parcel’s land when possible or were reflective of rural land holdings with limited development potential.
UNIT OF COMPARISON
The most relevant unit of comparison for competing land is the $/Acres. All of the comparable sales presented in this section were reported on this basis.
ANALYSIS OF COMPARABLE SALES
The comparable land sales indicate an overall unadjusted value range from $4,379/Acre to $96,330/Acre, and average of $23,557/Acre. The comparables are discussed below, followed by a summary of the pertinent property and sale details, location map and photographs of the properties.
Land Sale 1 – The 10.90-acre parcel located at 2770 Industrial Pky in Santa Maria sold on April 25, 2024 for $1,050,000 or $96,330/Acre. The property has an irregular shape and is located in multiple zoning districts. An approximate 2.75- acre portion of the parcel locat ed on its north end is located in the Planned Development/Light Manufacturing zoning district, which allows for a variety of industrial uses. The remaining
8.15-acres consists of a long, narrow strip of land that is zoned open space and is partially improved with a bike line. According to Santa Maria's Planning Division, an application was submitted for an industrial use on the north end of the property but no entitlement have been granted yet. Upon inspection, the property was unimproved but the north end was being used as a storage yard.
Land Sale 2 – Richmond Ranch, a 3,654- acre property near San Jose, California, sold to The Conservation Fund (TCF), a nonprofit organization on January 24, 2024. Z&L Properties, a China -based investor and developer of residential properties, sold the property for $16 million or $4,379 per acre. The property is along Coyote Ridge and home to several endangered and threatened species, including puma, American badger, Tule elk, bobcat, gray fox and coyote. Per the TCF, protecting Richmond Ranch enhances wildlife habitat conservation, connectivity and public recreation. To assist with Richmond Ranch’s conservation, Z&L Properties sold the land at a discount of the appraisal value of $35 million. The property has been a working cattle ranch for nearly 100 years and more recent ly a family retreat for the seller. The Richmond Ranch has three living areas, including several ranch houses, one dating back to the 1880s, a barn, stable and other outbuildings along with natural springs and a creek. The majority of the property is locat ed in Santa Clara County and zoned Agricultural Ranchlands which is intended to preserve ranching, the natural resources, and
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the rural character of the areas to which it applies. Several parcels are located in the city of San Jose. Details of the transactions were confirmed by the listing broker, David Wientjes with Kidder Mathews (415.306.7269).
According to Mr. Wientjes, all o f the parcels are subject to open space restrictions and the seller decided to sell the property because they could not develop any of the parcels. He also indicated the improvements had little impact on the sale price due to the intention for conservation of the land.
Land Sale 3 – A 368- acre portion of Camp Pico Blanco sold to the White Stag Leadership Development Academy, which is related to the Esselen Tribe of Monterey County, on November 3, 2023 for $2,100,000 or $5,707 per acre. The property was previously owned by an entity related to the Boy Scouts. Located off Palo Colorado Road, about 10 miles inland from Highway 1, the camp was closed following the Soberanes Fire in 2017, and remained closed after Palo Colorado Road was severely damaged the following winter. Recorded in the grant deed is a restriction that limits future use of the property for a youth camp. The land is located in an ecologically diverse and sensitive environment containing a number of unique animal and plant species.
The sale included several camp related st ructures from the prior owner. Details of the transaction were confirmed through public records and articles.
Land Sale 4 – The 739.57-acre property known as Hollister Ranch, located at 3725 San Miguelito Road in Lompoc, sold on February 18, 2022 for $3,400,000 or $4,597 per acre. The site is located about three miles south of downtown Lompoc. It is improved with several minor structures including a 2,060 SF residence and 2,000 SF barn. The land is zoned AG- II-100 by the County of Santa Barbara and it is also enrolled in the Williamson Act as "Nonprime Agriculture Land" which restricts further development of the property. The land has level to rolling hill topography. Historically it has been used as a rural residence and cattle-grazing ranch.
Water is provided by a municipal (city of Lompoc) owned and operated spring located adjacent to the Property that provides both domestic a nd stock water at no cost. Details of the transaction were confirmed with the listing agent, Larry Lahr with the Rincon Corporation (805.937.2492). According to Mr. Lahr, the buyer intended to use for a family compound and keep the site enrolled in the Williamson Act.
Land Sale 5 - The Nature Conservancy (TNC) purchased the Cojo Jalama Ranches, also known as the Bixby Ranch, in December 2017 for $165 million. The 24,364- acre property in Santa Barbara County, California includes eight miles of undeveloped coastline, two cattle ranches, and wildlife corridors. It's also home to endangered species like the snowy plover, red-legged frog, and Western monarch butterfly. The purchase was made possible by a $165 million donation from Jack and Laura Dangermond, and the property is now called the Jack and Laura Dangermond Preserve. Due to its proximity to the Vandenburg Air Force Base (now Vandenburg Space Force Base) and the risk of a failed rocket launch, there was an easement that restricted development of the property, in addition to the restrictions placed on the property by the California Coastal Commission and the Santa Barbara Board of Supervisors. Details of the transaction were confirmed through public records and articles.
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LAND SALE EXHIBITS
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ADJUSTMENT PROCESS
The sales will be adjusted to the Larger Parcel. Primary considerations of adjustments are made based on 1) location, as proximity to urban areas increases desirability, 2) development potential, as site that could be put to a more productive use is more d esirable than one with limited utility and 3) status of the site as a natural resource.
We have found that date of sale has less impact on value for recreational/opens space sales than these other factors. However, because property values have tended to increase over the past several years, it would be reasonable to apply some inflationary change (3% per year) in value which is considered in this analysis.
The adjusted values per acre from the sales will then be reconciled into an indication of value for the Larger Parcel. We will not use precise quantitative adjustments due to the shortage of sales to analyze for meaningful extraction of a quantifiable adjustment. Instead, qualitative differences will be addressed. The discussion of the sale comparables commences following the location map and aerial photographs of each of the comparable sales.
PHYSICAL ADJUSTMENTS
Size – Consideration is given for size differences. The Subject Property is significantly smaller than Sales 2 through5 and upward adjustments for economies of scale is required given the size differences. Conversely, Land Sale 1 is a third of the size of the Subject Property and a slight downward adjustment is applied.
Location – The Larger Parcel is located within a moderately populated community of Santa Barbara County.
Land Sale 1 is located in the same community and no adjustment is required for location. Land Sale 2 is located on the fringe of development for the city of San Jose, where property values are generally higher than Santa Maria and a downward adjustment is required. Land Sale 5 is located relatively closer to the Larger Parcel, but it is a coastal property with parcels that front on the ocean. A downward adjustment is required for the comparable’s superior coastal location. Land Sales 3 and 4 are located i n remote, low-density inland areas compared to the Larger Parcel and upward adjustments are required.
Zoning/Land Use Restrictions – Zoning and other land use restrictions limit the development potential of the Larger Parcel to open space and community uses. This is similar to the restrictions for Land Sales 2, 3 and
5. No adjustments are required for these comparables.
Land Sale 1 is 10.90- acres in size, but an approximate 2.75-acre portion is zoned for industrial use, with the remaining 8.15-acre zoned Open Space. This zoning designation allows for a portion of the property to be developed, which is significantly superior to the development potential of the Subject Property. There have been few sales of land for industrial development in the local market over the past few years. Four sales from 2021 indicate a price from $5 to $10 per land square foot, while three current listings range from about $7 to $20 per land square foot though properties often transact for lower than the listing price in this market . The
2.75-acre portion of the property has an irregular shape due to a railroad spur that runs along the property, therefore the contributing value of this land should have a current value near the lower end of the sale and listing data. Using a $7 per land square foot conclusion for the industrial zoned portion of the property, this implies a value of $0.60 per square foot or about $26,000 per acre for the remaining 8.15- acre zoned Open Space portion. At $8 per square foot, the implied open space portion declines to about $11,250 per acre. The partially superior zoning for Land Sale 1 requires a significant downward adjustment.
Finally, Land Sale 4 is located in a less restrictive zoning district and is also enrolled in the Williamson Act program which protects agricultural and open space lands. While still restrictive, Williamson Acts contracts
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can expire or prematurely terminated, allowing for development. As a result, Land Sale 4 has slightly superior development rights remaining which requires a downward adjustment.
Other Considerations – Other characteristics which can impact value include access, exposure, parcel shape, and topography. For conservation and open space land, these features have less of an impact on value and no adjustments for these items were required in this analysis.
As summary of the quantitative market conditions and qualitative physical adjustments (“ -“ denoting downward adjustment, “+” upward adjustment and “=” equal or no adjustment) that were applied to each of the comparables are shown in the table below.
SECONDARY DATA
To supplement the primary comparables, we have included three older sales from the Southern California region. The three sales summarized in the table on the top of the following page are somewhat dated, but all are open space land that is not developable. Sale 1 was purchased by a private party. The other two sales were purchased by government entities for public use. These properties are located in areas that are more densely populated than the Subject Property’s location. However, those adjustments are offset by a need for a market conditions adjustment. This data supports a value near Land Sale 1, after adjustments for the partially superior zoning (i.e. $11,250 to $26,000 per acre).
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Secondary Land Sales Summary
LAND VALUE CONCLUSION
The comparable data indicates a range of $4,507 to $98,428 per acre after quantified transactional adjustments, which is a very wide range. However, if the contributing value of the industrial zoned portion of Land Sale 1 is extracted, the implied value for the remaining open space land is about $11,250 to $26,000 per acre, which reduces the upper limit of the range.
The low end of the range is represented by the Richmond Ranch which was reported to have sold at a discount to aid conservation. While not the sale price, the appraised value of the property prior to the sale was $35 million, which would have resulted in a per acre price of $9,579.
Land Sale 4 and then 3 are the next lowest sale prices. These sales are located in rural areas and required large adjustments for their remote locations. Land Sale 5 is a large tract of coastal land that has significant environmental features that are valued by conservation agencies, however it is significantly larger than the Subject and a higher value is still supported for the Larger Parcel.
Finally, the secondary comparables indicate a value between about $12,400 and $16,300 per acre, which is supported by the higher end of the primary data range.
After considering the above, the Larger Parcel’s value should be in a range of more than $8,2 00 (above Land Sale 5) to less than $26,000 (below adjusted Land Sale 1) per acre. We have reconciled at the high end of this range consistent with the definition of market value. Our final conclusion of value is $25 ,000 per acre (or $0.57/SF, which is used in the value of the parts taken in the following section). This results in the following value indication:
No. Location B uyer Date Acres Price
Price Per
Acre
1 Off Burlwood Rd., southwest of Halsey Canyon M edrano Jan-18 38.34 $475,000 $12,389 2 East side of I-5 at Calgrove MRCA Oct-14 301.60 $4,650,000 $15,418 3 Newhall Pass/I-5 Corridor Santa Clarita Mar-17 241.00 $3,925,000 $16,286
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Analysis After The Taking
INTRODUCTION
The first step in determining the just compensation associated with the parts taken is to estimate the contributory value of the parcel to be acquired as part of the Larger Parcel before the taking. The land value will be estimated based on the land value conclusion on the previous pages.
