Agenda — Santa Maria City Council, April 15, 2025 (part 2 of 2)

The Blosser Southwest Specific Plan is delineated with boundaries of Blosser Road to the east, La Brea Avenue to the north, A Street to the west, and Carmen Lane to the south. The entire area consists predominately of residential uses of varying density, with higher densities found near Blosser Road. A more detailed legal and physical description of the subject property is contained within the attached report.

The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, and applicable state appraisal regulations.

Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis that were used to develop the opinion of value.

Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, the concluded opinion of value is as follows:

Value Conclusion
Value Type & Appraisal Premise Interest Appraised Date of Value V alue Conclusion
(per SF)
Market Value Fee Simple February 5, 2025 $9.20

Extraordinary Assumptions and Hypothetical Conditions
(None)

1. At our client’s request, and in conjunction with the agreed upon scope of work, we are appraising a hypothetical re side nt ial prope rt y that will se rve as the basis for a conclude d land value . This hypot he tical vacant parce l is non-specific and is located in the area of the Blosser Southwest Specific Plan. The hypothetical property contains five acres and can be developed with a density of eight units per acre. The concluded value is based on this hypothetical parcel and expressed as a value per square foot to be applied as necessary by the client.

The use of any extraordi nary assumpti on or hypotheti cal condi ti on may have affected the assi gnment resul ts.

The value conclusions are based on the following 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.

The val ue concl usi ons are subject to the fol l owi ng extraordi nary assumpti ons. An extraordi nary assumpti on i s an assignm e nt-spe cific assum pt ion as of the e ffe ctive date re garding unce rtain inform at ion use d in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.

Dennis Smitherman
City of Santa Maria
February 19, 2025

Page 3 ends

Respectfully submitted,
Integra Realty Resources - Los Angeles

Sara Gilbertson, MAI
Certified General Real Estate Appraiser
#3002204
Telephone: 916.435.3883, ext. 248
Email: [email protected]
Eric Segal, MAI
Certified General Real Estate Appraiser
#AG026558
Telephone: 213.984.4425
Email: [email protected]

Table of Contents
Residential Development Property - Quimby Act
Executive Summary 1
Identification of the Appraisal Problem 2
Subject Description 2
Sale History 2
Appraisal Purpose 2
Value Type Definitions 2
Property Rights Definitions 3
Client and Intended User(s) 3
Intended Use 3
Applicable Requirements 3
Report Format 3
Prior Services 4
Appraiser Competency 4
Scope of Work 5
Economic Analysis 7
Area Analysis – Santa Barbara County 7
Santa Barbara County Area Analysis 7
Surrounding Area Analysis 15
Residential Market Analysis 18
Property Analysis 26
Land Description and Analysis 26
Real Estate Taxes 34
Highest and Best Use 35
Valuation 37
Valuation Methodology 37
Sales Comparison Approach 38
Analysis and Adjustment of Sales 42
Property Adjustments 43
Value Indication 46
Conclusion of Value 47
Exposure Time 47
Marketing Period 47
Certification 48
Assumptions and Limiting Conditions 50
Addenda
A. Appraiser Qualifications
B. IRR Quality Assurance Survey
C. Comparable Data

Executive Summary 1
Residential Development Property - Quimby Act
Executive Summary
Property Name
Addres s
Property Type
Tax ID
Land Area 5.00 acres; 217,800 SF
Zoning Designation
Highest and Best Use
Exposure Time; Marketing Period 12 months; 12 months
Date of the Report February 19, 2025
Blosser Southwest Specic Plan Area
Residential Development Property - Quimby Act
Blosser Southwest Specific Plan Area
Santa Maria, Santa Barbara County, California 93458
Land
The values reported above are subject to the definitions, assumptions, and limiting conditions set forth in the accompanying re port of which this summary is a part. No party other than City of Santa Maria may use or rely on the information, opinions, and conclusions contai ned in the report.

It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions, and limi ting conditions contained therein.

R-2, Medium-Density Residential
Residential development

Land Value Conclusion per Square Foot
Indicated Value $2,000,000
Land Area (SF) 217,800
Indicated Value per SF $9.18
Rounded $9.20

Extraordinary Assumptions and Hypothetical Conditions
(None)

1. At our client’s request, and in conjunction with the agreed upon scope of work, we are appraising a hypothetical residential property that will serve as the basis for a concluded land value. This hypothetical vacant parcel is non-specific and is located in the area of the Blosser Southwest Specific Plan. The hypothetical property contains five acres and can be developed with a density of eight units per acre. The concluded value is based on this hypothetical parcel and expressed as a value per square foot to be applied as necessary by the client.

The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.

The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.

Subject Description 2
Residential Development Property - Quimby Act
Identification of the Appraisal Problem
Subject Description
The value conclusion in this report, which is for the purpose of determining development fees, such as Quimby Act fees, is predicated upon a hypothetical parcel of vacant residential land and is concluded on a per square foot basis. The subject parcel is therefore a hypothetical parcel located within the Blosser Southwest Specific Plan area of Santa Maria and is comprised of five acres, which is representative of a typical development site in the area. Based upon the agreed-upon scope of work in this analysis, the density of this hypothetical parcel is eight units per acre.

Property Identification
Property Name Residential Development Property - Quimby Act Addres s Bl os ser Southwes t Speci fi c Pl an Area
Santa Maria, California 93458
Tax ID Blosser Southwest Specic Plan Area

Sale History
The subject property is a hypothetical vacant land site within the Blosser Southwest Specific Plan area.

Considering the fact that the subject property is a hypothetical, non-specific parcel, an analysis of owners and sale history (along with an analysis of pending transactions) is not applicable.

Appraisal Purpose
The purpose of the appraisal is to develop the following opinion(s) of value:
 The market value, pertaining to the fee simple interest of a hypothetical residentially-zoned property in the Blosser Southwest Specific Plan area of Santa Maria, as of the effective date of the appraisal, February 5, 2025.

The date of the report is February 19, 2025. The appraisal is valid only as of the stated effective date or dates.

Value Type Definitions
The definitions of the value types applicable to this assignment are summarized below.

Market Value
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and Property Rights Definitions 3
Residential Development Property - Quimby Act
assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated;

2. Both parties are well informed or well advised, and acting in what they consider their own best interests;

3. A reasonable time is allowed for exposure in the open market;

4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 Property Rights Definitions
The property rights appraised which are applicable to this assignment are defined as follows.

Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. 2 Client and Intended User(s)
The client and intended user is the City of Santa Maria. No other party or parties may use or rely on the information, opinions, and conclusions contained in this report.

Intended Use
The intended use of the appraisal is to assist the City of Santa Maria in establishing in-lieu fees for recreation and park purposes, in accordance with the Quimby Act established by the State of California. The appraisal is not intended for any other use.

Applicable Requirements
This appraisal report conforms to the following requirements and regulations:
 Uniform Standards of Professional Appraisal Practice (USPAP);  Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute;  Applicable state appraisal regulations.

Report Format
Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an

1 Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472 2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022)

Prior Services 4
Residential Development Property - Quimby Act
Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis used to develop the opinion of value.

Prior Services
USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment.

Appraiser Competency
No steps were necessary to meet the competency provisions established under USPAP. The assignment participants have appraised several properties similar to the subject in physical, locational, and economic characteristics, and are familiar with market conditions and trends; therefore, appraiser competency provisions are satisfied for this assignment. Appraiser qualifications and state credentials are included in the addenda of this report.

Appraiser Competency 5
Residential Development Property - Quimby Act
Scope of Work
Introduction
The appraisal development and reporting processes require gathering and analyzing information about the assignment elements necessary to properly identify the appraisal problem. The scope of work decision includes the research and analyses necessary to develop credible assignment results, given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed.

To determine the appropriate scope of work for the assignment, the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors were considered. The concluded scope of work is described below.

Research and Analysis
The type and extent of the research and analysis conducted are detailed in individual sections of the report. The steps taken to verify comparable data are disclosed in the addenda of this report.

Although effort has been made to confirm the arms-length nature of each sale with a party to the transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable.

Subject Property Data Sources
The legal and physical features of the subject property, including size of the site and improvements, flood plain data, seismic zone designation, property zoning, existing easements and encumbrances, access and exposure, and condition of the improvements (as applicable) were confirmed and analyzed.

Inspection
Details regarding the property inspection conducted as part of this appraisal assignment are summarized as follows:

Property Inspection
Party Inspection Type Inspection Date
Sara Gilbertson, MAI None N/A
Eric Segal, MAI On-site February 5, 2025

Valuation Methodology
Three approaches to value are typically considered when developing a market value opinion for real property. These are the cost approach, the sales comparison approach, and the income capitalization approach. Use of the approaches in this assignment is summarized as follows:

Appraiser Competency 6
Residential Development Property - Quimby Act
Approaches to Value
A pproach A pplicability to Subject Use in A ssignme nt Cost A pproach Not A pplicable Not Utilized
Sales Comparison A pproach A pplicable Utilized
Income Capitalization Approach Not Applicable Not Utilized

In developing an opinion of value for the subject, only the sales comparison approach is used. This approach is applicable to the subject because there is an active market for similar properties, and sufficient sales data is available for analysis. For this analysis, we use price per unit as the appropriate units of comparison because market participants typically compare sale prices and property values of residential land on this basis, particularly when analyzing a site with a specific development density.

After concluding a value based on a price per unit, the conclusion will be converted to a value per square foot for reporting purposes.

The cost approach is not applicable because there are no improvements that contribute value to the property, and the income approach is not applicable because the subject is not likely to generate rental income in its current state.

Area Analysis – Santa Barbara County 7
Residential Development Property - Quimby Act
Economic Analysis
Area Analysis – Santa Barbara County
Santa Barbara County Area Analysis
Santa Barbara County is located in southern California along the coast of the Pacific Ocean. The city of Santa Barbara is located about 95 miles northwest of Los Angeles and about 325 miles southeast of San Francisco. The county has a mountainous interior abutting several coastal plains on the west and south coasts of the county. It is 2,735 square miles in size and has a population density of 161 persons per square mile.

