SF PUC Property Appraisal.pdf — South San Francisco City Council, April 26, 2023

_________________________________________________________________________________________________________ Associated Right of Way Services, Inc.
2300 Contra Costa Blvd., Suite 525
Pleasant Hill, CA 94523
925.691.8500
No. 22051
Appraisal Report
for
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane SFPUC Property
Portions of Mission Road and Antoinette Lane
South San Francisco, CA
Prepared by:

Erik Woodhouse, MAI, R/W-AC
Senior Appraiser
October 2022
2300 Contra Costa Blvd.

Suite 525
Pleasant Hill, CA 94523
925.691.8500 phone
925.691.6505 fax
www.arws.com
October 4, 2022
Jacob Gilchrist
Director of Capital Projects
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080
Re: Acquisition of Portions of Mission Road and Antoinette Lane Owner: SFPUC
Property Address: Portions of Mission Road and Antoinette Lane, South San Francisco, CA
Dear Mr. Gilchrist:

In accordance with our contract with the City of South San Francisco, an appraisal has been made of the fair market value of the property rights proposed to be acquired from the above portions of Mission Road and Antoinette Lane and small additional fee-owned areas outside of the two roadways, as requested. The proposed property interests to be acquired include the underlying fee simple interests in these two parcels. The final valuation conclusion is included in the following report.

This Appraisal Report is prepared in conformance with the Uniform Standards of Professional Appraisal Practice, Standard Rule 2-2(a). This report contains a description of the subject property, the property rights to be acquired, a valuation conclusion for the property to be acquired and an estimate of fair market value. I have completed an inspection of the subject, gathered pertinent information, sales and other data relevant to the valuation and analyzed the data to reach my conclusions. I inspected the subject parcels and surrounding environment on August 25, 2022. A representative of the property owner, Brian Morelli, accompanied me on the inspection. The date of value is the date of the site inspection.

The opinion of the fair market value of the property interests considered for acquisition for the project is as shown in the following Summary of Salient Facts and Estimate of Fair Market Value, which is made a part of this transmittal letter and appraisal report. The accompanying report is submitted for your review and approval for acquisition purposes and is subject to the Assumptions and Limiting Conditions included herein.

Sincerely,
Erik Woodhouse, MAI, R/W-AC
State Certified General Appraiser
CA License No. AG034630
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
Summary of Salient Facts and Estimate of Fair Market Value Date of Valuation: August 25, 2022 (date of site visit) Assessor's Parcel Number: None Assigned
Property Location/Address: Portions of Mission Road and Antoinette Lane, South San Francisco, CA
Owner: SFPUC
Owned Since: Over five years
Occupied By: Public street improvements and vacant land Total Site Area:

Mission Road Parcel Total Area: 31,548
Within Right of Way or Adjacent to Park-Zoned Land 31,548 Nominal $2,500 Not Within Right of Way or Adjacent to Park-Designated Land 792 x $210 x 25% $41,580 $44,080
Antoinette Lane Parcel Total Area: 13,954
Within Right of Way or Adjacent to Park-Zoned Land 13,118 Nominal $2,500 Not Within Right of Way or Adjacent to Park-Designated Land 836 x $225 x 25% $47,025 $49,525
Total Fee Simple Value $93,605
Rounded $94,000
Estimated
Value
% of Value due
to Utility in
Assembly
Area Size (s.f.)
Mission Road
Within Right of Way or Adjacent to Park-Zoned Land 31,548 Not Within Right of Way or Adjacent to Park-Designated Land 792 Total 32,340
Antoinette Lane
Within Right of Way or Adjacent to Park-Zoned Land 13,118 Not Within Right of Way or Adjacent to Park-Designated Land 836 Total 13,954
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
right of way areas zoned ECR/C-MXH – El Camino Real
Mixed-Use, High Density
General Plan: Mission Road: Portion not assigned; portions designated High-Density Residential
Antoinette Lane: Portion not assigned, portions
designated El Camino Real Mixed-Use North, High
Intensity
El Camino Real-Chestnut Avenue Mission Road: Portion in publicly traveled right of way Area Plan Land Use Designations: areas not designated *, Portion outside publicly traveled right of way areas designated High-Density Residential
and Park and Recreation
Antoinette Lane: Portion in publicly traveled right of
way areas not designated *, Portion outside publicly
traveled right of way areas designated El Camino Real
Mixed-Use North, High Intensity
* See Extraordinary Assumptions
Highest and Best Use
As Vacant: Mission Road: 792 square feet outside of existing public right of way have a highest and best use for
assembly with the adjacent parcel to the southwest;
remaining area has no economic use potential.