The next step in the analysis is to determine the net damages, if any, that accrue to the remainder by reason of the taking or the construction of the project in the manner proposed. This analysis involves determining the value of the remaining property after the taking. The difference between the value of the remainder in the before condition, and the value of the remainder in the after condition, represents the loss in value that accrues to the remaining property by reason of the taking and the construction of the project in the manner proposed.
Severance damages that are calculated are then offset by project benefits, if any. If mitigation costs are required to negate potential severance damages, they are included as part of the value of the property rights to be acquired and considered to be curable severance damages. Finally, the owner must be compensated if there is a time period in which they lose the partial or entire use of any of the property acquired for the Project.
VALUE OF PARTS TAKEN
The data used in developing our opinion of value for the part acquired is the same information that has been used in completing our valuation of the property in the preceding valuation analysis before the taking. The part taken is initially valued as a portion of the whole. That is, for the area reflecting a fee acquisition, the value is allocated on a proportionate basis according to the value of the underlying land area affected.
The area taken for the permanent, non- exclusive easement represents a portion of the rights in, on, over, under, through and across the designated area. The owner can still use the land in these areas, as long as their use doesn't interfere with the easement holders' rights. Accordingly, the area required for the easement taking contributes to the overall property value at a percentage of the fee simple interest. Below is the breakdown of the land area that is being acquired and the remaining.
Site Value
The site area for the part taken totals a combined 4,898 SF. The overall site value on a per acre basis was $25,000/acre, which converts to $0.57/SF. In this analysis, we applied the overall price per square foot to the taken area. However, since only a portion of the property rights are being acquired, the part taken is estimated on a percentage of the fee conclusion above.
We reviewed various articles, interviewed market participants, and researched paired sale data. While paired sale data exists on a limited basis, easements are each unique and not transferred in an open and active market. Therefore, they cannot be easily applied to the Subject Property. Therefore, a paired sales analysis was not undertaken.
SUMMARY OF PARTS ACQUIRED
WHOLE AC WHOLE SF ACQUISITION SF * REMAINDER SF
Land (Fee Taking) 34.16 1,488,010 0 1,488,010
Encroachment Easement #1 224
Encroachment Easement #2 4,674
Total 34.16 1,488,010 0 1,488,010
* Easement area remains in the after condition and is therefore not deducted from the Larger Parcel
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There are numerous articles which reference the valuation of subsurface rights, but many refer to the table from an article titled The Valuation of Easements by Donnie Sherwood, SR/WA/ MAI, FRICS that was published in the Right of Way Magazine (issue November/December 2014) and is shown below.
Easement Valuation Matrix
The part taken includes rights in, on, over, under, through and across the designated area. The owner can still use the land in these areas, as long as their use doesn't interfere with the easement holders' rights. Therefore, the rights acquired are more than half of the fee interest in the land and the value of the Subject Property encumbrances should be in a range of 51%-74% as shown in the Easement Valuation Matrix above. While it could be argued that the Subject easements represent a “severe impact on surface use” since the land cannot be developed ( suggesting existing easements account for 90 %-100% of the fee value ), the underlying land value for the Subject Property was already based on sites with limited development potential, therefore the percentage should be less.
The table on the top of the following page is from a presentation at an October 2018 conference hosted by the CLE International’s Eminent Domain Institute. The table is presented in a similar fashion as the Sherwood table but includes separate indications for non- exclusive and exclusive easements. The table indicates the value of non-exclusive surface and aerial easements (which match the “in, on, over, through and across” rights that are to be acquired from the land) accounts for 40% to 85% of the fee value of the property, while non- exclusive underground easements (which matches the “under” rights that are to be acquired from the land) is lower at 15% to 20%.
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OCTOBER 2018 CLE INTERNATIONAL EMINENT DOMAIN INSTITUTE
VALUE OF AN EASEMENT UNDER EMINENT DOMAIN
TYPICAL % OF FEE – VALUE OF EASEMENT TAKE
The data from the two tables are widely used by appraisers as general guidance for valuing various types of easements. As shown, they suggest a surface easement accounts for between 40% and 85% of the fee value of the land, and subsurface rights are 15 % to 20%. These tables show that there is no uniform standard for the value of easements, which is understandable since each easement is unique. Still these tables, when combined with other data, can provide us with a reasonable range for the value of the subsurfa ce rights that are being acquired for the Subject Property.
In addition to the tables, we also interviewed several market participants familiar with easement acquisitions in order to understand what they have typically paid for easements and subsurface rights in the past. These interviews are summarized below.
• Jennifer Goodell, SR/WA, San Bernardino Real Estate Services Department - Ms. Goodell stated that access easements are valued at 50% of the total property value. In addition, if the property were to be partially acquired such as a utility easement, the value of the portion would be at 30% of the property value. She also mentioned that their department uses the valuation matrix (shown on the previous page) created by Mr. Sherwood. She noted that there are numerous examples where condemnation cases were settled or litigated around those percentages. • Nancy Summers, San Bernardino Real Estate Services Department – Leasing & Acquisition Division - Ms. Summers stated that most of the subsurface easements that they purchase (or sell) are for shallow
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pipelines along existing utility corridors. Ms. Summers said that value of these types of easements are typically established at 30% of fee value.
• Rosanna Russell, Director of Real Estate and Brian Morelli, Right of Way Manager at the San Francisco Public Utilities Commission – Ms. Russell indicated that their agency acquires subsurface easements, but the easements do not typically specify the depth of the installation, but rights below the utility lines are preserved as a part of the easement. She stated that the value of the easements is based on an appraisal. Mr. Morelli added that they obtained an appraisal report for a project that required underground electrical, communication and water lines. Those easements were appraised at 25% of fee. They also had a PG&E vault easement that was exclusive and would not permit any other use over or within the easement area. That easement was appraised at 75% of fee.
Given the nature of the easement which includes impact to the surface , subsurface and air rights, we believe that the rights taken for the easement s account for 75% of the fee value of the land. There will be common enjoyment of the easement area by both the underlying fee owner and the Southern California Gas Company, however the use of the Grantee will be superior to that over the Grantor when improved.
Building Improvements
There are no current building improvements that are included in the taking. Accordingly, we have not considered any loss to the owner for the building improvements in the part taken.
Site Improvements
There are no site improvements that are included in the taking. Accordingly, we have not considered any loss to the owner for the site improvements in the part taken.
TOTAL CONTRIBUTORY VALUE OF THE PARTS TAKEN
The table below summarizes the value of the parts taken.
VALUE OF THE REMAINDER AS A PART OF THE WHOLE
Deducting the value of the permanent taking from the value of the property in the before condition results in a calculation leading to the value of the Remainder Parcel as a part of the whole:
The above figure is used for comparison purposes (with the value of the remainder in the after condition) as the method for estimating severance damages to the remainder.
VALUE OF THE REMAINDER IN THE AFTER CONDITION
The remainder property in the after condition will be mostly the same character as in the before condition.
The land will still total 34.1600 acres or 1,488,010 square feet, shape and topography will be the same and
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access will effectively be the same. Non-exclusive surface, subsurface and air rights (4,898 square feet in total) will be conveyed at the site of the taking , reducing the unencumbered land area to 1,483,112 square feet (1,488,010 SF – 4,898 SF). As a result, the same land sales serve as the basis for valuation of the remainder property in the after condition.
The Larger Parcel was previously valued at $25,000 per acre or $0.57 per square foot. Analyzing the same land sales for the Remainder in the After Condition results in the same per square foot conclusion for the unencumbered land. The site is zoned the same, has the same topography and the same access. Therefore, the land value in the after condition is still $25,000 per acre or $0.57 per square foot, plus the remaining rights of the easement land (inverse of the concluded 75% fee acquisition) which is set at 25% of the value.
Combined, the Value of the Remainder In the After Condition is calculated in the table below.
SEVERANCE DAMAGES
Severance damages are equal to the difference between the value of the remainder as a portion of the whole and the value of the remainder in the after condition before considering benefits. If the value of the remainder in the after condition is less than the value of the remainder as a portion of the whole, the property suffers permanent severance damages. Damages can be caused by the actual taking or construction of the improvements in the manner proposed. The severance damages are therefore indicated through the following calculation:
PROJECT BENEFITS
In the After Condition, the Larger Parcel will appear generally similar to its Before Condition. Any benefits that accrue to the remainder, can only accrue as the result as construction of the improvement in the manner proposed. Under California law, project benefits may only be used to offset severance damages. Since it is our opinion that the Larger Property suffers no severance damages, we have not finalized an analysis leading to a final opinion of project benefits. Accordingly, there are no benefits accruing to the remainder property as a result of this public improvement project. Should there be a finding of severance damages applicable to the remainder parcel, our opinion of project benefits could be finalized and applied to such a finding.
VALUATION SUMMARY
On the preceding pages we have developed opinions pertaining to the Larger Parcel and the components of which are relevant to the parts taken and the impact of the project, which are summarized in the table below.
Also included are the Client’s Nominal Value Threshold for permanent acquisitions. The higher of the two conclusions is reconciled as the value of the proposed easements required for the Project.
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VALUATION SUMMARY
VALUE OPINIONS VALUE OF PROPERTY
RIGHTS
CLIENT NOMINAL
VALUE THRESHOLD CONCLUSION
Encroachment Easements $2,108 $1, 000 $2,108
Severance Damages $0 $0 $0
Project Benefits $0 $0 $0
TOTAL FAIR MARKET VALUE OF PROPOSED PROPERTY
RIGHTS AQUIRED (ROUNDED) $2,110 $1,000 $ 2,110
PRELIMINARY REPORT
Prelim Number:
4400 MacArthur Blvd, Suite 800
Newport Beach, CA 92660
932401761
CLTA Preliminary Report Form (02/03/2023) Printed: 08.16.24 @ 11:38 AM
Issuing Policies of Commonwealth Land Title Insurance Company Project Name: 117-250-029/ W Battles & S Depot
Title Officer: Chris Maziar
Phone: 9497243170
Fax: 949-258-5740
Email: [email protected]
Order No.: 932401761
Loan No.:
Southern California Gas
555 W 5th St, ML 11A1
Los Angeles, CA 90013
Attn: Michael Sarad
Ref. No.: 117-250-029 W Battles & S Depot
Property: APN/Parcel ID(s) 117-250-029
In response to the application for a policy of title insurance referenced herein, Commonwealth Land Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of a defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Exclusions from Coverage, and Conditions of said policy forms.