The largest concentration of population is on the southern coastal plain, referred to as the “south coast” – meaning the part of the county south of the Santa Ynez Mountains. This region includes the cities of Santa Barbara, Goleta and Carpinteria, as well as the unincorporated areas of Hope Ranch, Summerland, Mission Canyon, Montecito and Isla Vista. North of the mountains are the towns of Santa Ynez, Solvang, Buellton and Lompoc; the unincorporated towns of Los Olivos and Ballard; the unincorporated areas of Mission Hills and Vandenberg Village; and Vandenberg Air Force Base. North of the Santa Ynez Valley are the cities of Santa Maria and Guadalupe, and the unincorporated towns of Orcutt, Los Alamos, Casmalia, Garey and Sisquoc. In the extreme northeastern portion of the county are the small communities of New Cuyama, Cuyama and Ventucopa.

Population
Santa Barbara County has an estimated 2025 population of 439,897, which represents an average annual 0.4% decrease from the 2020 census of 448,229. Santa Barbara County lost an average of 1,666 residents per year over the 2020-2025 period, and its downward trend in population parallels the State of California which had a 0.3% average annual decrease in population over this time.

Looking forward, Santa Barbara County's population is projected to decrease at a 0.1% annual rate from 2025-2030, equivalent to the loss of an average of 415 residents per year. Santa Barbara County's decline in population is expected to parallel that of California.

Employment
Total employment in Santa Barbara County was estimated at 222,411 jobs as of June 2024. Between year-end 2014 and 2024, employment rose by 35,842 jobs, equivalent to a 19.2% increase over the

Santa Barbara County Area Analysis 8
Residential Development Property - Quimby Act
entire period. There were gains in employment in seven out of the past ten years. Consistent with national trends, there were losses in 2020, with the onset of the COVID-19 pandemic, followed by a return to positive growth in 2021. Santa Barbara County's rate of employment growth over the last decade surpassed that of California, which experienced an increase in employment of 13.1% or 2,103,735 jobs over this period.

A comparison of unemployment rates is another way of gauging an area’s economic health. Over the past decade, the Santa Barbara County unemployment rate has been consistently lower than that of California, with an average unemployment rate of 5.0% in comparison to a 5.9% rate for California. A lower unemployment rate is a positive indicator.

Recent data shows that the Santa Barbara County unemployment rate is 4.5% in comparison to a 5.2% rate for California, a positive sign that is consistent with the fact that Santa Barbara County has outperformed California in the rate of job growth over the past two years.

Employment Sectors
The composition of the Santa Barbara County job market is depicted in the following chart, along with that of California. Total employment for both areas is broken down by major employment sector, and the sectors are ranked from largest to smallest based on the percentage of Santa Barbara County jobs in each category.

Santa Barbara County Area Analysis 9
Residential Development Property - Quimby Act

Santa Barbara County has greater concentrations than California in the following employment sectors:

1. Natural Resources & Mining, representing 16.3% of Santa Barbara County payroll employment compared to 2.6% for California as a whole. Agriculture, mining, quarrying, and oil and gas extraction are included in this sector.

2. Government, representing 16.2% of Santa Barb ara County payroll employment compared to

14.7% for California as a whole. This sector incl udes employment in local, state, and federal government agencies.

3. Leisure and Hospitality, representing 13.0% of Santa Barbara County payroll employment compared to 11.2% for California as a whole. This sector includes employment in hotels, restaurants, recreation facilities, and arts and cultural institutions.

Santa Barbara County is underrepresented in the following sectors:

1. Education and Health Services, representing 13.9% of Santa Barbara County payroll employment compared to 17.2% for California as a whole. This sector includes employment in public and private schools, colleges, hospitals, and social service agencies.

Employment Sectors - 2024

16.3%

16.2%

13.9%

13.0%

11.8%

10.6%

5.7%

4.6%

3.1%

1.7%

2.6%

14.7%

17.2%

11.2%

16.6%

15.2%

6.9%

5.1%

4.4%

3.2%

2.9%
0% 5% 10% 15% 20%
Natural Resources & Mining
Government
Education and Health Services
Leisure and Hospitality
Trade; Transportation; and Utilities
Professional and Business Services
Manufacturing
Construction
Financial Activities
Other Services
Information
Santa Barbara County California
Source: U.S. Bureau of Labor Statistics and Moody's Analytics

Santa Barbara County Area Analysis 10
Residential Development Property - Quimby Act

2. Trade; Transportation; and Utilities, representing 11.8% of Santa Barbara County payroll employment compared to 16.6% for California as a whole. This sector includes jobs in retail trade, wholesale trade, trucking, warehousing, and electric, gas, and water utilities.

3. Professional and Business Services, represen ting 10.6% of Santa Barbara County payroll employment compared to 15.2% for California as a whole. This sector includes legal, accounting, and engineering firms, as well as management of holding companies.

4. Manufacturing, representing 5.7% of Santa Barbara County payroll employment compared to 6 . 9 % f o r C a l i f o r n i a a s a w h o l e . T h i s s e c t o r includes all establishments engaged in the manufacturing of durable and nondurable goods.

Major Employers
Major employers in Santa Barbara County are shown in the following table. This data does not include the County of Santa Barbara and school districts, which are also major employers.

Gross Domestic Product
Gross Domestic Product (GDP) is a measure of economic activity based on the total value of goods and services produced in a defined geographic area, and annual changes in Gross Domestic Product (GDP) are a gauge of economic growth.

Economic growth, as measured by annual changes in GDP, has been somewhat lower in Santa Barbara County than California overall during the past decade. Santa Barbara County has grown at a 2.7% average annual rate while the State of California has grown at a 3.3% rate. Santa Barbara County continues to underperform California. GDP for Santa Barbara County rose by 1.1% in 2023 while California's GDP rose by 2.0%.

Santa Barbara County has a per capita GDP of $72,513, which is 13% less than California's GDP of $83,373. This means that Santa Barbara County industries and employers are adding relatively less value to the economy than their counterparts in California.

Santa Barbara County Area Analysis 11
Residential Development Property - Quimby Act

Household Income
Santa Barbara County has a lower level of household income than California. Median household income for Santa Barbara County is $91,090, which is 3.9% less than the corresponding figure for California.

The following chart shows the distribution of households across twelve income levels. Santa Barbara County has a greater concentration of households in the lower income levels than California.

Specifically, 28% of Santa Barbara County households are below the $50,000 level in household income as compared to 27% of California households. A lesser concentration of households is apparent in the middle income levels, as 42% of Santa Barbara County households are between the $50,000 - $150,000 levels in household income versus 43% of California households.

Santa Barbara County Area Analysis 12
Residential Development Property - Quimby Act

Education and Age
Residents of Santa Barbara County have a similar level of educational attainment to those of California. An estimated 37% of Santa Barbara County residents are college graduates with four-year degrees, which is the same percentage as California residents. People in Santa Barbara County are younger than their California counterparts. The median age for Santa Barbara County is 35 years, while the median age for California is 39 years.

Household Income Distribution - 2025

7.6%

5.5%

5.7%

8.5%

13.3%

11.7%

9.9%

7.8%

10.5%

5.4%

7.7%

6.3%

8.2%

5.1%

9.8%

14.1%

11.4%

8.9%

7.7%

10.4%

5.2%

8.1%

5.9%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%
Less than $15,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 - 499,999
$500,000 and more
Santa Barbara County California
Source: Claritas

Santa Barbara County Area Analysis 13
Residential Development Property - Quimby Act
Transportation
State Highway 101 is the main transportation route in the region, traveling north-south and connecting the cities of Carpinteria, Santa Barbara and Santa Maria. Highway 101 continues south of the county, providing access to Ventura County and Los Angeles. To the north of the county, this highway continues to San Luis Obispo, Paso Robles, the Salinas/Monterey area, San Francisco and beyond. Highway 1 is another north-south route in the county, located closer to the Pacific coast.

Santa Barbara County is served by Amtrak trains and Greyhound Lines buses. Local bus transportation in the southern portion of the county is provided by the Santa Barbara Metropolitan Transit District (MTD). In the north part of the county, the cities of Lompoc, Santa Maria and Buellton/Solvang have their own bus services.

Commercial airports in the region include Santa Barbara Airport near Goleta, just west of Santa Barbara, and Santa Maria Public Airport. The Santa Barbara Airport is served by Southwest, United and Alaska Airlines, offering daily flights to and from several destinations, including San Francisco, Oakland, Sacramento, Los Angeles, Phoenix, Seattle, Las Vegas, Denver, Atlanta and Salt Lake City. The nearest international airport is LAX in Los Angeles, located about 95 miles southeast of the city of Santa Barbara.

Recreation & Culture
Santa Barbara County contains numerous public parks, beaches, hiking trails, campgrounds, golf courses and other recreational attractions. Numerous wineries, museums and historic missions are located throughout the region. The Cachuma Lake Recreation Area is a popular wilderness destination near the Santa Ynez and San Rafael Mountains. Most of the county’s mountainous area is within the Los Padres National Forest and includes two wilderness areas: the San Rafael Wilderness and the Dick Smith Wilderness.

Other activities include shopping on State Street in downtown Santa Barbara. The city of Solvang is a major tourist attraction; it was established as a Danish colony in the early 20th century and retains much of its original architecture as well as Danish bakeries, restaurants, antique stores and museums.

Just outside of Solvang are the rolling hills of the Santa Ynez Valley and surrounding Santa Barbara wine country.

Conclusion
Among Santa Barbara County’s main advantages are its good climate, scenic location between the Pacific Ocean and mountains, relative lack of congestion (especially compared to the Los Angeles area), a University of California campus, and a diverse economy.

Looking ahead, the Santa Barbara County economy will struggle with a flat to declining population base. However, Santa Barbara County experienced growth in the number of jobs and has maintained a consistently lower unemployment rate than California over the past decade. It is anticipated that the Santa Barbara County economy will continue to improve and employment will grow, strengthening the demand for real estate.