Antoinette Lane: 836 square feet outside of existing
public right of way have a highest and best use for
assembly with the adjacent parcel to the southwest;
remaining area has no economic use potential.

Flood Hazard Information: Flood Zones X and A, Map Nos. 06081C0037E and 06081E0041E, dated October 16, 2012
Earthquake Information: Not located in an Earthquake Fault Zone The intent of this appraisal assignment is to conduct an investigation approximating the thoroughness that a typical buyer would conduct when considering similar property on the open market in the subject’s neighborhood and competing markets, and in conformance with the necessary policies and techniques used by appraisers in developing an estimate of fair market value.

An inspection of the subject was conducted to determine the size, condition and utility of the property. However, since the underlying subject land is predominantly comprised of portions of public roadway right of way areas that legally and physically are impractical to develop independently for any marketable purpose, the value of the land has been estimated by applying a modified version of the Sales Comparison Approach, considering the contributory value of both City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
areas in assembly with the adjacent parcels. Therefore, the adjacent properties were also inspected to determine the size, condition and utility of these adjacent sites. The conclusion of value for the Sales Comparison Approach is determined following appropriate adjustments to properties that have sold and are similar to the parcel adjacent to the subject areas being appraised, considering the unit prices paid in the market for this type of property. The concluded unit land value has been used to value the areas being appraised. The Income and Cost Approaches are not considered applicable to this assignment since the approaches do not typically apply to the valuation of land.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
Subject Location Map
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
Table of Contents

LETTER OF TRANSMITTAL

SUMMARY OF SALIENT FACTS AND ESTIMATE OF FAIR MARKET VALUE

SUBJECT LOCATION MAP
INTRODUCTION.....................................................................................................................................1 PURPOSE OF THE APPRAISAL ..................................................................................................................1 SCOPE OF ASSIGNMENT .........................................................................................................................1 INTENDED USE OF THE APPRAISAL...........................................................................................................1 CLIENT AND INTENDED USER OF THE APPRAISAL .......................................................................................1 DATE OF VALUATION ..............................................................................................................................1 PROPERTY INTEREST APPRAISED ............................................................................................................2 MARKET VALUE DEFINED........................................................................................................................2 REASONABLE EXPOSURE TIME................................................................................................................2 CERTIFICATION OF APPRAISER ................................................................................................................3 ASSUMPTIONS AND LIMITING CONDITIONS ................................................................................................5 PROJECT ASSUMPTIONS AND LIMITING CONDITIONS ..................................................................................6 HYPOTHETICAL CONDITIONS ...................................................................................................................7 EXTRAORDINARY ASSUMPTIONS..............................................................................................................7 GENERAL INFORMATION.....................................................................................................................9 REGION, CITY AND NEIGHBORHOOD DATA ................................................................................................9 REAL ESTATE MARKET CONDITIONS ......................................................................................................10 Residential Market........................................................................................................................................ 13 Commercial Market ...................................................................................................................................... 16 Retail Market................................................................................................................................................ 16 SUBJECT PARCEL INFORMATION.....................................................................................................18 SUBJECT PROPERTY DATA SUMMARY ....................................................................................................18 PROPERTY DESCRIPTION......................................................................................................................25 TITLE AND PROPERTY HISTORY .............................................................................................................26 Existing Easements...................................................................................................................................... 26 FLOOD HAZARD INFORMATION...............................................................................................................27 EARTHQUAKE INFORMATION..................................................................................................................28 ENVIRONMENTAL ASSESSMENT .............................................................................................................28 LAND USE ...........................................................................................................................................28 HIGHEST AND BEST USE ANALYSIS ........................................................................................................34 VALUATION .........................................................................................................................................37 VALUATION METHODOLOGY ..................................................................................................................37 VALUATION, MISSION ROAD PARCEL......................................................................................................38 Sales Data Summary.................................................................................................................................... 39 Sales Data Analysis...................................................................................................................................... 54 Land Value Conclusion, Parcel Adjacent to Mission Road:............................................................................. 56 Discount due to Assemblage Highest and Best Use....................................................................................... 56 Value Conclusion, Mission Road Parcel ........................................................................................................ 58 VALUATION, ANTOINETTE LANE PARCEL .................................................................................................58 Land Value Conclusion, Parcel Adjacent to Antoinette Lane:.......................................................................... 59 Discount due to Assemblage Highest and Best Use....................................................................................... 60 Value Conclusion, Antoinette Lane Parcel..................................................................................................... 60 TOTAL FAIR MARKET VALUE, MISSION ROAD AND ANTOINETTE LANE PARCELS .......................................... 61 City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC

MAPS AND EXHIBITS
ASSESSOR’S PARCEL MAP....................................................................................................................20 APPRAISAL MAP OF AREAS TO BE ACQUIRED ..........................................................................................21 SUBJECT AERIAL PHOTOGRAPH.............................................................................................................22 SUBJECT PROPERTY PHOTOGRAPHS .....................................................................................................23 ZONING MAP .......................................................................................................................................31 GENERAL PLAN MAP ............................................................................................................................32 EL CAMINO REAL-CHESTNUT AVENUE AREA PLAN MAP ...........................................................................33 COMPARABLE LAND SALE DATA SHEETS AND PARCEL MAP......................................................................41

ADDENDA

LITIGATION GUARANTEE

APPRAISER QUALIFICATIONS
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
1 Introduction
Purpose of the Appraisal
The purpose of this appraisal is to furnish an opinion of the fair market value of the underlying fee simple interest in the portions of Mission Road and Antoinette Lane, which are proposed to be acquired from SFPUC by the City of South San Francisco. Although the interests in these areas extend slightly outside of the respective public right of way areas, for the purpose of this appraisal report, the parcels are referred to as the Mission Road parcel and the Antoinette Lane parcel, respectively.

Scope of Assignment
The subject property was inspected to determine the size, condition, and utility of the underlying land and existing improvements and/or encumbrances. Searches of public records, real estate listings and sales services were employed to obtain data. Analysis of market conditions was completed, both general and specific to the market. Market participants were interviewed.

Relevant property sales were researched and confirmed to the extent possible. The data is set out in the property valuation section.

The Appraisal Report conforms to Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice. The information contained in this report is specific to the needs of the Client and for the intended use stated in this report. I am not responsible for unauthorized use of this report. The intent of this report is to provide sufficient data and analysis so as to have no misleading information and a conclusion of value of high reliability.

Intended Use of the Appraisal
The intended use of the appraisal and report is to provide the City of South San Francisco with a basis for determining fair market value to be offered and payable to the property owner for the proposed acquisition parcels. The appraisal report is subject to administrative review by the Client.

Client and Intended User of the Appraisal
The Client and the intended user of this appraisal report is the City of South San Francisco.