With respect to any contemplated owner's policy, the printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA/ALTA Homeowner's Policy of Title Insurance, which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report.
Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered.
It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land.
This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a binder or commitment should be requested.
Countersigned By:
Authorized Officer or Agent
Ron Howarth
CLTA Preliminary Report Form (02/03/2023) Printed: 08.16.24 @ 11:38 AM
COMMONWEALTH LAND TITLE COMPANY PRELIM NO. 932401761
Effective date: August 6, 2024 at 07:30 AM
The form of Policy or Policies of Title Insurance contemplated by this Report is:
CLTA Standard Coverage Owner's Policy - 2022
1. The estate or interest in the Land hereinafter described or referred to covered by this Report is:
Fee Simple
2. Title to said estate or interest at the date hereof is vested in:
City of Santa Maria, a municipal corporation
3. The Land referred to in this Report is described as follows:
SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF
EXHIBIT A
Legal Description
CLTA Preliminary Report Form (02/03/2023) Printed: 08.16.24 @ 11:38 AM
For APN/Parcel ID(s): 117-250-029
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA MARIA, COUNTY OF SANTA BARBARA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 22, TOWNSHIP 10 NORTH, RANGE 34 WEST, SAN
BERNARDINO MERIDIAN, IN THE CITY OF SANTA MARIA, COUNTY OF SANTA BARBARA, STATE OF CALIFORNIA, DESCRIBED AS PARCEL ONE IN THE DEED TO UNION OIL COMPANY OF CALIFORNIA, DATED JULY 1, 1949 AND RECORDED AUGUST 17, 1949 IN BOOK 869, PAGE 28 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SAID PARCEL BEING MORE PARTICULARLY DESCRIBED IN DEED AS FOLLOWS:
BEGINNING AT A POINT WHICH IS 73 FEET NORTH AND 30 FEET EAST OF THE SOUTHWEST CORNER OF THE NORTHEAST QUARTER OF SECTION 22, TOWNSHIP 10 NORTH RANGE 34 WEST, S.B.B.& M.; THENCE NORTH PARALLEL WITH AND 30 FEET DISTANT EASTERLY FROM THE WEST LINE OF THE NORTHWEST QUARTER OF SAID SECTION 22, 540.2 FEET; THENCE IN A SOUTHERLY DIRECTION ON A CURVE TO THE LEFT WITH A UNIFORM RADIUS OF 543.69 FEET, A DISTANCE OF 849.76 FEET, MORE OR LESS, TO A POINT WITH IS 73 FEET
NORTHERLY, MEASURED AT RIGHT ANGELES FROM THE SOUTHLINE OF THE NORTHEAST QUARTER OF SAID SECTION 22 AS AFORESAID; THENCE WEST, PARALLEL WITH AND 73 FEET NORTHERLY FROM SAID SOUTH LINE OF NORTHEAST QUARTER A DISTANCE OFF 540.2 FEET TO THE POINT OF BEGINNING.
EXCEPTING THEREFROM THAT PORTION THEREOF DESCRIBED IN DEED TO SOUTHERN COUNTLES GAS COMPANY OF CALIFORNIA, DATED JULY 1, 1943, AND RECORDED IN BOOK 572, PAGE 381 OF OFFICIAL RECORDS, RECORDS OF SAID COUNTY, AND DESCRIBED THEREIN AS FOLLOWS:
BEGINNING AT THE CENTER OF SECTION 22, TOWNSHIP 10 NORTH, RANGE 34 WEST, S.B.B.&M.; THENCE NORTH 0° 33' 07" WEST, ALONG THE QUARTER SECTION LINE 70.0 FEET; THENCE SOUTH 89° 42' 14" EAST 30 FEET TO THE REAL POINT OF BEGINNING; THENCE FIRST, SOUTH 89° 42' 14" EAST 50 FEET; THENCE SECOND, NORTH 0° 33' 07" WEST 20 FEET; THENCE THIRD, NORTH 89° 42' 14" WEST 50 FEET; THENCE FOURTH, SOUTH 0° 33' 07" EAST 20 FEET TO THE REAL POINT OF BEGINNING.
ALSO EXCEPTING THEREFROM ALL OIL, GAS, OTHER HYDROCARBON SUBSTANCES AND MINERALS OF ANY KIND OR CHARACTER, IN ON OR THEREUNDER, AS RESERVED IN DEEDS OF RECORD.
PLOTTED EASEMENTS
COMMONWEALTH LAND TITLE COMPANY PRELIM NO. 932401761
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EXCEPTIONS
At the date hereof, items to be considered and exceptions to coverage in addition to the printed exceptions and exclusions in said policy form would be as follows:
1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2024-2025.
2. There were no taxes levied for the fiscal year 2023-2024 as the property was vested in a public entity.
Affects: 117-250-029
3. Any liens or other assessments, bonds, or special district liens including without limitation, Community Facility Districts, that arise by reason of any local, City, Municipal or County Project or Special District.
4. The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Chapter 3.5 (commencing with Section 75) or Part 2, Chapter 3, Articles 3 and 4, respectively, of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A or as a result of changes in ownership or new construction occurring prior to Date of Policy.
5. Water rights, claims or title to water, whether or not disclosed by the public records.
6. INTENTIONALLY DELETED
7. INTENTIONALLY DELETED
8. Matters contained in that certain document
Entitled: Agreement
Dated: May 29, 1968
Executed by: Union Oil Company of California, a corporation and Pacific Gas and Electric Company, a corporation
Recording Date: August 1, 1968
Recording No.: 23999, Book 2240, Page 1146 of Official Records Reference is hereby made to said document for full particulars.
9. INTENTIONALLY DELETED
INTENTIONALLY DELETED
10. INTENTIONALLY DELETED
INTENTIONALLY DELETED
11. INTENTIONALLY DELETED
INTENTIONALLY DELETED
12. Please be advised that our search did not disclose any open Deeds of Trust of record. If you should have knowledge of any outstanding obligation, please contact the Title Department immediately for further review prior to closing.
13. Any rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the public records.
The Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of COMMONWEALTH LAND TITLE COMPANY PRELIM NO. 932401761
CLTA Preliminary Report Form (02/03/2023) Printed: 08.16.24 @ 11:38 AM
title insurance without excepting this item from coverage.
The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents.
14. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other matters which a correct survey would disclose and which are not shown by the public records.
15. Any easements not disclosed by the public records as to matters affecting title to real property, whether or not said easements are visible and apparent.
16. Matters which may be disclosed by an inspection and/or by a correct ALTA/NSPS Land Title Survey of said Land that is satisfactory to the Company, and/or by inquiry of the parties in possession thereof.
END OF EXCEPTIONS
PLEASE REFER TO THE "INFORMATIONAL NOTES" AND "REQUIREMENTS" SECTIONS WHICH FOLLOW FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION.
COMMONWEALTH LAND TITLE COMPANY PRELIM NO. 932401761
CLTA Preliminary Report Form (02/03/2023) Printed: 08.16.24 @ 11:38 AM
REQUIREMENTS
1. This Company will require evidence of compliance with the statutory limitations incident to the governmental agency named below, with reference to any conveyance of an interest in the Land this Company will be asked to record and/or rely upon in the issuance of any form of title insurance.
Governmental agency: City of Santa Maria, a municipal corporation
2. In order to complete this report, the Company requires a Statement of Information to be completed by the following party(ies),
Party(ies): All Parties
The Company reserves the right to add additional items or make further requirements after review of the requested Statement of Information.
NOTE: The Statement of Information is necessary to complete the search and examination of title under this order. Any title search includes matters that are indexed by name only, and having a completed Statement of Information assists the Company in the elimination of certain matters which appear to involve the parties but in fact affect another party with the same or similar name. Be assured that the Statement of Information is essential and will be kept strictly confidential to this file.
3. Unrecorded matters which may be disclosed by an Owner’s Affidavit or Declaration. A form of the Owner’s Affidavit/Declaration is attached to this Preliminary Report/Commitment. This Affidavit/Declaration is to be completed by the record owner of the land and submitted for review prior to the closing of this transaction. Your prompt attention to this requirement will help avoid delays in the closing of this transaction. Thank you.
The Company reserves the right to add additional items or make further requirements after review of the requested Affidavit/Declaration.
END OF REQUIREMENTS
COMMONWEALTH LAND TITLE COMPANY PRELIM NO. 932401761
CLTA Preliminary Report Form (02/03/2023) Printed: 08.16.24 @ 11:38 AM
INFORMATIONAL NOTES
1. Note: None of the items shown in this report will cause the Company to decline to attach ALTA Endorsement Form 9 to an Extended Coverage Loan Policy, when issued.
2. Note: There are NO conveyances affecting said Land recorded within 24 months of the date of this report.
3. Note: The charge for a policy of title insurance, when issued through this title order, will be based on the Basic Title Insurance Rate.
4. Notice: Please be aware that due to the conflict between federal and state laws concerning the cultivation, distribution, manufacture or sale of marijuana, the Company is not able to close or insure any transaction involving Land that is associated with these activities.
5. The application for title insurance was placed by reference to only a street address or tax identification number.
The proposed Insured must confirm that the legal description in this report covers the parcel(s) of Land requested to be insured. If the legal description is incorrect, the proposed Insure932401626d must notify the Company and/or the settlement company in order to prevent errors and to be certain that the legal description for the intended parcel(s) of Land will appear on any documents to be recorded in connection with this transaction and on the policy of title insurance.
6. Note: If a county recorder, title insurance company, escrow company, real estate broker, real estate agent or association provides a copy of a declaration, governing document or deed to any person, California law requires that the document provided shall include a statement regarding any unlawful restrictions. Said statement is to be in at least 14-point bold face type and may be stamped on the first page of any document provided or included as a cover page attached to the requested document. Should a party to this transaction request a copy of any document reported herein that fits this category, the statement is to be included in the manner described.
7. Note: Any documents being executed in conjunction with this transaction must be signed in the presence of an authorized Company employee, an authorized employee of a Company agent, an authorized employee of the insured lender, or by using Bancserv or other Company-approved third-party service. If the above requirement cannot be met, please call the Company at the number provided in this report.
8. Pursuant to Government Code Section 27388.1, as amended and effective as of 1-1-2018, a Documentary Transfer Tax (DTT) Affidavit may be required to be completed and submitted with each document when DTT is being paid or when an exemption is being claimed from paying the tax. If a governmental agency is a party to the document, the form will not be required. DTT Affidavits may be available at a Tax Assessor-County Clerk-Recorder.