Santa Barbara County Area Analysis 14
Residential Development Property - Quimby Act
Area Map

Surrounding Area Analysis 15
Residential Development Property - Quimby Act
Surrounding Area Analysis
Location
The subject is located in the Blosser Southwest Specific Plan area within the City of Santa Maria. The boundaries and delineation of the subject neighborhood is summarized below.

Boundaries & Delineation
Boundaries
Market Area Ci ty of Santa Mari a
Submarket Blosser Southwest Specific Plan
Area Type Suburban
De line ation
North La Brea Avenue
South Carmen Lane
East Blosser Road
West A Street

Access and Linkages
Primary highway access to the area is via Highway 101 to the east. Public transportation is provided by Santa Maria Area Transit (SMAT), Guadalupe Flyer, Clean Air Express, and RTA-Route 10. Together, they provide access from Santa Maria to Goleta, Nipomo, San Luis Obispo, Arroyo Grande, and other surrounding areas. Overall, the primary mode of transportation in the area in the automobile.

Access & Linkages
Vehicular Access
Major Highways State Route 135 and 101 Freeways
Primary Corridors W Stowell Road, Betteravia Road, Black Road, Skyway Drive, S Miller Street, and S Collage Drive
Vehicular Access Rating Average
Public T ransit
Providers Santa Maria Acrea Transit (SMAT), Guadalupe Flyer, Clean Air Express, and RTA-Route 10
Nearest Stop/Station Along Carmen Lane
Transit A cce ss Rating A verage
Ai rport(s )
Name Santa Maria Airport
Distance 2 miles south
Driving T im e L e ss than 10 m inut e s
Primary Transportation Mode Automobile

Surrounding Area Analysis 16
Residential Development Property - Quimby Act
Demographic Factors
A demographic profile of the surrounding area, including population, households, and income data, is presented in the following table.

As shown above, the current population within a 5-mile radius of the subject is 136,739, and the average household size is 3.6. Population in the area has declined since the 2020 census, but the trend is projected to change to growth over the next five years. This is in contrast to the population of Santa Barbara County, which is projected to decline, as discussed previously.

Median household income is $84,671, which is lower than the household income for Santa Barbara County. Residents within a 5-mile radius have a considerably lower level of educational attainment than those of Santa Barbara County, while median owner-occupied home values are considerably lower.

Land Use
The area is suburban in character and approximately 85% developed. The following map identifies the City of Santa Maria (outlined in red) with a yellow star showing the general area of the Blosser Southwest Specific Plan.

Surrounding Area Analysis 17
Residential Development Property - Quimby Act

Surrounding Area Land Uses
Character of Area Suburban
Predomi nant Age of Improvements (Years ) 10 to 60 years Pre dominant Quality and Condition A ve rage
Approxi mate Percent Devel oped 85%

Public Services
Service Name/Station Market Area
Police Department Santa Maria Police Department Inside
Fire Department Santa Maria Fire Department Inside
Elementary School Liberty Elementary School Inside
Middle/Junior High School El Camino Junior High School Inside High School Santa Maria High School Inside
Grocery Store Albertsons Inside
Hospital Dignity He alth - Marian Re gional Me dical Ce nte r Inside

Immediate Surroundings
North Industrial development
South Residential devel opment
Eas
t Residential development
West Agricultural

Outlook and Conclusions
The area is in the stable stage of its life cycle. Recent development activity has been predominantly residential. Given the history of the area and the growth trends, it is anticipated that property values will remain flat in the near future.

Residential Market Analysis 18
Residential Development Property - Quimby Act
Residential Market Analysis
The following data is supplied by the CoStar Property Analytics Santa Barbara County Multifamily Market Report and Santa Maria Multifamily Submarket Report, as of the Fourth Quarter 2024.

Multifamily trending data is relevant as it provides a benchmark for an overall residential market.

Following the multifamily submarket analysis, data and analysis of the subject’s single-family residential market is presented.

Santa Barbara County Multifamily Market Analysis
Supply and demand indicators for multifamily housing in Santa Barbara County is shown in the following table.

Demand was modest in 2024; although, it marked the first time since 2021 that it was positive. It was, however, not sufficient to exceed new supply that opened last year. However, only 110 market-rate units opened across Santa Barbara County, reflecting the difficulty in bringing new inventory to market in a period of higher construction and debt costs. The vacancy rate, as a result, was largely unchanged year over year, and it is trending at 3.5% during the first quarter. It is forecast to remain relatively stable in the coming quarters.

Like many Southern California markets, developers encounter obstacles, given local opposition groups and Coastal Commission restraints. Although the State of California has passed pro-growth legislation to aid apartment construction, it has still been an onerous process to bring new inventory to market.

With none left in the construction pipeline, Santa Barbara County faces minimal supply-side pressure in the coming quarters. Instead, the lack of construction starts could inhibit opportunities for household growth in the region in the near term.

Residential Market Analysis 19
Residential Development Property - Quimby Act

Rent growth has measured 1.6% year over year, compared with 1.1% nationally. Renters have become much more price-conscious, and area landlords have noted that competition for renters at the front door has inhibited their ability to aggressively raise rents on available units. Rent growth is forecast to return to the long-term benchmark before the end of 2025 amid a middling demand environment and little supply pressure.

Residential Market Analysis 20
Residential Development Property - Quimby Act

Santa Barbara County has miles of sandy beaches, trendy main streets from Carpinteria to Downtown Santa Barbara, and a thriving outdoor lifestyle. Tourists and locals flock to the area to take advantage of great weather, good surf breaks, and vineyards. It also includes a strong aerospace and defense- related employment sector supported by Vandenberg Air Force Base. Raytheon, for instance, has a significant presence in Goleta. The local universities provide a pipeline of well-educated employees for local employers and a source of inelastic demand for local apartments.

Vandenberg's Space Force Base, approximately 20 miles southwest of the subject, has a population of nearly 20,000 military and civilian employees, many of whom rent market-rate apartments in the area.

Similarly, roughly 15,000 students live off campus at UC Santa Barbara, in market-rate apartments, condos and full home rentals more than 60 miles from the subject. Both students and military members provide an inelastic source of demand for the County’s apartments.

Santa Maria Multifamily Submarket Analysis
Located in northern Santa Barbara County, Santa Maria is the most populous city in the county and ideally situated along the central coast. Households are almost evenly split between homeowners and renters. Agriculture is one of the prominent economic engines of the city, with vineyards accounting for an ever-increasing share of the economy.

Residential Market Analysis 21
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The delivery of Elements, a 167-unit property that opened in 2023, has pushed vacancy to 5.1% during the first quarter. Since opening, it has averaged about ten units of absorption each month with minimal specials offered for new leases. Average rents are above $3,250/month. That delivery and subsequent weaker demand has left vacancy trending above the long-term benchmark, where it is forecast to linger in the coming quarters.

Further supply-side pressure does not appear imminent. Last year, only around 25 market-rate units have opened in Santa Maria, and none are scheduled to open in 2025. Like other coastal cities in California, several obstacles to building here exist, including Coastal Commission restraints and neighborhood opposition. Even so, as the downtown area of Santa Maria continues to be redeveloped, more housing could be added to the mix. Most of the recent proposals, however, point toward affordable housing and not market-rate apartments. Supply and demand indicators for multifamily housing in Santa Barbara County is shown in the following table.

Rent growth has measured -0.8% in the past 12 months, compared with 1.6% across Santa Barbara. In the past five years, rents have grown by 30.0%. Rent growth is not forecast to return to the long-term average until the end of 2025.

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Single-Family Residential Analysis
The city of Santa Maria is located within the Santa Barbara-San Luis Obispo submarket within the Los Angele-Orange-North Counties region. The Ryness Report provides a comparison of sales activity between various regions and markets, including year-to-date totals from the same week of the previous year. Their surveys and reports include sales, traffic and financing rates on activity in major residential developments throughout California, Arizona and Nevada. The report for the LA-Orange- North region for the week ending February 2, 2025 is included on the following page.

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Residential Market Analysis 25
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The Ryness Report has identified eight active Santa Maria. These projects are summarized as follows:

The one active project in Santa Maria is classified as a detached move-up project, with 57 homes in South Santa Maria offering four floor plans ranging from 1,646 to 2,662 square feet. The builder is Coastal Community Builders. Based on the builder’s website, current home prices start in the $800,000’s.

Conclusion
The Santa Maria submarket mirrors the overall Santa Barbara County market as the recent economic cycles have had similar impacts within both regions. Demand for housing in the subject’s market area is considered to be steady at the current time as indicated by the overall trend of multifamily vacancy and rental rates, as well as new home sales prices and activity in recent quarters.

Land Description and Analysis 26
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Property Analysis
Land Description and Analysis
Land Description
Land Area 5.00 acres; 217,800 SF
Source of Land Area Hypothetical assumption from client Shape Rectangular
Topography Generally level and at street grade
Drainage No problems reported or observed
Environmental Hazards None reported or observed
Ground Stability No problems reported or observed
Flood Area Panel Number 06083C0187F
Date September 30, 2005
Zone X
Description Outside of 500-year floodplain
Insurance Required? No
Zoning; Other Regulations
Zoning Jurisdiction City of Santa Maria
Zoning Designation R-2
Description Medium-Density Residential
Legally Conforming? Appears to be legally conforming
Zoning Change Likely? No
Permitted Uses Development of a maximum of eight residential units per acre Other Land Use Regulations None reported
Utilities
Service Provider
Water City of Santa Maria
Sewer City of Santa Maria
Ele ctricity Pacific Gas & E le ctric
Natural Gas Southern California Gas Company
Local Phone Various providers

At the client’s request, the hypothetical subject is to be valued as though it is vacant residential land.

Based on our review of the zoning map and the surrounding area, the predominant residential zoning designation in the area is R-1 and R-2. The R-1 zone allows for six to seven maximum units per acre and the R-2 zone allows for 12 maximum units per acre. Only the R-2 zone allows for development of eight units per acre, the hypothetical density stipulated in the scope of work; therefore, the zoning of the hypothetical parcel is assumed to be R-2, medium-density residential.