Date of Valuation
The property in this report has been valued as of August 25, 2022. The date of value is the date of the site inspection.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
2 Property Interest Appraised
This appraisal addresses the fee simple estate in the subject property. The fee simple estate is defined as follows:
“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.” (The Dictionary of Real Estate Appraisal, Sixth Edition, published by the Appraisal Institute) Market Value Defined
(California Code of Civil Procedure, Section 1263.320)
“(a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
(b) The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable.”
Reasonable Exposure Time
Uniform Standards of Professional Appraisal Practice (USPAP 2020/2021 edition: Definitions) defines exposure time as follows:
“EXPOSURE TIME: an opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.”
Exposure time is presumed to be a reasonably adequate and sufficient period of time with adequate effort necessary to result in a sale fulfilling the definition of value. It is presumed to be a period immediately preceding the effective date of value. However, based on the definition of market value under the Code of Civil Procedure cited above, developing an opinion of exposure time is not required. Therefore, an opinion of exposure time has not been developed for this appraisal.

USPAP’s 2020-21 edition is effective through December 31, 2022.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
3 Certification of Appraiser
I hereby certify that to the best of my knowledge and belief:

I have personally inspected the property that is the subject of this report.

The statements of fact contained in the appraisal report are true and correct, and the information upon which the opinions expressed therein are based is correct; subject to the Limiting Conditions therein set forth.

I understand that such appraisal may be used in connection with the proposed acquisition of the entire subject property to be acquired by City of South San Francisco; that such appraisal has been made in conformity with the appropriate State laws, regulations, policies and procedures applicable to the appraisal of right of way for such purposes; and that to the best of my knowledge, no portion of the value assigned to such property consists of items which are non-compensable under the established law of the State of California.

Neither my employment nor my compensation for completing this assignment is in any way contingent upon the values reported herein. My compensation is not contingent upon the developing or reporting of predetermined values or direction in value that favors the cause of the Client, the amounts of the value opinions, the attainment of a stipulated result or the occurrence of a subsequent event directly related to the intended use of this appraisal.

I have not revealed the findings and results of such appraisal to anyone other than the proper officials of the acquiring agency and I will not do so until so authorized by said officials, or until I am required to do so by due process of law, or until I am released from this obligation by having publicly testified as to such findings.

I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

I have performed no services as an Appraiser or in any other capacity, regarding the property that is the subject of this report, within a three-year period immediately preceding the acceptance of this assignment.

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

The reported analyses, opinions, and conclusions are limited only by the reported Assumptions and Limiting Conditions, and are my own personal, impartial, unbiased professional analyses, opinions, and conclusions.

Any decrease or increase in the fair market value of the subject real property prior to the date of valuation caused by the project or improvements for which the subject property is acquired, or by the likelihood that the property would be acquired for such project or improvements, other than due to physical deterioration within the reasonable control of the owner, has been disregarded in appraising the subject property.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
4 The reported analyses, opinions, and conclusions were developed, and this report, to the best of my knowledge and belief, has been prepared in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which includes the Uniform Standards of Professional Appraisal Practice (USPAP).

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute, the International Right of Way Association and the California Bureau of Real Estate Appraisers.

The opinion of fair market value for the proposed acquisition of the entire subject property as of the date of valuation is set forth in the Summary of Salient Facts and Estimate of Fair Market Value and is based upon my independent appraisal and the exercise of professional judgment.

Joe Castellanos provided assistance with confirmation of some of the comparable sale data used for this report, as well as general market research and the writing of portions of this report. No one else provided significant real property assistance to the person signing this certification.

I hereby certify that my opinion of the market value of the property appraised as described in this report is included herein and that my opinions and conclusions were made subject to the Assumptions and Limiting Conditions in this report and without collusion, coercion or direction from anyone as to value.