9. Note: The policy of title insurance will include an arbitration provision. The Company or the insured may demand arbitration. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. Please ask your escrow or title officer for a sample copy of the policy to be issued if you wish to review the arbitration provisions and any other provisions pertaining to your Title Insurance coverage.
10. Due to the special requirements of SB 50 (California Public Resources Code Section 8560 et seq.), any transaction that includes the conveyance of title by an agency of the United States must be approved in advance by the Company’s State Counsel, Regional Counsel, or one of their designees.
END OF INFORMATIONAL NOTES
Wire Fraud Alert Page 8
Original Effective Date: 5/11/2017
Current Version Date: 5/11/2017 932401761 - WIRE0016 (DSI Rev. 12/07/17) TM and © Fidelity National Financial, Inc. and/or an affiliate. All rights reserved
WIRE FRAUD ALERT
This Notice is not intended to provide legal or professional advice.
If you have any questions, please consult with a lawyer.
All parties to a real estate transaction are targets for wire fraud and many have lost hundreds of thousands of dollars because they simply relied on the wire instructions received via email, without further verification. If funds are to be wired in conjunction with this real estate transaction, we strongly recommend verbal verification of wire instructions through a known, trusted phone number prior to sending funds.
In addition, the following non-exclusive self-protection strategies are recommended to minimize exposure to possible wire fraud.
NEVER RELY on emails purporting to change wire instructions. Parties to a transaction rarely change wire instructions in the course of a transaction.
ALWAYS VERIFY wire instructions, specifically the ABA routing number and account number, by calling the party who sent the instructions to you. DO NOT use the phone number provided in the email containing the instructions, use phone numbers you have called before or can otherwise verify. Obtain the number of relevant parties to the transaction as soon as an escrow account is opened. DO NOT send an email to verify as the email address may be incorrect or the email may be intercepted by the fraudster. USE COMPLEX EMAIL PASSWORDS that employ a combination of mixed case, numbers, and symbols. Make your passwords greater than eight (8) characters. Also, change your password often and do NOT reuse the same password for other online accounts.
USE MULTI-FACTOR AUTHENTICATION for email accounts. Your email provider or IT staff may have specific instructions on how to implement this feature.
For more information on wire-fraud scams or to report an incident, please refer to the following links:
Federal Bureau of Investigation: Internet Crime Complaint Center:
http://www.fbi.gov http://www.ic3.gov
Privacy Statement Printed: 08.16.24 @ 11:38 AM
SCA0003004.doc Page 9 of 18 CA-CW-FXFC-02620.206538-932401761
FIDELITY NATIONAL FINANCIAL
CALIFORNIA PRIVACY NOTICE
Fidelity National Financial, Inc. and its majority-owned subsidiary companies (collectively, "FNF," "our," or "we") respect and are committed to protecting your privacy. This California Privacy Notice explains how we collect, use, and disclose Personal Information, when and to whom we disclose such information, and the rights you, as a California resident ("Consumer"), have regarding your Personal Information ("California Privacy Rights"). "Personal Information" means information that identifies, relates to, describes, and is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household. If FNF has collected, used, or disclosed your Personal Information in relation to a job application or employment, independent contractor, officer, owner, or director relationship with FNF, FNF's practices are discussed in our Notice at Collection for Prospective Employees, available at Prospective California Employees.
Some subsidiaries maintain separate California Privacy Notices or privacy statements. If a subsidiary has a separate California Privacy Notice, it will be available on the subsidiary's website, and this California Privacy Notice does not apply.
Collection of categories of Personal Information:
In the preceding twelve (12) months FNF has collected, and will continue to collect, the following categories of Personal Information from you:
Identifiers such as name, address, telephone number, IP address, email address, account name, social security number, driver's license number, state identification card, passport number, financial information, date of birth, or other similar identifiers;
Characteristics of protected classifications under California or Federal law; Commercial information, including records of personal property, products or services purchased, or other purchasing or consuming histories;
Internet or other electronic network activity information including, but not limited to browsing history on FNF websites, and information regarding a Consumer's interaction with an FNF website; Geolocation data;
Unique biometric data used to authenticate a specific individual such as a fingerprint, retina, or iris image; Professional or employment information;
Education Information.
This Personal Information is collected from the following sources:
Information we receive from you on applications or other forms; Information about your transactions with FNF, our affiliates, or others; Information we receive from consumer reporting agencies and/or governmental entities, either directly from these entities, or from internet service providers, data analytics providers, and social networks; Information from the use of our websites and mobile applications; Information we receive directly from you related to doing business with us.
This Personal Information is collected for the following business purposes:
To provide products and services to you or in connection with a transaction involving you; To perform a contract between FNF and the Consumer;
To improve our products and services;
To comply with legal obligations;
To detect and protect against fraudulent or illegal activity; To communicate with you about FNF or our affiliates;
To maintain an account with FNF or our affiliates;
Privacy Statement Printed: 08.16.24 @ 11:38 AM
SCA0003004.doc Page 10 of 18 CA-CW-FXFC-02620.206538-932401761 To maintain the security of our systems, tools, accounts, and applications; To verify and authenticate identities and credentials; To provide, support, personalize, and develop our websites, products, and services; To directly market our products to consumers;
As described to you when collecting your Personal Information or as otherwise set forth in the California Consumer Privacy Act.
Disclosures of Personal Information for a business purpose:
In the preceding twelve (12) months FNF has disclosed, and will continue to disclose, the categories of Personal Information listed above for a business purpose. We may disclose Personal Information for a business purpose to the following categories of third parties:
FNF affiliates and subsidiaries;
Non-affiliated third parties, with your prior consent; Businesses in connection with the sale or other disposition of all or part of the FNF business and/or assets; Service Providers and non-affiliated third parties such as data analytics providers; Law enforcement or authorities in connection with an investigation, or in response to a subpoena or court order.
Sale of Personal Information:
In the preceding twelve (12) months, FNF has not sold or shared Personal Information. FNF does not sell or share Personal Information.
Retention Periods:
Due to the breadth and variety of data collected by FNF, it is not possible for us to provide you with a comprehensive list of timeframes during which we retain each category of Personal Information. FNF retains categories of information as reasonably necessary to satisfy the purpose for which we collect the information. This time period varies depending on the purpose for which we collected the information, the nature and frequency of our interactions and relationship with you, whether we have a legal basis to continue retaining the information, industry practices, the value and sensitivity of the information, and state and federal recordkeeping requirements.
Personal Information of minors:
FNF does not knowingly collect the Personal Information of minors. FNF does not sell or share the information of consumers under sixteen (16) years of age.
Sensitive Personal Information:
FNF does not use or disclose sensitive Personal Information for any purposes other than those specified in the California Consumer Privacy Act.
Right to know:
Consumers have a right to know about Personal Information collected, used, disclosed, shared, or sold, including the categories of such Personal Information, as well as the purpose for such collection, use, disclosure, sharing, or selling, categories of third parties to whom Personal Information is disclosed, shared or sold, and the specific pieces of Personal Information collected about the consumer. Consumers have the right to request FNF disclose what Personal Information it collected, used, and disclosed in the past twelve (12) months.
Right to request deletion:
Consumers have a right to request the deletion of their Personal Information, subject to certain exceptions.
Privacy Statement Printed: 08.16.24 @ 11:38 AM
SCA0003004.doc Page 11 of 18 CA-CW-FXFC-02620.206538-932401761 Right to Correct:
Consumers have the right to correct inaccurate Personal Information.
Right to non-discrimination:
Consumers have a right not to be discriminated against because of exercising their consumer privacy rights. We will not discriminate against Consumers for exercising any of their California Privacy Rights.
Privacy Requests:
To exercise any of your California Privacy Rights, or if acting as an authorized agent on behalf of another individual, please visit California Privacy Request, call us Toll Free at 888-413-1748, or write to the address at the end of this notice.
Upon making a California Privacy Request, FNF will verify the consumer's identity by requiring an account, loan, escrow number, or other identifying information from the consumer.
The above-rights are subject to any applicable rights and obligations including both Federal and California exemptions rendering FNF, or Personal Information collected by FNF, exempt from certain CCPA requirements.
A Consumer may use an Authorized Agent to submit any CCPA request. Authorized agents’ requests will be processed like any other CCPA request, but FNF will also require the Consumer provide the agent written permission to make the request and verify his or her identity with FNF.
FNF website services for mortgage loans:
Certain FNF companies provide services to mortgage loan servicers, including hosting websites that collect customer information on behalf of mortgage loan servicers (the "Service Websites"). The Service Websites may contain links to both this Privacy Notice and the mortgage loan servicer or lender's privacy notice. The sections of this Privacy Notice describing the categories, sources, and uses of your Personal Information do not apply to the Service Websites. The mortgage loan servicer or lender's privacy notice governs use, disclosure, and access to your Information. FNF does not share Information collected through the Service Websites, except (1) as required or authorized by contract with the mortgage loan servicer or lender, or (2) as required by law or in the good-faith belief that such disclosure is necessary to comply with a legal process or applicable law, to enforce this Privacy Notice, or to protect the rights, property, or safety of FNF or the public.
California Privacy Notice - Effective Date:
This California Privacy Notice was last updated on July 1, 2024.
Contact for more information:
For questions or concerns about FNF's California Privacy Notice and privacy practices, or to exercise any of your California Privacy Rights, please visit California Privacy, call Toll Free 888-413-1748, or contact us by mail at the below address.
Fidelity National Financial, Inc.
601 Riverside Avenue
Jacksonville, Florida 32204
Attn: Chief Privacy Officer
ATTACHMENT ONE
Attachment One (11/04/22)
CALIFORNIA LAND TITLE ASSOCIATION
STANDARD COVERAGE POLICY - 1990 (11-09-18)
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge.
3. Defects, liens, encumbrances, adverse claims or other matters:
(a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy.
4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated.
5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law.
6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.
EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:
1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.
Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.
2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.
6. Any lien or right to a lien for services, labor or material unless such lien is shown by the public records at Date of Policy.
EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART II
(Variable exceptions such as taxes, easements, CC&R’s, etc., are inserted here )
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
CALIFORNIA LAND TITLE ASSOCIATION
STANDARD COVERAGE OWNER'S POLICY (02-04-22)
EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys’ fees, or expenses that arise by reason of:
1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.
Exclusion 1 does not modify or limit the coverage provided under Covered Risk 5 or 6.
2. Any power of eminent domain. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 7.
3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by the Insured Claimant; b. not Known to the Company, not recorded in the Public Records at the Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; c. resulting in no loss or damage to the Insured Claimant; d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 9 or 10); or
e. resulting in loss or damage that would not have been sustained if consideration sufficient to qualify the Insured named in Schedule A as a bona fide purchaser had been given for the Title at the Date of Policy.