We are not experts in the interpretation of zoning ordinances. An appropriately qualified land use attorney should be engaged if a determination of compliance with zoning is required.

Land Description and Analysis 27
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Potential Development Density
Based on the maximum density of eight units per acre, 40 dwelling units could be developed on the hypothetical site.

Easements, Encroachments and Restrictions
A current title report was not provided for review. There are no apparent easements, encroachments, or restrictions that would adversely affect value. This valuation assumes no adverse impacts from easements, encroachments, or restrictions, and further assumes that the subject has clear and marketable title.

Seismic Hazards
All properties in California are subject to some degree of seismic risk. The Alquist-Priolo Earthquake Fault Zoning Act was enacted by the State of California in 1972 to regulate development near active earthquake faults. The Act required the State Geologist to delineate “Earthquake Fault Zones” (formerly known as “Special Studies Zones”) along known active faults in California. Cities and counties affected by the identified zones must limit certain development projects within the zones unless geologic investigations demonstrate that the sites are not threatened by surface displacement from future faulting.

Integra Realty Resources and the appraisers are not qualified to determine the severity of seismic risk, nor are they qualified to determine the appropriate level of seismic insurance nor its availability for the subject property. We recommend the reader contact a qualified insurance broker for additional clarification.

Fire Hazard Risk
The Fire and Resource Assessment Program of CAL FIRE has classified areas of the subject’s County by Fire Hazard Severity Zone. As shown in the following map, the subject’s area has not been classified as an area of concern.

In recent years, wildfires have caused extensive damage throughout the State. Certain of these fires have burned thousands of acres and in some cases destroyed thousands of homes. In the case of the recent Los Angeles wildfires, entire neighborhoods have been destroyed. There can be no assurances that wildfires will not affect the subject property whether or not it has been identified “at-risk” by CAL FIRE. Property damage due to wildfire could result in significant changes in the market value of subject property.

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Conclusion of Site Analysis
Overall, the physical characteristics of the hypothetical site and the availability of utilities result in a functional site, suitable for a variety of uses including those permitted by the assumed zoning. We are valuing the hypothetical site as if developable with 40 dwelling units. We do not consider any other particular restrictions on development.

Subject Property
Land Description and Analysis 29
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Aerial

The hypothetical subject property consists of five acres and is located within the Blosser Southwest Specific Plan area, which is outlines in red in the map above.

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Land Description and Analysis 31
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Land Description and Analysis 32
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Land Description and Analysis 33
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Real Estate Taxes 34
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Real Estate Taxes
The property tax system in California was amended in 1978 by Article XIII to the State Constitution commonly referred to as Proposition 13. It provides for a limitation on property taxes and for a procedure to establish the current taxable value of real property by reference to a base year value, which is then modified annually to reflect inflation (if any). Annual increases cannot exceed 2% per year.

The base year was set at 1975-76 or any year thereafter in which the property is substantially improved or changes ownership. When either of these two conditions occurs, the property is to be reappraised at market value, which becomes the new base year assessed value. Proposition 13 also limits the maximum tax rate to 1% of the value of the property, exclusive of bonds and direct charges.

Bonded indebtedness approved prior to 1978, and any bonds subsequently approved by a two-thirds vote of the district in which the property is located, can be added to the 1% tax rate.

The location and size of the hypothetical subject property is based on the required land dedication by the City of Santa Maria. The Blosser Southwest Specific Plan area is subject to taxes within the tax rate areas 3049 and 3052, both with an ad valorem tax rate of 1.08605%. Real estate taxes would be adjusted upon sale of the subject property. Due to the hypothetical nature of the subject property, a specific analysis of tax impacts and direct assessments is not necessary.

The property tax system in California was amended in 1978 by Article XIII to the State Constitution commonly referred to as Proposition 13. It provides for a limitation on property taxes and for a procedure to establish the current taxable value of real property by reference to a base year value, which is then modified annually to reflect inflation (if any). Annual increases cannot exceed 2% per year.

Highest and Best Use 35
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Highest and Best Use
The highest and best use of a property is the reasonably probable use resulting in the highest value, and represents the use of an asset that maximizes its productivity.

Process
Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as though vacant, and as improved or proposed. By definition, the highest and best use must be:
 Legally permissible under the zoning regulations and other restrictions that apply to the site.  Physically possible.
 Financially feasible.
 Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses.

As Though Vacant
First, the property is evaluated as though vacant, with no improvements.

Legally Permissible
Based on the predetermined density of eight units per acre, the hypothetical site is assumed to be zoned R-2, Medium-Density Residential, which has a maximum allowable density of 12 units per acre.

Within the R-2 zone, the developable uses are primarily residential. There are no apparent legal restrictions, such as easements or deed restrictions, effectively limiting the use of the property. Given prevailing land use patterns in the area, only residential development is given further consideration in determining highest and best use of the site, as though vacant.

Physically Possible
The physical characteristics of the hypothetical site assume an area of five acres, flat topography and a rectangular shape. The physical characteristics of the site do not appear to impose any unusual restrictions on development. Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses.

Financially Feasible
Based on the accompanying analysis of the market, there is currently adequate demand for residential development in the subject’s area. Evidence of residential construction in the region suggests development may be financially feasible under current market conditions; though, a test of financial feasibility is beyond the scope of this analysis.

Maximally Productive
There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than residential development. Accordingly, residential developed to the predetermined density level of eight units per area, is the maximally productive use of the property.

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Conclusion
Development of the site for residential development is the only use which meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as though vacant.

As Improved
At our client’s request, we assume the subject is vacant, unimproved land. Therefore, a highest and best analysis as improved is not applicable.

Most Probable Buyer
Taking into account the characteristics of the site, as well as area development trends, the probable buyer is a regional or national developer.

Valuation Methodology 37
Residential Development Property - Quimby Act
Valuation
Valuation Methodology
Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach.

The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties.

The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner-user properties.

The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income-producing properties.

Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type.

The methodology employed in this assignment is summarized as follows:

Approaches to Value
A pproach A pplicability to Subject Use in A ssignme nt Cost A pproach Not A pplicable Not Utilized
Sales Comparison A pproach A pplicable Utilized
Income Capitalization Approach Not Applicable Not Utilized Sales Comparison Approach 38
Residential Development Property - Quimby Act
Sales Comparison Approach
The sales comparison approach develops an indication of value by comparing the subject to sales of similar properties. The steps taken to apply this approach are:
 Identify relevant property sales;
 Research, assemble, and verify pertinent data for the most relevant sales;  Analyze the sales for material differences in comparison to the subject;  Reconcile the analysis of the sales into a value indication for the subject.

To apply the sales comparison approach, we searched for sale transactions within the following parameters:
 Property Type: vacant land zoned for residential development  Location: west Santa Barbara County, with an emphasis on the City of Santa Maria  Size: up to 40 acres
 Transaction Date: within the past 36 months
As discussed, the subject is a hypothetical property that is assumed to be typically accessible within the Blosser Southwest Specific Plan area of Santa Maria. It is assumed to have flat topography, consistent with observations of the area, and a generally rectangular developable shape. The hypothetical site is five acres with a development density of eight units per acre (40 dwelling units) and it is assumed to have no entitlements for development in place.

For this analysis, we use price per unit as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. The most relevant sales are summarized in the following table.

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Summary of Comparable Land Sales
No. Name/Address
Sale Date;
Status Sale Price
SF;
Acres
Units;
Density
(Units/Ac.) Zoning $/Uni
t
$/SF
Land
1 400 East Waller Oct-23 $1,215,000 210,395 24 LDR-5 $50,625 $5.77 Santa Maria Cl osed 4.83 5.0
Santa Barbara County
CA
2 5175 S Bradley Rd Jun-23 $1,200,000 301,871 14 RA-2 $85,714 $3.98 Santa Maria Cl osed 6.93 2.0
Santa Barbara County
CA
3 1038 W. Ocean Ave. Mar-23 $450,000 59,242 13 R2PD $34,615 $7.60 Lompoc Closed 1.36 9.6
Santa Barbara County
CA
4 1331 E Foster Site Jan-23 $1,300,000 179,467 58 DR-8 $22,414 $7.24 1331 E. Foster Rd. Closed 4.12 14.1
Santa Maria
Santa Barbara County
CA
5 502-524 Barcellus Site Apr-22 $2,400,000 103,673 80 R3 $30,000 $23.15 502-524 Barcellus Closed 2.38 33.6
Santa Maria
Santa Barbara County
CA
6 Coastal Meadows Jan-25 $1,799,000 134,165 40 R-2 $44,975 $13.41 1275 V St. Listing 3.08 13.0
Lompoc
Santa Barbara County
CA
Subject 217,800 40 R-2
Residential Development Property -
Quimby Act

5.00 8.0
Santa Maria, C
A
Comme nts: The Church of Je sus Christ Latter Day Saints sold 4.38 acres of land locate d at 400 E Walle r in Santa Maria, CA , to t he VB Magnolia Apartments on October 12th, 2023 for $1,215,000 or $251,552.80 per acre.

The property was on the market for 22 months, with an initial asking high price of $1,375,000 and the lowest at $1,219,000.

Comments: Parcel adjacent to busiest intersection and largest shopping center in fast-growing Orcutt, California. Identified fo r 14 units of residential. The property was on the market for less than a month and the initial asking price was $1,500,000. The property tra ded for $1,200,000 or $173,160.17 per acre.

Comments: The property is located at the southeast corner of West Ocean Avenue (SR-246) and South R Street. Surrounding land us es i nclude commercial to the north and west, vacant land and a church to the east, and single-family residences to the south. Previously, the site was entitled for the de ve lopm e nt of 13 single -fam ily re side nce s (known as Mosaic Walk). Howe ve r, prior t o se lling, t he Se lle r subm itt e d a pre-approval for 30 apartment uni ts. Approval s for ei ther apartments of SFR was needed to be obtai ned by the Buyer.

Comments: Site was improved with a daycare facility that was vacant as of the date of sale. Purchase price is for an unentitle d site. The buyer has se cure d e nt itle m e nt s and subsidie s for de ve lopm e nt of a 58-unit affordable housing de ve lopm e nt on t he site .