October 4, 2022
Date Erik Woodhouse, MAI, R/W-AC
State Certified General Appraiser
CA License No. AG034630
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
5 Assumptions and Limiting Conditions
The following Assumptions and Limiting Conditions have been relied upon and used in making this appraisal and estimating the respective values required for the purpose of the appraisal and its intended use.
• No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable, unless otherwise stated in this report. • The property is appraised free and clear of any or all liens and encumbrances, unless otherwise stated in this report.
• Responsible ownership and competent property management are assumed, unless otherwise stated in this report.
• The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.
• Sketches, plat maps, or photographs contained in this report are included to assist the reader in visualizing properties and no survey has been made of the property by the Appraiser.
• No responsibility is assumed for discovery of hidden or non-apparent conditions of the property, subsoil, or the structures that render it more or less valuable. Encroachment of real property improvements is assumed to not exist. No responsibility is assumed for arranging for engineering studies or a survey, which may be required to discover these conditions.
• It is assumed that the subject is in full compliance with all applicable Federal, State, and local environmental regulations and laws, unless otherwise stated in this report. • It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined, and considered in this report.
• It is assumed that all required licenses, certificates of occupancy, or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been, or can be, obtained or renewed for any use on which the value conclusions contained in this report are based.
• The Appraiser is not a soil expert. The existing soil and substructure has been assumed adequate for existing or proposed uses unless contrary information is provided and contained in this report. It is advisable to have a soil analysis and report completed by a qualified soil engineer, or other qualified expert, so that any interested party will become knowledgeable as to the important soil information including seismic data, soil contaminants, type of fill, if any, or other relevant matters.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
6 • Unless otherwise stated in this report, it is assumed that there are no hazardous or toxic substances in the soil comprising the subject land.
• Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature and would restrict access by disabled individuals may adversely affect the property’s values, marketability, or utility.
• The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used.
• Possession of this report, or a copy thereof, does not carry with it the right of publication.

It may not be used for any purpose by any person other than the party to whom it is addressed without the written prior consent of the Appraiser, and in any event, only with proper written qualification and only in its entirety.
• The delivery and/or possession of this report does not require the Appraiser to attend or give testimony at any meeting, public hearing, pretrial conference, deposition or court trial unless there is a written agreement between the Appraiser and the party possessing or relying on this report or requesting such services.
• Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the Appraiser, or the firm with which the Appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media.

Project Assumptions and Limiting Conditions
• A litigation guarantee for the subject property was reviewed and is displayed in the Addenda of this report. The Appraiser relied on information contained in the report including the ownership, legal description of the larger parcel, and title exceptions. • The Appraiser relied on public records, assessor’s parcel maps, and/or exhibits provided by the Client to determine the location, size, and shape of the subject property. Property boundaries were not staked by survey.
• The Appraiser relied on appraisal maps prepared by and obtained from the Client. These exhibits are integral to this appraisal and provide size, location and a description of the areas to be acquired.
• The Jurisdictional Exception Rule of the Uniform Standards of Professional Appraisal Practice (USPAP) is invoked where the USPAP requirements conflict with federal or state City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
7 laws relating to appraisals for the acquisition of real property by public agencies. The exceptions include:
o Disregarding the proposed public project as required by California Code of Civil Procedure Section 1263.330, which contradicts Standards Rule 1-2(e) because the effects of the public project and proposed acquisitions on the subject’s property value are being ignored.
o The exclusion of comparable data involving acquisitions by public agencies having the power of eminent domain, listings and offers, assessed values, and appraising any property or property interest other than that being valued, in conformance with Evidence Code Section 822. This may conflict with Standards Rule 1-4, which requires the appraiser to collect, verify and analyze all information necessary for credible assignment results and further specifies that the appraiser analyze such comparable sales data as are available to indicate a value conclusion.

Hypothetical Conditions
Uniform Standards of Professional Appraisal Practice (USPAP 2020/2021 edition: Definitions) defines hypothetical condition as follows:
“HYPOTHETICAL CONDITION: a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.

Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.”
The following hypothetical conditions are used for this appraisal and may affect the assignment results:
• The before condition analysis of the subject of this appraisal is made under the hypothetical condition that the project and steps leading up to the project do not exist.

USPAP’s 2020-21 edition is effective through December 31, 2022.

Extraordinary Assumptions
Uniform Standards of Professional Appraisal Practice (USPAP 2020/2021 edition: Definitions) defines extraordinary assumptions as follows:
“EXTRAORDINARY ASSUMPTION: an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
8 false, could alter the appraiser’s opinions or conclusions.

Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.” The following extraordinary assumptions are used for this appraisal and may affect the assignment results:
• According to Tony Rozzi, Chief Planner of the City of South San Francisco Planning Department, public street areas do not have a zoning designation in South San Francisco.

However, the street areas are shown on the City’s zoning map and El Camino RealChestnut Avenue Area Plan as having land use designations. It is an Extraordinary Assumption of this report that portions of the parcels being appraised that are located withing publicly-traveled right of way areas are not zoned.

USPAP’s 2020-21 edition is effective through December 31, 2022.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
9 General Information
Region, City and Neighborhood Data
The subject property is located in the City
of South San Francisco, within San Mateo
County. San Mateo County is one of the
nine counties comprising what is known
as the San Francisco Bay Area. San
Mateo County was formed from parts of
San Francisco County and Santa Cruz
County in 1856. San Mateo County totals
roughly 744 square miles (293 square
miles are covered by water) and makes up
most of the San Francisco Peninsula that
extends from the San Francisco Bay
shoreline to the hillsides of the Santa Cruz
Mountains and neighboring Santa Clara
County. The county is geographically
divided by the Santa Cruz Mountains with
most development occurring along the
eastern, or bay, side. The majority of San
Mateo’s coastline is occupied by state
beaches and has limited development
potential due to state regulation. Industry is situated closest to the bay along the El Camino Real/Highway 101 Corridor, with pockets of commercial and residential areas stretching westward into the foothills. The California Department of Finance estimates San Mateo County’s population at 744,662 people as of January 2022, which represents a 0.9% decrease from the estimated population posted a year prior.

There are 20 incorporated cities in San Mateo County, including the City of South San Francisco, where the subject is located. South San Francisco covers approximately 9.20 square miles of land situated toward the northern part the San Francisco Peninsula, and about 21 square miles of water. It is bounded by San Bruno Mountain State Park to the north, the City of San Bruno to the south, the San Francisco Bay to the east, and Daly City and Milagra Ridge open space to the west. The city combines residential uses and industrial and commercial elements in a largely urban environment. After South San Francisco’s incorporation in 1908, industry remained the city's main economic focus through the 1950s. In the latter half of the 20th Century major manufacturers closed, and new development was focused on office parks, housing, high-rise hotels, and yacht harbors. The biotechnology giant Genentech originated in South San Francisco in 1976, leading to the City's identity as "the birthplace of biotechnology.” South San Francisco population growth has tapered off from previous years to a population of 64,492 according to 2022 estimates provided by the California Department of Finance. South San Francisco is the fourth largest city in the county.

South San Francisco and San Mateo County benefit from a number of freeways, arterials, and expressways that provide access to most areas of the region. The primary transportation corridors City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
10 that pass through South San Francisco include Interstate 280, U.S. Highway 101, and State Route

82. Caltrain rail transportation, Bay Area Rapid Transit (BART), SamTrans bus services, and the San Francisco Bay Ferry provide mass transit for the city and greater Bay Area region, while the San Francisco International Airport is located adjacent the city limits to the south.

The subject property is located in a mixed-use corridor of the city west of the Downtown area.

The subject’s mixed-use neighborhood is confined by El Camino Real to the south and Mission Road to the north. The mix of uses in the neighborhood includes health services, multi-family residential complexes, industrial yards, open space and public transit centers.

Real Estate Market Conditions
Since March 2020, the world has been dealing with the spread of the coronavirus, COVID-19, a global pandemic. In the initial stages of the outbreak the economy experienced a significant downturn, with most major markets declining by as much as 20%. Most COVID-19 related restrictions were lifted in mid-2021 throughout the state, with approximately half of Californians vaccinated at that time. The progression of COVID-19 continues with a reemergence through multiple variants, but scientists are predicting that COVID-19 will likely shift from a pandemic to an endemic.