4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights law, that the transaction vesting the Title as shown in Schedule A is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 9.b.
5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8.
6. Any lien on the Title for real estate taxes or assessments imposed or collected by a governmental authority that becomes due and payable after the Date of Policy.
Exclusion 6 does not modify or limit the coverage provided under Covered Risk 2.b. 7 Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.
EXCEPTIONS FROM COVERAGE
Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This policy treats any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document are excepted from coverage.
This policy does not insure against loss or damage and the Company will not pay costs, attorneys’ fees, or expenses resulting from the terms and conditions of any lease or easement identified in Schedule A, and the following matters:
PART I
1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.
2. Any facts, rights, interests, or claims that are not shown by the Public Records at Date of Policy but that could be (a) ascertained by an inspection of the Land, or (b) asserted by persons or parties in possession of the Land.
3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.
4. Any encroachment, encumbrance, violation, variation, easement, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records at Date of Policy.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.
7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.
PART II
(Variable exceptions such as taxes, easements, CC&R’s, etc., are inserted here )
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (7-01-21)
EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy and We will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:
1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, or regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.
Exclusion 1 does not modify or limit the coverage provided under Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23, or 27.
2. Any power to take the Land by condemnation. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 17.
3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by You;
b. not Known to Us, not recorded in the Public Records at the Date of Policy, but Known to You and not disclosed in writing to Us by You prior to the date You became an Insured under this policy;
c. resulting in no loss or damage to You;
d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 5,
8.f., 25, 26, 27, 28, or 32); or
e. resulting in loss or damage that would not have been sustained if You paid consideration sufficient to qualify You as a bona fide purchaser of the Title at the Date of Policy.
4. Lack of a right:
a. to any land outside the area specifically described and referred to in Item 3 of Schedule A; and b. in any street, road, avenue, alley, lane, right-of-way, body of water, or waterway that abut the Land.
Exclusion 4 does not modify or limit the coverage provided under Covered Risk 11 or 21.
5. The failure of Your existing structures, or any portion of Your existing structures, to have been constructed before, on, or after the Date of Policy in accordance with applicable building codes. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 14 or 15.
6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights law, that the transfer of the Title to You is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 30.
7. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.
8. Negligence by a person or an entity exercising a right to extract or develop oil, gas, minerals, groundwater, or any other subsurface substance.
9. Any lien on Your Title for real estate taxes or assessments, imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 9 does not modify or limit the coverage provided under Covered Risk 8.a or 27.
10. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.
LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows:
• For Covered Risk 16, 18, 19 and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.
The deductible amounts and maximum dollar limits shown on Schedule A are as follows:
Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 10,000.00
Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 5,000.00
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13)
EXCLUSIONS
In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from:
1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning:
a. building;
b. zoning;
c. land use;
d. improvements on the Land;
e. land division; and
f. environmental protection.
This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27.
2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15.
3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17.
4. Risks:
a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or
d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28.
5. Failure to pay value for Your Title.
6. Lack of a right:
a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land.
This Exclusion does not limit the coverage described in Covered Risk 11 or 21.
7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors’ rights laws.
8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake or subsidence.
9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.
LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows:
• For Covered Risk 16, 18, 19 and 21, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.
The deductible amounts and maximum dollar limits shown on Schedule A are as follows:
Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 10,000.00
Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 5,000.00
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
ALTA OWNER’S POLICY (07-01-2021)
EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:
1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.
Exclusion 1 does not modify or limit the coverage provided under Covered Risk 5 or 6.
2. Any power of eminent domain. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 7.
3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by the Insured Claimant; b. not Known to the Company, not recorded in the Public Records at the Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; c. resulting in no loss or damage to the Insured Claimant; d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 9 or 10); or
e. resulting in loss or damage that would not have been sustained if consideration sufficient to qualify the Insured named in Schedule A as a bona fide purchaser had been given for the Title at the Date of Policy.
4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights law, that the transaction vesting the Title as shown in Schedule A is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 9.b.
5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8.
6. Any lien on the Title for real estate taxes or assessments, imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 6 does not modify or limit the coverage provided under Covered Risk 2.b.
7. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.
EXCEPTIONS FROM COVERAGE
Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This policy treats any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document are excepted from coverage.
This policy does not insure against loss or damage and the Company will not pay costs, attorneys' fees, or expenses resulting from the terms and conditions of any lease or easement identified in Schedule A, and the following matters:
NOTE: The 2021 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed as 1 through 7 below:
1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.
2. Any facts, rights, interests, or claims that are not shown by the Public Records at Date of Policy but that could be (a) ascertained by an inspection of the Land or (b) asserted by persons or parties in possession of the Land.
3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.
4. Any encroachment, encumbrance, violation, variation, easement, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records at Date of Policy.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.
7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
2006 ALTA OWNER’S POLICY (06-17-06)
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:
1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.
2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.
4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is
(a) a fraudulent conveyance or fraudulent transfer; or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.
5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses that arise by reason of:
NOTE: The 2006 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed below as 1 through 7 below:
1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.
2. Any facts, rights, interests, or claims that are not shown by the Public Records at Date of Policy but that could be (a) ascertained by an inspection of the Land, or (b) asserted by persons or parties in possession of the Land.
3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.
4. Any encroachment, encumbrance, violation, variation, easement, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records at Date of Policy.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.]
7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.
Notice of Available Discounts
Notice of Available Discounts Printed: 08.16.24 @ 11:38 AM SCA0003004.doc / Updated: 07.09.24 Page 18 of 18 CA-CW-FXFC-02620.206538-932401761 Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer's right to be charged the filed rate. As such, your transaction may not qualify for the below discounts.
You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative.
These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one-to-four family residential dwelling.
Not all discounts are offered by every FNF Company. The discount will only be applicable to the FNF Company as indicated by the named discount.
FNF Underwritten Title Companies Underwritten by FNF Underwriters CTC - Chicago Title Company CTIC - Chicago Title Insurance Company CLTC - Commonwealth Land Title Company CLTIC - Commonwealth Land Title Insurance Company FNTC - Fidelity National Title Company of California FNTIC - Fidelity National Title Insurance Company FNTCCA - Fidelity National Title Company of California CTIC - Chicago Title Insurance Company TICOR - Ticor Title Company of California
LTC - Lawyer's Title Company
SLTC - ServiceLink Title Company
Available Discounts
DISASTER LOANS (CTIC, CLTIC, FNTIC)
The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within twenty-four (24) months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be fifty percent (50%) of the appropriate title insurance rate.
CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (CTIC, FNTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owner's policy shall be fifty percent (50%) to seventy percent (70%) of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be forty percent (40%) to fifty percent (50%) of the appropriate title insurance rate, depending on the type of coverage selected.
MILITARY DISCOUNT RATE
Upon the Company being advised in writing and prior to the closing of the transaction that an active duty, honorably separated, or retired member of the United States Military or Military Reserves or National Guard is applicable, will be entitled to a discount equal to fifteen percent (15%) of the otherwise applicable rates such party would be charged for the title insurance policies.
Minimum charge: Four Hundred Twenty-Five And No/100 Dollars ($425.00) The Company may require appropriate proof of eligibility from the parties to the transaction verifying they are entitled to the discount as described. No other discounts or special rates, or combination of discounts or special rates, shall be applicable.
Wire Fraud Alert Page 1
Original Effective Date: 5/11/2017
Current Version Date: 5/11/2017 932401761 - WIRE0016 (DSI Rev. 12/07/17) TM and © Fidelity National Financial, Inc. and/or an affiliate. All rights reserved
WIRE FRAUD ALERT
This Notice is not intended to provide legal or professional advice.
If you have any questions, please consult with a lawyer.
All parties to a real estate transaction are targets for wire fraud and many have lost hundreds of thousands of dollars because they simply relied on the wire instructions received via email, without further verification. If funds are to be wired in conjunction with this real estate transaction, we strongly recommend verbal verification of wire instructions through a known, trusted phone number prior to sending funds.
In addition, the following non-exclusive self-protection strategies are recommended to minimize exposure to possible wire fraud.
NEVER RELY on emails purporting to change wire instructions. Parties to a transaction rarely change wire instructions in the course of a transaction.
ALWAYS VERIFY wire instructions, specifically the ABA routing number and account number, by calling the party who sent the instructions to you. DO NOT use the phone number provided in the email containing the instructions, use phone numbers you have called before or can otherwise verify. Obtain the number of relevant parties to the transaction as soon as an escrow account is opened. DO NOT send an email to verify as the email address may be incorrect or the email may be intercepted by the fraudster. USE COMPLEX EMAIL PASSWORDS that employ a combination of mixed case, numbers, and symbols. Make your passwords greater than eight (8) characters. Also, change your password often and do NOT reuse the same password for other online accounts.
USE MULTI-FACTOR AUTHENTICATION for email accounts. Your email provider or IT staff may have specific instructions on how to implement this feature.
For more information on wire-fraud scams or to report an incident, please refer to the following links:
Federal Bureau of Investigation: Internet Crime Complaint Center:
http://www.fbi.gov http://www.ic3.gov
Privacy Statement Printed: 08.16.24 @ 11:39 AM by
SSCORPD0911.doc Page 1 CA-CW-FXFC-02620.206538-932401761
FIDELITY NATIONAL FINANCIAL
CALIFORNIA PRIVACY NOTICE
Fidelity National Financial, Inc. and its majority-owned subsidiary companies (collectively, "FNF," "our," or "we") respect and are committed to protecting your privacy. This California Privacy Notice explains how we collect, use, and disclose Personal Information, when and to whom we disclose such information, and the rights you, as a California resident ("Consumer"), have regarding your Personal Information ("California Privacy Rights"). "Personal Information" means information that identifies, relates to, describes, and is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.
If FNF has collected, used, or disclosed your Personal Information in relation to a job application or employment, independent contractor, officer, owner, or director relationship with FNF, FNF's practices are discussed in our Notice at Collection for Prospective Employees, available at Prospective California Employees.
Some subsidiaries maintain separate California Privacy Notices or privacy statements. If a subsidiary has a separate California Privacy Notice, it will be available on the subsidiary's website, and this California Privacy Notice does not apply.
Collection of categories of Personal Information:
In the preceding twelve (12) months FNF has collected, and will continue to collect, the following categories of Personal Information from you:
Identifiers such as name, address, telephone number, IP address, email address, account name, social security number, driver's license number, state identification card, passport number, financial information, date of birth, or other similar identifiers;
Characteristics of protected classifications under California or Federal law; Commercial information, including records of personal property, products or services purchased, or other purchasing or consuming histories;
Internet or other electronic network activity information including, but not limited to browsing history on FNF websites, and information regarding a Consumer's interaction with an FNF website; Geolocation data;
Unique biometric data used to authenticate a specific individual such as a fingerprint, retina, or iris image; Professional or employment information;
Education Information.