Comments: Sale of an entitled site for 80 apartment units. Buyer secured funding in 2023 for the development, which will incl ude 27 affordable units and the remainder of units will be leased at market rents.

Comments: Current listing (on the market in March 2023) of a multifamily zoned site with entitlements in place for a 40-unit pr oject, known as Coastal Meadows, comprised of ten triplex buildings and five duplex buildings. Seller purchased the property with the same ent itle m e nt s in December 2020 for $2,500,000. The current listing price indicates a 28% loss over the 2020 purchase price. However, the develo pment plan expired November 10, 2023 and the tentative map expired in December 2022. Marketing material indicated the Buyer will need to amend the development plan from 40 attached to attached housing apartment units, with will require a 10% affordable housing requirement. The site is currently in an unimproved condition and will be delivered "as is, where is."

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Comparable Land Sales Map

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Sale 1
400 East Waller
Sale 2
5175 S Bradley Rd
Sale 3
1038 W. Ocean Ave.

Sale 4
1331 E Foster Site
Sale 5
502-524 Barcellus Site
Sale 6
Coastal Meadows
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Analysis and Adjustment of Sales
Adjustments are based on a rating of each comparable sale in relation to the subject. The adjustment process is typically applied through either quantitative or qualitative analysis, or a combination of both analyses.

Qualitative analysis recognizes the inefficiencies of real estate markets and the difficulty of expressing adjustments with mathematical precision. Several techniques can be utilized in qualitative analysis including
 Relative comparison analysis;
 Ranking analysis;
 Personal interviews.

The comparable sales and subject property have been analyzed using one or more of these methods for each of the following elements of comparison.

The rating of each comparable sale in relation to the subject is the basis for the adjustments. If the comparable is superior to the subject, its sale price is adjusted downward to reflect the subject’s relative attributes; if the comparable is inferior, its price is adjusted upward.

Transactional adjustments are applied for property rights conveyed, financing, conditions of sale, expenditures made immediately after purchase, and market conditions. In addition, property adjustments include – but are not limited to – location, access/exposure, size, quality, effective age, economic and legal characteristics, and non-realty components of value. Adjustments are considered for the following factors, in the sequence shown below.

Transactional Adjustments
Real Property Rights Conveyed
The opinion of value in this report is based on a fee simple estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat, as well as non-detrimental easements, community facility districts, and conditions, covenants and restrictions (CC&Rs). All the comparables represent fee simple estate transactions. Therefore, adjustments for property rights are not necessary.

Financing Terms
In analyzing the comparables, it is necessary to adjust for financing terms that differ from market terms. Typically, if the buyer retained third-party financing (other than the seller) for the purpose of purchasing the property, a cash price is presumed and no adjustment is required. However, in instances where the seller provides financing as a debt instrument, a premium may have been paid by the buyer for below-market financing terms, or a discount may have been demanded by the buyer if the financing terms were above market. The premium or discounted price must then be adjusted to a cash equivalent basis. The comparable sales represented cash-to-seller transactions and, therefore, do not require adjustment.

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Conditions of Sale
Adverse conditions of sale can account for a significant discrepancy from the sale price actually paid, compared to that of the market. This discrepancy in price is generally attributed to the motivations of the buyer and the seller. Certain conditions of sale are considered non-market and may include the following:
 a seller acting under duress (e.g., eminent domain, foreclosure);  buyer motivation (e.g., premium paid for assemblage, certain 1031 exchanges);  a lack of exposure to the open market;
 an unusual tax consideration;
 a sale at legal auction.

Comparable 6 is a current listing and is adjusted downward to reflect the likelihood the sale price will be below the list price, as actual sale prices are typically negotiated downward. No further adjustments are required for conditions of sale.

Expenditures Made Immediately After Purchase
This category considers expenditures incurred immediately after the purchase of a property.

Comparable 4 sold with a vacant daycare facility on the site; therefore, an adjustment for the cost to demolition the improvements to create a vacant site was considered and applied to this sale. No other adjustments are required for expenditures after sale.

Market Conditions
A market conditions adjustment is applied when market conditions at the time of sale differ from market conditions as of the effective date of value. Adjustments can be positive when prices are rising, or negative when markets are challenged by factors such as a deterioration of the economy or adverse changes in supply and/or demand in the market area. Consideration must also be given to when the property was placed under contract, versus when the sale actually closed.

In evaluating market conditions, changes between the comparable sale date and the effective date of this appraisal may warrant adjustment; however, if market conditions have not changed, then no adjustment is required.

The sales took place from April 2022 to January 2025. Towards the middle of 2022, the market began to slow due to rising interest rates coupled with high inflation. Most of the comparables transferred in 2023 or later, after the onset of the interest rate increases. While Comparable 5 transferred in April 2022 based on our analysis of the transaction, no adjustments are deemed necessary for market conditions.

Property Adjustments
Location
Factors considered in evaluating location include, but are not limited to, demographics, growth rates, surrounding uses and property values.

Sales Comparison Approach 44
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Sales 1, 2, 4 and 5 are located in Santa Maria like the subject and no adjustments for location are necessary. However, Sales 3 and 6 are located in Lompoc, which is considered inferior to the subject based on median home prices.

Access/Exposure
Convenience to transportation facilities, ease of site access, and overall visibility of a property can have a direct impact on property value. High visibility, however, may not translate into higher value if it is not accompanied by good access. In general, high visibility and convenient access, including proximity to major linkages, are considered positive amenities when compared to properties with inferior attributes.

All of the comparables are similar to the subject.

Size
Due to economies of scale, the market exhibits an inverse relationship between number of units and price per units, such that more units generally sell for a lower price per unit than fewer units, all else being equal. To account for this relationship, applicable adjustments are applied for differences in number of units. The comparables that have more units than the subject are adjusted upward, and vice versa.

Sales 1, 2 and 3 have fewer potential units than the subject and are adjusted downward. Sales 4 and 5 allow for more potential units and are adjusted upward. No other adjustments are warranted.

Shape and Topography
This category accounts for the shape of the site influencing its overall utility and/or development potential, as well as the grade of the land.

Sales 1, 2, 4 and 5 are generally rectangular in shape and offer similar topography as the subject; no adjustments are applied to these sales. Sales 3 and 6 have similar topography as the subject, but irregular parcel shapes, which is inferior to the subject's hypothetical site presumed herein.

Zoning
This element of comparison accounts for government regulations that can affect the types and intensities of uses allowable on a site. Moreover, this category includes considerations such as allowable density or floor area ratio, structure height, setbacks, parking requirements, landscaping, and other development standards. The subject has a zoning designation of R-2 - Medium-Density Residential.

All of the comparables are zoned for residential development and no adjustments are warranted.

Density
On a per unit basis, a lower density typically equates to a greater proportion of the overall land being devoted to each unit. Comparables with substantially higher densities are considered inferior to the subject property on a per unit basis.

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Based on the proposed number of units, Sale 5 has a significantly higher density, which is inferior to the subject and is adjusted upward.

Entitlements
Entitlements consist of the specific level of governmental approvals attained pertaining to development of a site, which can include a bonus density or conditional use permit (CUP) that allows for uses not typically permitted under standard zoning.

The subject site has no entitlements for development in place (based on the hypothetical condition).

Similarly, Sales 1, 3, 4 and 6 had no entitlements at the time of sale and adjustments for this element of comparison are not warranted. While some of these properties has previously approved entitlements that have since expired, it was determined an adjustment was not necessary. However, Sales 2 and 5 has approved entitlements for development at the time of sale and these comparables are adjusted downward.

Adjustments Summary
The sales are compared to the subject and adjusted to account for material differences that affect value. The following table summarizes the adjustments applied to each sale.

Land Sales Adjustment Grid
Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Comparable 6 Address Blosser Southwest
Speci fi c Pl an Area
400 East Waller 5175 S. Bradley Rd 1038 W. Ocean
Ave.
1331 E. Foster Rd. 502-524 Barcellus 1275 V St.

City Santa Maria Santa Maria Santa Maria Lompoc Santa Maria Santa Maria Lompoc County Santa Barbara Santa Barbara Santa Barbara Santa Barbara Santa Barbara Santa Barbara Santa Barbara State California C A CA CA C A CA CA
Sale Date Oct-23 Jun-23 Mar-23 Jan-23 Apr-22 Jan-25
Sal e Status Cl osed Cl osed Cl osed Cl osed Cl osed Li sti ng Sale Price $1,215,000 $1,200,000 $450,000 $1,300,000 $2,400,000 $1,799,000 Square Feet 217,800 210,395 301,871 59,242 179,467 103,673 134,165 A c r e s 5 . 0 04 . 8 36 . 9 31 . 3 64 . 1 22 . 3 83 . 0 8 N u m b e r o f U n i t s 4 02 41 41 35 88 04 0
Units Per Acre 8.00 4.97 2.02 9.56 14.08 33.61 12.99
Price per Unit $50,625 $85,714 $34,615 $22,414 $30,000 $44,975 Property Ri ghts Fee Si mpl e Fee Si mpl e Fee Si mpl e Fee Si mpl e Fee Si mpl e Fee Si mpl e R a n k i n g ––––––
Financing Te rms Cash to se lle r Cash to se lle r Cash to se lle r Cash to se lle r Cash to se lle r Cash to se lle r R a n k i n g ––––––
Conditions of Sale A rm's-le ngth A rm's-le ngth A rm's-le ngth A rm's-le ngth A rm's-le ngth L isting/REO R a n k i n g –––––S u p e r i o r
Expenditures Made Immediately After Purchase None None None Demolition None None Ranking – – – Inferior – –
Market Conditions 2/5/2025 Oct-23 Jun-23 Mar-23 Jan-23 Apr-22 Jan-25 R a n k i n g ––––––
L o c a t i o n ––I n f e r i o r ––I n f e r i o r
A c c e s s / E x p o s u r e ––––––
Size Superior Superior Superior Inferior Inferior –
Shape and Topography – – Inferior – – Inferior
Z o n i n g ––––––
Density – – – – Inferior –
Entitlements – Superior – – Superior –
Overall Ranking Superior Very Superior Inferior Very Inferior Inferior Inferior Indicated Value $50,000

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Value Indication
Prior to adjustment, the sales reflect a range of $22,414 - $85,714 per unit. Based on the previous analysis and discussion, the market data is arrayed as follows:

Ranking Analysis and Reconciliation
Comparable N o. Ove rall Com parabilit y Price pe r U nit Est im ate d V alue 4 Very Inferior $22,414
5 Inferior $30,000
3 Inferior $34,615
6 Inferior $44,975
Subject $50,000
1 Superior $50,625
2 Very Superior $85,714
Estimated Unit Value $50,000

After adjustment, the range is narrowed, suggesting a market value indicator greater than Sales 4 through 6, but less than Sales 1 and 2. Overall, a market value between $44,975 and $50,625 per unit is indicated by the comparables, and a conclusion towards the upper end of the narrowed range is considered reasonable. Based on the preceding discussion and analysis, we arrive at a land value conclusion via the sales comparison approach as follows:

Land Value Conclusion
Indicated Value per Unit $50,000
Subject Units 40
Indicated Value $2,000,000
Rounded $2, 000,000

The concluded value of the underlying land of the hypothetical site equates to $9.20 per square foot, rounded. This falls within the unadjusted range of comparables, which is from $3.98 - $23.15 per square foot for the comparable sales in this analysis.