This Personal Information is collected from the following sources:
Information we receive from you on applications or other forms; Information about your transactions with FNF, our affiliates, or others; Information we receive from consumer reporting agencies and/or governmental entities, either directly from these entities, or from internet service providers, data analytics providers, and social networks; Information from the use of our websites and mobile applications; Information we receive directly from you related to doing business with us.
This Personal Information is collected for the following business purposes:
To provide products and services to you or in connection with a transaction involving you; To perform a contract between FNF and the Consumer;
To improve our products and services;
To comply with legal obligations;
To detect and protect against fraudulent or illegal activity; Privacy Statement Printed: 08.16.24 @ 11:39 AM by
SSCORPD0911.doc Page 2 CA-CW-FXFC-02620.206538-932401761 To communicate with you about FNF or our affiliates;
To maintain an account with FNF or our affiliates;
To maintain the security of our systems, tools, accounts, and applications; To verify and authenticate identities and credentials; To provide, support, personalize, and develop our websites, products, and services; To directly market our products to consumers;
As described to you when collecting your Personal Information or as otherwise set forth in the California Consumer Privacy Act.
Disclosures of Personal Information for a business purpose:
In the preceding twelve (12) months FNF has disclosed, and will continue to disclose, the categories of Personal Information listed above for a business purpose. We may disclose Personal Information for a business purpose to the following categories of third parties:
FNF affiliates and subsidiaries;
Non-affiliated third parties, with your prior consent; Businesses in connection with the sale or other disposition of all or part of the FNF business and/or assets;
Service Providers and non-affiliated third parties such as data analytics providers; Law enforcement or authorities in connection with an investigation, or in response to a subpoena or court order.
Sale of Personal Information:
In the preceding twelve (12) months, FNF has not sold or shared Personal Information. FNF does not sell or share Personal Information.
Retention Periods:
Due to the breadth and variety of data collected by FNF, it is not possible for us to provide you with a comprehensive list of timeframes during which we retain each category of Personal Information. FNF retains categories of information as reasonably necessary to satisfy the purpose for which we collect the information. This time period varies depending on the purpose for which we collected the information, the nature and frequency of our interactions and relationship with you, whether we have a legal basis to continue retaining the information, industry practices, the value and sensitivity of the information, and state and federal recordkeeping requirements.
Personal Information of minors:
FNF does not knowingly collect the Personal Information of minors. FNF does not sell or share the information of consumers under sixteen (16) years of age.
Sensitive Personal Information:
FNF does not use or disclose sensitive Personal Information for any purposes other than those specified in the California Consumer Privacy Act.
Right to know:
Consumers have a right to know about Personal Information collected, used, disclosed, shared, or sold, including the categories of such Personal Information, as well as the purpose for such collection, use, disclosure, sharing, or selling, categories of third parties to whom Personal Information is disclosed, shared or sold, and the specific pieces of Personal Information collected about the consumer. Consumers have the right to request FNF disclose what Personal Information it collected, used, and disclosed in the past twelve (12) months.
Privacy Statement Printed: 08.16.24 @ 11:39 AM by
SSCORPD0911.doc Page 3 CA-CW-FXFC-02620.206538-932401761 Right to request deletion:
Consumers have a right to request the deletion of their Personal Information, subject to certain exceptions.
Right to Correct:
Consumers have the right to correct inaccurate Personal Information.
Right to non-discrimination:
Consumers have a right not to be discriminated against because of exercising their consumer privacy rights. We will not discriminate against Consumers for exercising any of their California Privacy Rights.
Privacy Requests:
To exercise any of your California Privacy Rights, or if acting as an authorized agent on behalf of another individual, please visit California Privacy Request , call us Toll Free at 888-413-1748, or write to the address at the end of this notice.
Upon making a California Privacy Request, FNF will verify the consumer's identity by requiring an account, loan, escrow number, or other identifying information from the consumer.
The above-rights are subject to any applicable rights and obligations including both Federal and California exemptions rendering FNF, or Personal Information collected by FNF, exempt from certain CCPA requirements.
A Consumer may use an Authorized Agent to submit any CCPA request. Authorized agents’ requests will be processed like any other CCPA request, but FNF will also require the Consumer provide the agent written permission to make the request and verify his or her identity with FNF.
FNF website services for mortgage loans:
Certain FNF companies provide services to mortgage loan servicers, including hosting websites that collect customer information on behalf of mortgage loan servicers (the "Service Websites"). The Service Websites may contain links to both this Privacy Notice and the mortgage loan servicer or lender's privacy notice. The sections of this Privacy Notice describing the categories, sources, and uses of your Personal Information do not apply to the Service Websites. The mortgage loan servicer or lender's privacy notice governs use, disclosure, and access to your Information. FNF does not share Information collected through the Service Websites, except (1) as required or authorized by contract with the mortgage loan servicer or lender, or (2) as required by law or in the good-faith belief that such disclosure is necessary to comply with a legal process or applicable law, to enforce this Privacy Notice, or to protect the rights, property, or safety of FNF or the public.
California Privacy Notice - Effective Date:
This California Privacy Notice was last updated on July 1, 2024.
Contact for more information:
For questions or concerns about FNF's California Privacy Notice and privacy practices, or to exercise any of your California Privacy Rights, please visit California Privacy, call Toll Free 888-413-1748, or contact us by mail at the below address.
Fidelity National Financial, Inc.
601 Riverside Avenue
Jacksonville, Florida 32204
Attn: Chief Privacy Officer
ATTACHMENT ONE
Attachment One (11/04/22)
CALIFORNIA LAND TITLE ASSOCIATION
STANDARD COVERAGE POLICY - 1990 (11-09-18)
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge.
3. Defects, liens, encumbrances, adverse claims or other matters:
(a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy.
4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated.
5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law.
6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.
EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:
1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.
Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.
2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.
6. Any lien or right to a lien for services, labor or material unless such lien is shown by the public records at Date of Policy.
EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART II
(Variable exceptions such as taxes, easements, CC&R’s, etc., are inserted here )
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
CALIFORNIA LAND TITLE ASSOCIATION
STANDARD COVERAGE OWNER'S POLICY (02-04-22)
EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys’ fees, or expenses that arise by reason of:
1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.
Exclusion 1 does not modify or limit the coverage provided under Covered Risk 5 or 6.
2. Any power of eminent domain. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 7.
3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by the Insured Claimant; b. not Known to the Company, not recorded in the Public Records at the Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; c. resulting in no loss or damage to the Insured Claimant; d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 9 or 10); or
e. resulting in loss or damage that would not have been sustained if consideration sufficient to qualify the Insured named in Schedule A as a bona fide purchaser had been given for the Title at the Date of Policy.
4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights law, that the transaction vesting the Title as shown in Schedule A is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 9.b.
5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8.
6. Any lien on the Title for real estate taxes or assessments imposed or collected by a governmental authority that becomes due and payable after the Date of Policy.
Exclusion 6 does not modify or limit the coverage provided under Covered Risk 2.b. 7 Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.
EXCEPTIONS FROM COVERAGE
Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This policy treats any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document are excepted from coverage.
This policy does not insure against loss or damage and the Company will not pay costs, attorneys’ fees, or expenses resulting from the terms and conditions of any lease or easement identified in Schedule A, and the following matters:
PART I
1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.
2. Any facts, rights, interests, or claims that are not shown by the Public Records at Date of Policy but that could be (a) ascertained by an inspection of the Land, or (b) asserted by persons or parties in possession of the Land.
3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.
4. Any encroachment, encumbrance, violation, variation, easement, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records at Date of Policy.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.
7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.
PART II
(Variable exceptions such as taxes, easements, CC&R’s, etc., are inserted here )
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (7-01-21)
EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy and We will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:
1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, or regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.
Exclusion 1 does not modify or limit the coverage provided under Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23, or 27.
2. Any power to take the Land by condemnation. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 17.
3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by You;
b. not Known to Us, not recorded in the Public Records at the Date of Policy, but Known to You and not disclosed in writing to Us by You prior to the date You became an Insured under this policy;
c. resulting in no loss or damage to You;
d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 5,
8.f., 25, 26, 27, 28, or 32); or
e. resulting in loss or damage that would not have been sustained if You paid consideration sufficient to qualify You as a bona fide purchaser of the Title at the Date of Policy.
4. Lack of a right:
a. to any land outside the area specifically described and referred to in Item 3 of Schedule A; and b. in any street, road, avenue, alley, lane, right-of-way, body of water, or waterway that abut the Land.
Exclusion 4 does not modify or limit the coverage provided under Covered Risk 11 or 21.
5. The failure of Your existing structures, or any portion of Your existing structures, to have been constructed before, on, or after the Date of Policy in accordance with applicable building codes. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 14 or 15.
6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights law, that the transfer of the Title to You is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 30.
7. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.
8. Negligence by a person or an entity exercising a right to extract or develop oil, gas, minerals, groundwater, or any other subsurface substance.
9. Any lien on Your Title for real estate taxes or assessments, imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 9 does not modify or limit the coverage provided under Covered Risk 8.a or 27.
10. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.
LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows:
• For Covered Risk 16, 18, 19 and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.
The deductible amounts and maximum dollar limits shown on Schedule A are as follows:
Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 10,000.00
Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 5,000.00
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13)
EXCLUSIONS
In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from:
1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning:
a. building;
b. zoning;
c. land use;
d. improvements on the Land;
e. land division; and
f. environmental protection.
This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27.
2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15.
3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17.
4. Risks:
a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or
d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28.
5. Failure to pay value for Your Title.
6. Lack of a right:
a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land.
This Exclusion does not limit the coverage described in Covered Risk 11 or 21.
7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors’ rights laws.
8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake or subsidence.
9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.
LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows:
• For Covered Risk 16, 18, 19 and 21, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.
The deductible amounts and maximum dollar limits shown on Schedule A are as follows:
Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 10,000.00
Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 5,000.00
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
ALTA OWNER’S POLICY (07-01-2021)
EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:
1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.
Exclusion 1 does not modify or limit the coverage provided under Covered Risk 5 or 6.
2. Any power of eminent domain. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 7.
3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by the Insured Claimant; b. not Known to the Company, not recorded in the Public Records at the Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; c. resulting in no loss or damage to the Insured Claimant; d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 9 or 10); or
e. resulting in loss or damage that would not have been sustained if consideration sufficient to qualify the Insured named in Schedule A as a bona fide purchaser had been given for the Title at the Date of Policy.
4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights law, that the transaction vesting the Title as shown in Schedule A is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 9.b.
5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8.
6. Any lien on the Title for real estate taxes or assessments, imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 6 does not modify or limit the coverage provided under Covered Risk 2.b.
7. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.
EXCEPTIONS FROM COVERAGE
Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This policy treats any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document are excepted from coverage.
This policy does not insure against loss or damage and the Company will not pay costs, attorneys' fees, or expenses resulting from the terms and conditions of any lease or easement identified in Schedule A, and the following matters:
NOTE: The 2021 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed as 1 through 7 below:
1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.
2. Any facts, rights, interests, or claims that are not shown by the Public Records at Date of Policy but that could be (a) ascertained by an inspection of the Land or (b) asserted by persons or parties in possession of the Land.
3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.
4. Any encroachment, encumbrance, violation, variation, easement, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records at Date of Policy.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.
7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.
ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
2006 ALTA OWNER’S POLICY (06-17-06)
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:
1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.
2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.
4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is
(a) a fraudulent conveyance or fraudulent transfer; or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.
5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses that arise by reason of:
NOTE: The 2006 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed below as 1 through 7 below:
1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.
2. Any facts, rights, interests, or claims that are not shown by the Public Records at Date of Policy but that could be (a) ascertained by an inspection of the Land, or (b) asserted by persons or parties in possession of the Land.
3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.
4. Any encroachment, encumbrance, violation, variation, easement, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records at Date of Policy.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.]
7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.
Notice of Available Discounts
Notice of Available Discounts Printed: 08.16.24 @ 11:39 AM by SCA0001736.doc / Updated: 05.01.24 Page 1 CA-CW-FXFC-02620.206538-932401761 Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer's right to be charged the filed rate. As such, your transaction may not qualify for the below discounts.
You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one-to-four family residential dwelling.
Not all discounts are offered by every FNF Company. The discount will only be applicable to the FNF Company as indicated by the named discount.
FNF Underwritten Title Companies Underwritten by FNF Underwriters CTC - Chicago Title Company CTIC - Chicago Title Insurance Company CLTC - Commonwealth Land Title Company CLTIC - Commonwealth Land Title Insurance Company FNTC - Fidelity National Title Company of California FNTIC - Fidelity National Title Insurance Company FNTCCA - Fidelity National Title Company of California CTIC - Chicago Title Insurance Company TICOR - Ticor Title Company of California
LTC - Lawyer's Title Company
SLTC - ServiceLink Title Company
Available Discounts
DISASTER LOANS (CTIC, CLTIC, FNTIC)
The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within twenty-four (24) months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be fifty percent (50%) of the appropriate title insurance rate.
CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (CTIC, FNTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owner's policy shall be fifty percent (50%) to seventy percent (70%) of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be forty percent (40%) to fifty percent (50%) of the appropriate title insurance rate, depending on the type of coverage selected.
MILITARY DISCOUNT RATE
Upon the Company being advised in writing and prior to the closing of the transaction that an active duty, honorably separated, or retired member of the United States Military or Military Reserves or National Guard is acquiring or selling an owner occupied one-to-four family property, the selling owner or acquiring buyer, as applicable, will be entitled to a discount equal to fifteen percent (15%) of the otherwise applicable rates such party would be charged for title insurance policies.
Minimum charge: Four Hundred Twenty-Five And No/100 Dollars ($425.00) The Company may require appropriate proof of eligibility from the parties to the transaction verifying they are entitled to the discount as described. No other discounts or special rates, or combination of discounts or special rates, shall be applicable.
OWNER'S DECLARATION
Owner's Declaration Printed: 08.16.24 @ 11:39 AM by
SCA0002873.doc / Updated: 07.18.24 Page 1 CA-CW-FXFC-02620.206538-932401761 Escrow No.: 932401761
Property: APN/Parcel ID(s) 117-250-029
The undersigned hereby declares as follows:
1. (Fill in the applicable paragraph and strike the other) A. Declarant ("Owner") is the owner or lessee, as the case may be, of certain premises located at APN/Parcel ID(s) 117-250-029, further described as follows: See Preliminary Report/Commitment No. 932401761 for full legal description (the "Land").
B. Declarant is the __________________________ of ________________________________ ("Owner"), which is the owner or lessee, as the case may be, of certain premises located at APN/Parcel ID(s) 117-250-029, further described as follows: See Preliminary Report/Commitment No. 932401761 for full legal description (the "Land").
2. (Fill in the applicable paragraph and strike the other) A. During the period of six (6) months immediately preceding the date of this declaration no work has been done, no surveys or architectural or engineering plans have been prepared, and no materials have been furnished in connection with the erection, equipment, repair, protection or removal of any building or other structure on the Land or in connection with the improvement of the Land in any manner whatsoever.
B. During the period of six (6) months immediately preceding the date of this declaration certain work has been done and materials furnished in connection with _________________________ upon the Land in the approximate total sum of $____________________, but no work whatsoever remains to be done and no materials remain to be furnished to complete the construction in full compliance with the plans and specifications, nor are there any unpaid bills incurred for labor and materials used in making such improvements or repairs upon the Land, or for the services of architects, surveyors or engineers, except as follows: ________________________________________. Owner, by the undersigned Declarant, agrees to and does hereby indemnify and hold harmless Commonwealth Land Title Insurance Company against any and all claims arising therefrom.
3. Owner has not previously conveyed the Land; is not a debtor in bankruptcy (and if a partnership, the general partner thereof is not a debtor in bankruptcy); and has not received notice of any pending court action affecting the title to the Land.
4. Except as shown in the above referenced Preliminary Report/Commitment, there are no unpaid or unsatisfied mortgages, deeds of trust, Uniform Commercial Code financing statements, regular assessments, special assessments, periodic assessments or any assessment from any source, claims of lien, special assessments, or taxes that constitute a lien against the Land or that affect the Land but have not been recorded in the public records. There are no violations of the covenants, conditions and restrictions as shown in the above referenced Preliminary Report/Commitment.
5. The Land is currently in use as ______________________________; ______________________________ occupy/occupies the Land; and the following are all of the leases or other occupancy rights affecting the Land:
6. There are no other persons or entities that assert an ownership interest in the Land, nor are there unrecorded easements, claims of easement, or boundary disputes that affect the Land.
7. There are no outstanding options to purchase or rights of first refusal affecting the Land.
8. Between the most recent Effective Date of the above referenced Preliminary Report/Commitment and the date of recording of the Insured Instrument(s), Owner has not taken or allowed, and will not take or allow, any action or inaction to encumber or otherwise affect title to the Land.
OWNER'S DECLARATION
(continued)
Owner's Declaration Printed: 08.16.24 @ 11:39 AM by
SCA0002873.doc / Updated: 07.18.24 Page 2 CA-CW-FXFC-02620.206538-932401761
9. That the undersigned has not received any written notice of violation of any covenants, conditions or restrictions, if any, affecting the Land.
10. That there are no outstanding unpaid sellers or suppliers of PACA/PASA commodities or products incurred by the Lessee, except:
11. That no notices of claim or notices of intent to preserve claim rights have been received by the Company from PACA/PASA sellers or suppliers of the Lessee, except:
This declaration is made with the intention that Commonwealth Land Title Insurance Company (the "Company") and its policy issuing agents will rely upon it in issuing their title insurance policies and endorsements. Owner, by the undersigned Declarant, agrees to indemnify the Company against loss or damage (including attorneys' fees, expenses, and costs) incurred by the Company as a result of any untrue statement made herein. Additionally, Owner, by the undersigned Declarant, agrees to indemnify and hold the Company harmless during the gap period between the last title examination of the Land that was conducted by, for and/or on behalf of the Company, and the time when the deed, assignments and any other documents creating priority of title are recorded in connection with the sale and/or transfer of the Land.
I declare under penalty of perjury that the foregoing is true and correct and that this declaration was executed on August 16, 2024 at 11:39 AM.
Signature Date
Print Name
Signature Date
Print Name
Exhibit Page for Plat Image Printed: 08.16.24 @ 11:39 AM by SCA0002944.doc / Updated: 03.06.23 Page 1 CA-CW-FXFC-02620.206538-932401761
Southern California Gas Company Project
KM Job AC24-471
KIDDER MATHEWS Addenda
Valuation Advisory Services
Comparable Sale Summaries
2770 Industrial Pky
Comparable 1
Sale Information
Buyer SM1 Holdings, Inc.
Seller Questa Industrial Properties LLC
Sale Date 4/25/2024
Transaction Status Recorded
Sale Price $1,050,000 $96,330 /AC
Analysis Price $1,050,000 $96,330 /AC
Recording Number 0012220
Rights Transferred Fee Simple
Financing Conventional Loan
Conditions of Sale None
Property
Land Area 10.9 Acres (474,804 SF)
Number of Parcels 1
Zoning PD/M-1 & OS
Shape Irregular
Topography Level
Corner No
2770 Industrial Pky
Santa Maria, CA 93455
County
Santa Barbara
Submarket
North SB County
APN
111-291-033
Remarks
The 10.90-acre parcel located at 2770 Industrial Pky in Santa Maria sold on April 25, 2024 for $1,050,000 or $96,330/Acre. The property has an irregular shape and is located in multiple zoning districts. An approximate 2.75-acre portion of the parcel located on its north end is located in the Planned Development/Light Manufacturing zoning district, which allows for a variety of industrial uses. The remaining 8.15-acres consists of a long, narrow strip of land that is zoned open space and is partially improved with a bike line.
According to Santa Maria's Planning Division, an application was submitted for an industrial use on the north end of the property but no entitlement have been granted yet.
The Richmond Ranch
Comparable 2
Sale Information
Buyer The Conservation Fund
Seller Z&L Properties
Sale Date 1/24/2024
Transaction Status Recorded
Sale Price $16,000,000 $4,379 /AC
Analysis Price $16,000,000 $4,379 /AC
Recording Number N/Av
Rights Transferred Fee Simple
Financing N/Av
Conditions of Sale None
Property
Land Area 3,654 Acres (159,168,240 SF)
Number of Parcels 1
Zoning AR
Shape Irregular
Topography Hilly
7500 San Felipe Rd
San Jose, CA 95135
County
Santa Clara
Submarket
Outlying Santa Clara Cnty
APN
627-11-005, 660-01-002, -013,
-014, -47-001, -50-001, -51-001,
-55-002, -58-004 & 678-01-001
Confirmation
Name David Wientjes
Company Kidder Mathews
Phone Number 415.306.7269
Affiliation Listing Broker
Remarks
Richmond Ranch, a 3,654-acre property near San Jose, California, sold to The Conservation Fund (TCF), a nonprofit organization on January 24, 2024.