Land Value Conclusion per Square Foot
Indicated Value $2,000,000
Land Area (SF) 217,800
Indicated Value per SF $9.18
Rounded $9.20

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Conclusion of Value
As discussed previously, we use only the sales comparison approach in developing an opinion of value for the subject. The cost and income approaches are not applicable and are not used.

Based on the preceding valuation analysis and subject to the definitions, assumptions, and limiting conditions expressed in the report, our value opinion follows:

Value Conclusion
Val ue Type & Apprai sal Premi se Interest Apprai sed Date of Val ue Value Conclusion
(per SF)
Market Value Fee Simple February 5, 2025 $9.20

Extraordinary Assumptions and Hypothetical Conditions
(None)

1. At our client’s request, and in conjunction with the agreed upon scope of work, we are appraising a hypothetical residential property that will serve as the basis for a concluded land value. This hypothetical vacant parcel is non-speci fi c and i s l ocated i n the area of the Bl osser Southwest Speci fi c Pl an. The hypotheti cal property contains five acres and can be developed with a density of eight units per acre. The concluded value is based on this hypothetical parcel and expressed as a value per square foot to be applied as necessary by the client.

The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.

The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.

Exposure Time
Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Based on the concluded market value stated previously, it is our opinion that the probable exposure time is 12 months.

Marketing Period
Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. We estimate the subject’s marketing period at 12 months.

Certification 48
Residential Development Property - Quimby Act
Certification
We certify that, to the best of our knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions.

3. We 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. We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment.

5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.

7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations.

9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.

10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

11. Sara Gilbertson, MAI, has not made a personal inspection of the property that is the subject of this report. Eric Segal, MAI, has personally inspected the subject

12. No one provided significant real property appraisal assistance to the person(s) signing this certification.

13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP.

14. As of the date of this report, Sara Gilbertson, MAI, and Eric Segal, MAI,have completed the continuing education program for Designated Members of the Appraisal Institute.

Certification 49
Residential Development Property - Quimby Act

Sara Gilbertson, MAI
Certified General Real Estate Appraiser #3002204
Eric Segal, MAI
Certified General Real Estate Appraiser
#AG026558

Assumptions and Limiting Conditions 50
Residential Development Property - Quimby Act
Assumptions and Limiting Conditions
This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report:

1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use.

2. There are no existing judgments or pending or threatened litigation that could affect the value of the property.

3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property.

4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction.

5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes.

6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.

This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report:

1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised.

2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events.

3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated.

4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies.

5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment.

6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal

Assumptions and Limiting Conditions 51
Residential Development Property - Quimby Act
covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct.

7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal.

8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes.

9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context.

10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report.

11. Information, estimates and opinions contained in the report and obtained from third-party sources are assumed to be reliable and have not been independently verified.

12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results.

13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate.

14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered.

15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur.

16. The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions.

17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic Assumptions and Limiting Conditions 52
Residential Development Property - Quimby Act
conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material.

18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations.

Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non- conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance.

19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk.

20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR - Los Angeles, Integra Realty Resources, Inc., and their respective officers, owners, managers, directors, agents, subcontractors or employees (the “Integra Parties”), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist.

Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property.

21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal.

22. We are not a building or environmental inspector. The Integra Parties do not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended.

23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner.

24. IRR - Los Angeles is an independently owned and operated company. The parties hereto agree that Integra shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR - Los Angeles. In addition, it is expressly agreed that in any Assumptions and Limiting Conditions 53
Residential Development Property - Quimby Act
action which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct.

25. IRR - Los Angeles is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided.

Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable).

26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property.

27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future.

28. The appraisal is also subject to the following:

Assumptions and Limiting Conditions 54
Residential Development Property - Quimby Act
Extraordinary Assumptions and Hypothetical Conditions
(None)

1. At our client’s request, and in conjunction with the agreed upon scope of work, we are appraising a hypothetical residential property that will serve as the basis for a concluded land value. This hypothetical vacant parcel is non-speci fi c and i s l ocated i n the area of the Bl osser Southwest Speci fi c Pl an. The hypotheti cal property contains five acres and can be developed with a density of eight units per acre. The concluded value is based on this hypothetical parcel and expressed as a value per square foot to be applied as necessary by the client.

The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.

The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.

Addenda
Residential Development Property - Quimby Act
Addendum A
Appraiser Qualifications

Eric Segal, MAI Integra Realty Resources - Los
Angeles (219)
irr.com
T 916.435.3883
F 916.435.4774
12100 Wilshire Blvd
Suite 800
Los Angeles, CA 90025

Experience
Mr. Segal is a Certified General real estate appraiser and holds the Appraisal Institute's MAI designation. In 1998, Mr. Segal began his career in real estate as a research analyst/appraiser trainee for Richard Seevers and Associates. By 1999, he began writing narrative appraisal reports covering a variety of commercial properties, with an emphasis on residential master planned communities and subdivisions. Today, Mr. Segal is a partner in the firm and is involved in appraisal assignments covering a wide variety of properties including office, retail, industrial, multifamily housing, master planned communities, and specializes in the appraisal of Mello Roos Community Facilities Districts and Assessment Districts for land secured municipal financings, as well as multifamily developments under the U.S. Department of Housing and Urban Development’s Multifamily Accelerated Processing (MAP) Guide. He has developed the experience and background necessary to deal with complex assignments covering an array of property types, with a particular focus on urban redevelopment in the cities of San Francisco, Oakland, Monterey, Alameda and San Mateo. He has developed the experience and background necessary to deal with complex assignments covering an array of property types.

Eric is currently Senior Managing Director of the Integra Los Angeles office, and Managing Director of the Integra Orange County, Integra-San Francisco and Integra-Sacramento offices.

Professional Activities & Affiliations
MAI Designation, Appraisal Institute Appraisal Institute, January 2016 Licenses
California, Certified General Real Estate Appraiser, AG026558, Expires February 2027 Nevada, Certified General, A.0207666-CG, Expires January 2027 Arizona, Certified General, CGA - 1006422, Expires January 2026 Washington, Certified General, 20100611, Expires June 2025 Education
Academic:

Bachelor of Science in Business Administration (Concentrations in Finance and Real Estate & Land Use Affairs), California State University, Sacramento

Appraisal and Real Estate Courses:

Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) Uniform Standards of Professional Appraisal Practice
Appraisal Principles
Basic Income Capitalization
Highest & Best Use and Market Analysis
Advanced Income Capitalization
Report Writing and Valuation Analysis
Self Storage Economics and Appraisal Seminar
Appraisal Litigation Practice and Courtroom Management
Hotel Valuations: New Techniques for today’s Uncertain Times Computer Enhanced Cash Flow Modeling
Advanced Sales Comparison & Cost Approaches
[email protected] - 916.435.3883 x228

Eric Segal, MAI Integra Realty Resources - Los
Angeles (219)
irr.com
T 916.435.3883
F 916.435.4774
12100 Wilshire Blvd
Suite 800
Los Angeles, CA 90025

Education (Cont'd)
Advanced Applications
Subdivision Valuation
Appraisal of Self-Storage Facilities
Appraisal of Fast Food Facilities
Appraisal of Limited Service Hotels
How Tenants Create or Destroy Value: Leasehold Valuation and its Impact on Value Appraisal of Manufactured Homes Featuring Next Generation Manufactured Homes Appraisal and Real Estate Courses (cont’d):

Business Practices and Ethics
IRS Valuation Update
[email protected] - 916.435.3883 x228

Sara Gilbertson, MAI Integra Realty
Resources - Sacramento
irr.com
T 916.435.3883
F 916.435.4774
516 Gibson Drive
Suite 290
Roseville, CA 95678

Experience
Ms. Gilbertson is a licensed appraiser with Integra Realty Resources, a real estate appraisal firm that engages in a wide variety of real estate valuation and consultation assignments. After completing her bachelor’s degree at California State University, Sacramento, Ms. Gilbertson began her career in real estate as a research analyst/appraiser trainee for Seevers Jordan Ziegenmeyer in 2011. She has experience in writing narrative appraisal reports covering a variety of commercial properties, as well as special use properties including self-storage facilities, hotels and mobile home parks. She also specialized in the appraisal of residential master planned communities and subdivision, as well as Mello Roos and Assessment Districts for land secured municipal financings. Ms. Gilbertson has developed the experience and background necessary to deal with complex assignments covering an array of property types.