Z&L Properties, a China-based investor and developer of residential properties, sold the property for $16 million or $4,379 per acre. The property is along Coyote Ridge and home to several endangered and threatened species, including puma, American badger, Tule elk, bobcat, gray fox and coyote. Per the TCF, protecting Richmond Ranch enhances wildlife habitat conservation, connectivity and public recreation. To assist with Richmond Ranch’s conservation, Z&L Properties sold the land at a discount of the appraisal value of $35 million. The property has been a working cattle ranch for nearly 100 years and more recently a family retreat for the seller. The Richmond Ranch has three living areas, including several ranch houses, one dating back to the 1880s, a barn, stable and other outbuildings along with natural springs and a creek. The majority of the property is located in Santa Clara County and zoned Agricultural Ranchlands which is intended to preserve ranching, the natural resources, and the rural character of the areas to which it applies. Several parcels are located in the city of San Jose. Details of the transactions were confirmed by the listing broker, David Wientjes with Kidder Mathews (415.306.7269). According to Mr. Wientjes, all of the parcels are subject to open space restrictions and the seller decided to sell the property because they could not develop any of the parcels. He also indicated the improvements had little impact on the sale price due to the intention for conservation of the land.
Camp Pico Blanco
Comparable 3
Sale Information
Buyer White Stag Leadership Development
Academy
Seller Silicon Valley Monterey Bay Council
Sale Date 11/3/2023
Transaction Status Recorded
Sale Price $2,100,000 $5,707 /AC
Analysis Price $2,100,000 $5,707 /AC
Recording Number 000000038945
Rights Transferred Fee Simple
Financing N/Av
Conditions of Sale None
Property
Land Area 368 Acres (16,030,080 SF)
Number of Parcels 1
Zoning WSC/40-D(CZ)
Shape Irregular
Topography Hilly
41352 Palo Colorado Rd
Carmel, CA 93923
County
Monterey
Submarket
North Monterey County
APN
418-181-022-000
Remarks
A 368-acre portion of Camp Pico Blanco sold to the White Stag Leadership Development Academy, which is related to the Esselen Tribe of Monterey County, on November 3, 2023 for $2,100,000 or $5,707 per acre. The property was previously owned by an entity related to the Boy Scouts.
Located off Palo Colorado Road, about 10 miles inland from Highway 1, the camp was closed following the Soberanes Fire in 2017, and remained closed after Palo Colorado Road was severely damaged the following winter.
Recorded in the grant deed is a restriction that limits future use of the property for a youth camp. The land is located in an ecologically diverse and sensitive environment containing a number of unique animal and plant species. The sale included several camp related structures from the prior owner. Details of the transaction were confirmed through public records and articles.
Hollister Ranch
Comparable 4
Sale Information
Buyer Mark and John Goerner
Seller Steven W and David C Hollister
Sale Date 2/16/2022
Transaction Status Recorded
Sale Price $3,400,000 $4,597 /AC
Analysis Price $3,400,000 $4,597 /AC
Recording Number 2022-0008739
Rights Transferred Fee Simple
Financing N/Av
Conditions of Sale None
Property
Land Area 739.57 Acres (32,215,669 SF)
Number of Parcels 2
Zoning AG-II-100
Shape Irregular
Topography Hilly
3725 San Miguelito Road
Lompoc, CA 93436
County
Santa Barbara
APN
083-080-003, 083-080-001
Confirmation
Name Larry Lahr
Company Rincon Corporation
Phone Number 805.937.2492
Affiliation Listing Agent
Remarks
The 739.57-acre property known as Hollister Ranch, located at 3725 San Miguelito Road in Lompoc, sold on February 18, 2022 for $3,400,000 or $4,597 per acre. The site is located about three miles south of downtown Lompoc. It is improved with several minor structures including a 2,060 SF residence and 2,000 SF barn. The land is zoned AG-II-100 by the County of Santa Barbara and it is also enrolled in the Williamson Act as "Nonprime Agriculture Land" which restricts further development of the property. The land has level to rolling hill topography. Historically it has been used as a rural residence and cattle-grazing ranch. Water is provided by a municipal (city of Lompoc) owned and operated spring located adjacent to the Property that provides both domestic and stock water at no cost. Details of the transaction were confirmed with the listing agent, Larry Lahr with the Rincon Corporation (805.937.2492). According to Mr. Lahr, the buyer intended to use for a family compound and keep the site enrolled in the Williamson Act.
Cojo Jalama Ranches
Comparable 5
Sale Information
Buyer The Nature Conservancy
Seller The Baupost Group
Sale Date 12/21/2017
Transaction Status Recorded
Sale Price $165,000,000 $6,772 /AC
Analysis Price $165,000,000 $6,772 /AC
Recording Number N/Av
Rights Transferred Fee Simple
Financing All Cash
Conditions of Sale None
Property
Land Area 24,364 Acres (1,061,295,840 SF)
Number of Parcels 1
Zoning AG-II-320
Shape Irregular
Topography Hilly
N/A
Unincorporated, CA 93436
County
Santa Barbara
APN
Various
Remarks
The Nature Conservancy (TNC) purchased the Cojo Jalama Ranches, also known as the Bixby Ranch, in December 2017 for $165 million. The 24,364- acre property in Santa Barbara County, California includes eight miles of undeveloped coastline, two cattle ranches, and wildlife corridors. It's also home to endangered species like the snowy plover, red-legged frog, and Western monarch butterfly. The purchase was made possible by a $165 million donation from Jack and Laura Dangermond, and the property is now called the Jack and Laura Dangermond Preserve. Due to its proximity to the Vandenburg Air Force Base (now Vandenburg Space Force Base) and the risk of a failed rocket launch, there was an easement that restricted development of the property, in addition to the restrictions placed on the property by the California Coastal Commission and the Santa Barbara Board of Supervisors.
Details of the transaction were confirmed through public records and articles.
Southern California Gas Company Project
KM Job AC24-471
KIDDER MATHEWS Addenda
Valuation Advisory Services
Qualifications of Appraiser
MATTHEW
VA NECK, MAI
Senior Vice President
SELECT CLIENT LIST
99 Cents Only Stores
Ajalat, Polley, Ayoob,
Matarese & Broege
Ayres Hotels
Care Trust REIT
City of Commerce
County of Orange
Dutch Bros. Coffee
Fidelity National
Financial, Inc.
Garrett & Tully
HDR
Jeffer Mangels
KIPP Los Angeles
College Preparatory
Latham & Watkins
Los Angeles County
Sanitation District
Los Angeles Unified
School District
McCarthy Cook
Simon Property Group
Southern California Gas
Company
Stifel, Nicolaus &
Company, Inc
Matthew VanEck is a senior vice president with
Kidder Mathews Valuation & Advisory Services in the
Irvine office.
He has been active in real estate appraisal and consulting since 2005 and has performed appraisal assignments in more than 30 states and the District of Columbia.
Mr. VanEck’s appraisal experience consists of valuing traditional operating properties (retail, office and industrial), as well as specialty properties including studios, schools, right-of-ways, utility easements, conservation easements and land developments. He has performed assignments for tax reporting, financing, property tax appeals, eminent domain, litigation support and financial accounting purposes. He has also been designated as an expert in real estate valuation issues and has testified in court and in mediation hearings.
EDUCATION
BA in Economics from University of Southern California
PROFESSIONAL LICENSE
Licensed, California Certified General Real Estate Appraiser (No. AG 042827)
PROFESSIONAL MEMBERSHIPS & ACCREDITATIONS
Designated Member of Appraisal Institute (MAI)
Member, International Right of Way Association — Orange County Chapter 67 President, International Right of Way Association — Orange County Chapter 67 (2023-2024)
Member, Board of Directors of the Southern California Chapter of the Appraisal Institute (2016-2020)
Board Chairperson, Orange County Head Start (2016)
T 949.557.5047
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KIDDER.COM
KIDDER MATHEWS 5 PARK PLAZA, SUITE 1700, IRVINE, CA 92614 Valuation Advisory Services
SAMPLE SPECIALIZED APPRAISAL EXPERIENCE
Valued Universal Studios complex comprising more than 350 acres along US Highway 101 in Studio City area of Los Angeles, California. The property included over 7 million square feet of improvements including offices, studios, the CityWalk retail complex, Universal Studios theme park, and parking garages with a capacity of more than 10,000 cars.
Valued parcels in Century City for a taking for the MTA Purple Line extension. The properties included an improved commercial site and last remaining underdeveloped sites in Century City. The takings analyzed include permanent surface, tunnel and temporary construction easements.
Valued a 2,500 mile railroad (Dakota, Minnesota & Eastern) which is located in Illinois, Wisconsin, Minnesota, North Dakota, South Dakota, Iowa, Wyoming, Missouri, and Nebraska. The valuation was completed for a FIRPTA Analysis for a sale to a foreign company.
QUALIFIED AS AN EXPERT IN THE FOLLOWING VENUES
Superior Court of the State of California, County of Orange JAMS Orange and Century City, California
County Board of Assessment Appeals - Los Angeles and Alameda Counties
SPEAKING ENGAGEMENTS
International Right of Way Annual Education Conference, Long Beach, CA. “Setting the Stage: Best Practices for Acquisition Appraisals”, June 2024
International Right of Way Association Chapter 11 Symposium, San Diego, CA. “Best Practices for Acquisition Appraisals”, November 2023.
Valcre: Opinions of Value Podcast, “Tech Innovations in Eminent Domain”, July 2023.
International Right of Way Association Chapter 67 2019 Summer Seminar, Santa Ana, CA. “Understanding the Appraisal Process”, July 2019.
Institute For Professionals in Taxation 2013 Property Tax Symposium, Indian Wells, CA. “Valuation and Assessment Issues With Leaseholds”, November 2013.
PUBLICATIONS
Valuation Alert “Lack of Perpetual Protection Perpetuates IRS Victories,” January 2012 Valuation Alert “Simmons Appeal. Taxpayer Position Sustained,” June 2011 Valuation Alert “A Mortgage Invalidates a Façade Easement . . . Again!” April 2011 Valuation Alert “A Valuation Victory for the IRS,” January, 2011 Valuation Alert “An Easy Easement Win for the IRS?” September. 2010 Valuation Alert “Can a Mortgage Invalidate a Façade Easement Deduction?” April 2010 CCIM Magazine, “Cap Rate Calculations: How do investors determine ROI in an unsteady market?” September/ October 2009
KIDDER.COM
KIDDER MATHEWS 5 PARK PLAZA, SUITE 1700, IRVINE, CA 92614 Matthew VanEck, MAI