Licenses
California, California Certified General Real Estate Appraiser, 3002204, Expires May 2026 Education
Academic:

Bachelor of Science in Business Administration (Concentration in Real Estate and Land Development), California State University, Sacramento

Appraisal Institute Courses:

Basic Appraisal Principles
Basic Appraisal Procedures
Uniform Standards of Professional Appraisal Practice
Real Estate Finance and Statistics and Valuation Modeling Sales Comparison Approach
Report Writing and Case Studies
Market Analysis and Highest and Best Use
Site Valuation and Cost Approach
Basic Income Capitalization
Federal and California Statutory and Regulator Laws
Quantitative Analysis
Business Practices and Ethics
Advanced Market Analysis and Highest and Best Use
Advanced Income Capitalization
Advanced Concepts and Case Studies
[email protected] - 916.435.3883 x248

About IRR
Integra Realty Resources, Inc. (IRR) provides worl d-class commercial real estate valuation, counseling, and advisory services. Routinely ranked among leading property valuation and consulting firms, we are now the largest independent firm in our industry in the United States, with local offices coast to coast and in the Caribbean.

IRR offices are led by MAI-designated Senior Managing Directors, industry leaders who have over 25 years, on average, of commercial real estate experience in their local markets. This experience, coupled with our understanding of how national trends affect the local markets, empowers our clients with the unique knowledge, access, and historical perspective they need to make the most informed decisions.

Many of the nation's top financial institutions, de velopers, corporations, law firms, and government agencies rely on our professional real estate opinions to best understand the value, use, and feasibility of real estate in their market.

Local Expertise...Nationally!
irr.com

Addenda
Residential Development Property - Quimby Act
Addendum B
IRR Quality Assurance Survey
Addenda
Residential Development Property - Quimby Act
IRR Quality Assurance Survey
We welcome your feedback!
At IRR, providing a quality work product and deliveri ng on time is what we st rive to accomplish. Our local offices are determined to meet your expectations. Please reach out to your local office contact so they can resolve any issues.

Integra Quality Control Team
Integra does have a Quality Control Team that resp onds to escalated concerns related to a specific assignment as well as general concerns that are unre lated to any specific a ssignment. We also enjoy hearing from you when we exceed expectations! Yo u can communicate with this team by clicking on the link below. If you would like a follow up call, please provide your contact information and a member of this Quality Control Team will call contact you.

Link to the IRR Quality Assurance Survey: quality.irr.com Addenda
Residential Development Property - Quimby Act
Addendum C
Comparable Data

Land Sale Profile Sale No. 1
Location & Property Identification
400 East Waller Property Name:

Sub-Property Type: Residential, Single Family
Development Land
400 East Waller Address:

Santa Maria, CA 93455 City/State/Zip:

Santa Barbara County:

IRR Event ID: 3327079
Sale Information
$1,215,000 Sale Price:
$1,215,000 Effective Sale Price:
10/12/2023 Sale Date:

Recording Date: 10/23/2023
Listing Price: $1,375,000
Sale Status: Closed
$/Acre(Gross): $251,553
$/Land SF(Gross): $5.77
$/Acre(Usable): $251,553
$/Land SF(Usable): $5.77
Grantor/Seller: Church Of Jc Latter Day Saints
Grantee/Buyer: VB Magnolia Apartments LP
Exposure Time: 27 (months)
Recording No.: 202300031429
Verification Type: Secondary Verification
Secondary Verific. Source: CoStar
Improvement and Site Data
MSA: Santa Barbara
S 2 Of S1/2 Of Nw1/4 Sec 35
Twn 10 Rng 34
Parcel Number(s):
109-040-001, 109-040-024
Legal/Tax/Parcel ID:

4.83 Acres(Gross):
210,394/210,395 Land-SF(Usable/Gross):

Zoning Desc.: 8-R-1
Source of Land Info.: Other
Comments
The Church of Jesus Christ Latter Day Saints sold 4.38 acres of land located at 400 E Waller in Santa Maria, CA, to the VB Magnolia Apartments on October 12th, 20023 for $1,215,000 or $251,552.80 per acre.

The property was on the market for 22 months, with an initial asking high price of $1,375,000 and the lowest at $1,219,000.

The seller was represented by Mike from McKibben
Enterprises.

The information in the comparable was verified by the listing broker. 400 East Waller

Land Sale Profile Sale No. 2
Location & Property Identification
5175 S Bradley Rd Property Name:

Sub-Property Type: Residential, Multifamily Land
5175 S. Bradley Rd Address:

Santa Maria, CA 93455 City/State/Zip:

Santa Barbara County:

Suburban Market Orientation:

IRR Event ID: 3327085
Sale Information
$1,200,000 Sale Price:
$1,200,000 Effective Sale Price:
06/22/2023 Sale Date:

Recording Date: 06/21/2023
Listing Price: $1,500,000
Sale Status: Closed
$/Acre(Gross): $173,160
$/Land SF(Gross): $3.98
$/Land SF(Usable): $3.98
$85,714 /Approved Lot $/Unit (Potential):

Grantor/Seller: Dan C Bowers Living Trust
Grantee/Buyer: Mittry Farms Trust
Assets Sold: Real estate only
Property Rights: Fee Simple
Exposure Time: 13 (months)
Financing: Cash to seller
Conditions of Sale: Arm's-length
Document Type: Deed
Recording No.: 202300017884
Verification Type: Secondary Verification
Secondary Verific. Source: CoStar
Improvement and Site Data
MSA: Santa Barbara
Parcel Number(s):
103-740-017, 103-740-017
Legal/Tax/Parcel ID:

6.93 Acres(Gross):
301,871/301,871 Land-SF(Usable/Gross):

No. of Units (Potential): 14
Frontage Desc.: 592.000 feet on South Bradley
Road
Zoning Desc.: PRD
Source of Land Info.: Other
Comments
Parcel adjacent to busiest intersection and largest shopping center in fast-growing Orcutt, California. Identified for 14 units of residential. The property was on the market for less than a month and the initial asking price was $1,500,000. The
property traded for $1,200,000 or $173,160.17 per acre.

The property was on the market for less than a month and the initial asking price was $1,500,000.

Pacifica Commercial Real Estate represented the seller. 5175 S Bradley Rd

Land Sale Profile Sale No. 3
Location & Property Identification
1038 W. Ocean Ave. Property Name:

Sub-Property Type: Residential
1038 W. Ocean Ave. Address:

Lompoc, CA 93436 City/State/Zip:

Santa Barbara County:

Suburban Market Orientation:

IRR Event ID: 3327086
Sale Information
$450,000 Sale Price:
$450,000 Effective Sale Price:
03/07/2023 Sale Date:

Listing Price: $459,000
Sale Status: Closed
$/Acre(Gross): $330,880
$/Land SF(Gross): $7.60
Grantor/Seller: Tn Price & Associates
Assets Sold: Real estate only
Property Rights: Fee Simple
Exposure Time: 7 (months)
Financing: Cash to seller
Conditions of Sale: Arm's-length
Verification Type: Secondary Verification
Secondary Verific. Source: CoStar
Improvement and Site Data
091-110-047 Legal/Tax/Parcel ID:

1.36 Acres(Gross):
59,242 Land-SF(Gross):

Zoning Desc.: R2PD, Medium Density
Residential
Source of Land Info.: Public Records
Comments
The property is located at the southeast corner of West Ocean Avenue (SR-246) and South R Street. Surrounding land uses include commercial to the north and west, vacant land and a church to the east, and single-family residences to the south. Previously, the site was entitled for the development of 13 single-family residences (known as Mosaic Walk). However, prior to selling, the Seller submitted a pre-approval for 30 apartment units. Approvals for either apartments of SFR was needed to be obtained by the Buyer. 1038 W. Ocean Ave.

Land Sale Profile Sale No. 4
Location & Property Identification
1331 E Foster Site Property Name:

Sub-Property Type: Residential, Multifamily Land
1331 E. Foster Rd. Address:

Santa Maria, CA 93455 City/State/Zip:

Santa Barbara County:

Small Town - Non Metro Market Orientation:

IRR Event ID: 3052274
Sale Information
$1,300,000 Sale Price:
$1,300,000 Effective Sale Price:
01/31/2023 Sale Date:

Sale Status: Closed
$/Acre(Gross): $315,534
$/Land SF(Gross): $7.24
$22,414 /Apt. Unit $/Unit (Potential):

Grantor/Seller: Palmerston Family Trust
Grantee/Buyer: Affordable Housing Land
Consultants, LLC
Property Rights: Fee Simple
Exposure Time: 24 (months)
Financing: Cash to seller - buyer obtained
financing
Conditions of Sale: Arm's-length
Document Type: Deed
Recording No.: 202300023000
Verification Type: Secondary Verification
Improvement and Site Data
107-240-040 Legal/Tax/Parcel ID:

4.12 Acres(Gross):
179,467 Land-SF(Gross):

No. of Units (Potential): 58
Zoning Code: DR-8
Zoning Desc.: Design Residential
(Multifamily)
Source of Land Info.: Public Records
Comments
Site was improved with a daycare facility that was vacant as of the date of sale. Purchase price is for an unentitled site. The buyer has secured entitlements and subsidies for
development of a 58-unit affordable housing development on the site.
1331 E Foster Site

Land Sale Profile Sale No. 5
Location & Property Identification
502-524 Barcellus Site Property Name:

Sub-Property Type: Residential, Multifamily Land
502-524 Barcellus Address:

Santa Maria, CA 93454 City/State/Zip:

Santa Barbara County:

Small Town - Non Metro Market Orientation:

IRR Event ID: 3052279
Sale Information
$2,400,000 Sale Price:
$2,400,000 Effective Sale Price:
04/15/2022 Sale Date:

Sale Status: Closed
$/Acre(Gross): $1,008,403
$/Land SF(Gross): $23.15
$30,000 /Apt. Unit $/Unit (Potential):

Grantor/Seller: Fugate Gst Non-exempt Qtip
Trust
Grantee/Buyer: Solari Enterprises, Inc.

Property Rights: Fee Simple
Exposure Time: 36 (months)
Financing: Cash to seller - buyer obtained
financing
Conditions of Sale: Arm's-length
Document Type: Deed
Recording No.: 18685
Verification Type: Secondary Verification
Improvement and Site Data
128-067-032, 033 and 034 Legal/Tax/Parcel ID:

2.38 Acres(Gross):
103,673 Land-SF(Gross):

No. of Units (Potential): 80
Zoning Code: R3
Zoning Desc.: High Density Residential
Source of Land Info.: Public Records
Comments
Sale of an entitled site for 80 apartment units. Buyer secured funding in 2023 for the development, which will include 27 affordable units and the remainder of units will be leased at market rents.
502-524 Barcellus Site

Land Sale Profile Sale No. 6
Location & Property Identification
Coastal Meadows Property Name:

Sub-Property Type: Residential, Multifamily Land
1275 V St. Address:

Lompoc, CA 93436 City/State/Zip:

Santa Barbara County:

Rural Market Orientation:

IRR Event ID: 3052285
Sale Information
$1,799,000 Listing Price:
$1,799,000 Effective Listing Price:
09/15/2023 Listing Date:

Sale Status: Listing
$/Acre(Gross): $584,091
$/Land SF(Gross): $13.41
$/Acre(Usable): $584,091
$/Land SF(Usable): $13.41
$44,975 /Approved Unit $/Unit (Potential):

Grantor/Seller: Raza Development Fund Inc.

Grantee/Buyer: N/A - Listing
Assets Sold: Real estate only
Property Rights: Fee Simple
Financing: Cash to seller
Conditions of Sale: Arm's-length
Verification Type: Secondary Verification
Improvement and Site Data
MSA: Santa Barbara-Santa Maria,
CA Metropolitan Statistical
Area
093-070-036 Legal/Tax/Parcel ID:

3.08/3.08 Acres(Usable/Gross):
134,165/134,165 Land-SF(Usable/Gross):

Usable/Gross Ratio: 1.00
No. of Units (Potential): 40
Zoning Code: R-2
Zoning Desc.: Medium Density Residential
Source of Land Info.: Other
Comments
Current listing (on the market in March 2023) of a multifamily zoned site with entitlements in place for a 40-unit project, known as Coastal Meadows, comprised of ten triplex buildings and five duplex buildings. Seller purchased the property with the same entitlements in December 2020 for $2,500,000. The current listing price indicates a 28% loss over the 2020 purchase price. However, the development plan expired
November 10, 2023 and the tentative map expired in
December 2022. Marketing material indicated the Buyer will need to amend the development plan from 40 attached to
attached housing apartment units, with will require a 10% affordable housing requirement. The site is currently in an unimproved condition and will be delivered "as is, where is." Coastal Meadows

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Bradley J. Dandridge, Fire Chief

DATE: April 15, 2025

SUBJECT: Introduction of an Ordinance Designating Fire Hazard Severity Zones in the City of Santa Maria

Description:

The City Council will conduct the first reading and introduction of an ordinance designating Fire Hazard Severity Zones in the City of Santa Maria.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

1. Conduct the first reading and introduce an Ordinance designating Fire Hazard Severity Zones in the City of Santa Maria; and

2. Set for adoption at the next regular City Council meeting.

BACKGROUND:

Pursuant to California Government Code §51175, the State Fire Marshal shall identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas.

Within 30 days after receiving a transmittal from the State Fire Marshal that identifies fire hazard severity zones pursuant to California Government Code §51175, a local agency shall make the information available for public review and comment. The information shall be presented in a format that is understandable and accessible to the general public, including, but not limited to, maps.

DISCUSSION:

On February 7, 2025, the Office of the State Fire Marshal began a phased rollout of new fire hazard severity designations for local governments. The map uses the best available science to identify certain factors, such as vegetation, slope, terrain, and wind, that drive the spread of wildfires. The map identifies fire hazard, the likelihood of a fire without mitigation measures, not the potential damage to an area (commonly referred to as fire risk).

On March 10, 2025, the Office of the State Fire Marshal published the “City of Santa Maria – Santa Barbara County Local Responsibility Area Fire Hazard Severity Zones” (“Fire Hazard Severity Zones Map”) map. Pursuant to California Government Code §51175, the City, on March 21, 2 025, posted information about the new fire hazard severity designations and a copy of the Fire Hazard Severity Zones Map on its website. The map designated a small area in the northeast portion of the City near the Santa Maria River, and another small area in the southwest portion of the City near the Santa Maria Airport as Moderate Fire Hazard Severity Zones.

California Government Code §51175 requires the City to designate by ordinance moderate, high, and very high severity zones within its jurisdiction within 120 days of receiving recommendations from the State Fire Marshal.

Alternative(s)
Adoption of the Fire Hazard Severity Zones Map is required by California Government Code §51175. Should the City not adopt the map, it would be non-compliant.

Fiscal Considerations
No known fiscal impacts to the City or residents.

Impact to the Community
The areas identified on the Local Responsibility Area Fire Hazard Severity Zones map as identified by the State Fire Marshal are developed or unbuildable and therefore no impacts are expected to the City or the residents.

Attachments:

A. Ordinance – Fire Hazard Severity Map
Exhibit A to the Ordinance – Fire Hazard Severity Map

Attachment A

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

DESIGNATING FIRE HAZARD SEVERITY

ZONES IN THE CITY OF SANTA MARIA

WHEREAS, the Office of State Fire Marshal on February 7, 2025, began a phased rollout of new fire hazard severity designations for local governments; and

WHEREAS, on March 10, 2025, the Office of State Fire Marshal p ublished the “City of Santa Maria - Santa Barbara County Local Responsibility Area Fire Hazard Severity Zones” Map (“Fire Hazard Severity Zones Map”); and

WHEREAS, pursuant to California Government Code §51175 et seq., impacted jurisdictions must complete several statutorily required actions; and

WHEREAS, on March 21 , 2025, pursuant to California Government Code §51178.5, the City of Santa Maria (“City”) posted information about the new fire hazard severity designations and a copy of the Fire Hazard Severity Zones Map on its website; and

WHEREAS, California Government Code §51179 requires the City to designate by Ordinance, moderate, high, and very high severity zones within its jurisdiction within 120 days of receiving recommendations from the State Fire Marshal; and

WHEREAS, the City wishes to adopt the Fire Hazard Severity Zones Map as recommended by the Office of State Fire Marshal.

NOW, THEREFORE, IT IS HEREBY ORDAINED by the City Council of the City of Santa Maria, State of California, as follows:

SECTION 1. The City Council finds that the above recitals are true and correct and incorporated herein by reference; and

SECTION 2. The City Council hereby designates the Fire Hazard Severity Zones as recommended by the California Department of Forestry and Fire Protection pursuant to Government Code § 51178, without modification. The “City of Santa Maria - Santa Barbara County Local Responsibility Area Fire Hazard Severity Zones” Map, dated March 10, 2025, attached as E xhibit A to this Ordinance, is adopted by the City Council, and hereby incorporated by reference . The official Map is also located electronically on the City’s website at: ___________________; and

2 SECTION 3. Pursuant to California Government Code § 51179(c) a copy of this Ordinance shall be transmitted to the State Board of Forestry and Fire Protection within thirty days of adoption. The City Clerk shall post a notice at the office of the county recorder, county assessor, and county planning agency identifying the location of the Fire Hazard Severity Zones Map in accordance with Government Code §51179(g); and

SECTION 4. This Ordinance is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State guidelines Section 15060(c)(3), no environmental review is required; and

SECTION 5. The Chief Deputy City Clerk is hereby authorized to make m inor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary; and

SECTION 6. This Ordinance shall be in full force and effect thirty (30) days after its passage. Within fifteen days following its p assage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within 15 days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.

///

3 INTRODUCED at a regular meeting of the City Council held on the ______ day of ________ 2025, and PASSED AND ADOPTED at a regular meeting held on the _____ day of ______ 2025, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

Attachment: Exhibit A: City of Santa Maria - Santa Barbara County Local Responsibility Area Fire Hazard Severity Zones Map, dated March 10, 2025
City and County boundaries as of 10/22/24 (CA Board of Equalization) CAL FIRE State Responsibility Areas (SRA25_1)
CAL FIRE Fire Hazard Severity Zones (FHSZSRA23_3, FHSZLRA_25_1) Data Sources:

Daniel Berlant, State Fire Marshal, CA Department of Forestry and Fire Protection Joe Tyler, Director/Fire Chief, CA Department of Forestry and Fire Protection Wade Crowfoot, Secretary for Natural Resources, CA Natural Resources Agency Gavin Newsom, Governor, State of CaliforniaThe State of California and the Department of Forestry and Fire Pr
otection make no representations or warranties regarding the accuracy of data or maps. Neither the State nor the Department shall be liable under any circumstances for any direct, special, incidental, or consequential damages with respect to any claim by any user or third party on account of, or arising from, the use of data or maps. and other relevant factors including areas where winds
ha
ve been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.
statewide criteria and based on the severity of fire hazard that is e
xpected to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, Government Code section 51178 requires the State Fire
Mar
shal to identify areas in the state as moderate, high,
and very high fire hazard severity zones based on consistent Waterbody
Unzoned LRA
Incorporated City
Projection: NAD 83 California Teale Albers
Scale: 1:59,000 at 1
1" x 17"
0 1 2 3 4Km
0 1 2 3Mi
Very High High Moderate
High Moderate
Fire Hazard Severity Zones (FHSZ) in Local Responsibility Area (LRA), as Identified b
y the State Fire Marshal
Santa Maria
S Broadway
101
135
166

UNINCORPORATED

SAN LUIS
OBISPO CO.

UNINCORPORATED
SANTA BARBARA CO.

S A N L U I S
O B I S P O C O .

S A N T A
B A R B A R A C O .

S A N L U I S O B I S P O C O .

S A N T A B A R B A R A C O .

March 10, 2025
As Identified by the
S
tate Fire Marshal
Local Responsibility Area
Fire Hazard Se
verity Zones
CITY OF SANTA MARIA – SANTA BARBARA COUNTY
Fire Hazard Severity Zones in State Responsibility
Area (SRA), Ef
fective April 1, 2024
Exhibit A

Santa Maria City CouncilApril 15, 2025

Santa Maria City Council
April 15, 2025