COVID-19’s toll on the nation’s economy became emphatically clearer with the Bureau of Economic Analysis’s (BEA) estimate of real gross domestic product (GDP) for the second quarter 2020, which decreased at an annual rate of 31.4%, after a decline of 5.0% in the first quarter 2020. Real gross domestic product (GDP) is a comprehensive measure of economic activity and the most popular indicator of the nation's overall economic health. According to the Commerce Department, the most devastating three-month collapse on record in the second quarter 2020 almost wiped away nearly five years of growth as consumers cut back spending, businesses pared investments, and it would have been even more severe without trillions of dollars in government aid to households and businesses. The attempt to freeze the economy and defeat the virus had not produced the rapid rebound that many envisioned, and a surge in coronavirus cases and deaths across the country in the second quarter of 2020 led to a renewed pullback in City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
11 economic activity, reflecting consumer unease and renewed shutdowns. Fortunately, a recovery started in the following quarter. According to the BEA’s third estimate, third quarter (Q3) 2020 GDP increased at an annual rate of 33.4%, the largest single quarter of economic growth on record. This rebound recovered two-thirds of the economic output lost due to the pandemic during the first half of the year and brought the economy back to only 3.5 percentage points below its pre-pandemic level (see graph displayed previously).

To start 2021, widespread vaccinations and government spending helped bring the U.S. closer to where it was before the COVID-19 pandemic struck, the Commerce Department reported. Firstquarter GDP for 2021 increased at a rate of 6.3%, followed by 6.7% in Q2 2021. The increase in GDP in Q1 2021 was the second-fastest pace for growth since the second quarter of 2003 and exceeded only by the reopening-fueled burst in Q3 2020, that was until Q2 2021 saw a GDP increase of 6.7%. The increase in GDP in the first half of 2021 reflected the continued economic recovery influenced by the reopening of establishments, and the unending government response related to the COVID-19 pandemic. A lower GDP increase of 2.3% in Q3 2021 was the result of the continued economic impact of COVID-19 with a resurgence of COVID-19 cases. The U.S. economy grew more-than-expected to end 2021. Despite signs that the acceleration would likely tail off toward the end of the year, Q4 2021 GDP increased at a 6.9% annualized pace influenced by sizeable boosts in inventories and consumer spending.

GDP contracted for the first half of 2022, decreasing at an annual rate of 1.6% in Q1 2022 and

0.6% in Q2 2022, according to the “second” estimate. Q1 2022 was the first decline recorded since the major losses of Q2 2020. The decline in GDP for the most recent three-month period came from a broad range of factors, including decreases in inventories, residential and nonresidential investment, and government spending at the federal, state and local levels.

Consumer spending, as measured through the personal consumption expenditures price index, increased 7.1% for Q2 2022 as inflation accelerated. Inflation is at the root of much of the economy’s troubles in 2022. According to Freddie Mac, the average 30-year mortgage rate nationally has increased to 6.29% with 0.9 points as of September 22, 2022, from a low of 2.65% and 0.7 points as of January 7, 2021. The Federal Funds Rate target rate has increased from a range of 0%-0.25% as of March 2020 to its current range of 3.00%-3.25%, with more increases anticipated.

The Conference Board Consumer Confidence Index (CCI) is a barometer of the health of the U.S. economy from the perspective of the consumer. The index is based on consumers’ perceptions of current business and employment conditions, as well as their expectations for six months regarding business conditions, employment conditions, and income. The CCI increased for the second month in a row as of September 27, 2022; the Index now stands at 108, whereas 100 is the benchmark. The Conference Board sites improvements across jobs, wages, and declining gas prices as the leading influences on increasing CCI. Concerns about inflation have somewhat dissipated, however purchasing intentions were mixed, with intentions to buy automobiles and big-ticket appliances rose, while home purchasing intentions fell as a reflection in rising mortgage rates and a cooling housing market. According to the Conference Board, “…inflation and interestrate hikes remain strong headwinds to growth in the short term.” City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
12 Global stock markets initially suffered dramatic falls due to the COVID-19 pandemic, and the Dow Jones Industrial Average (DJIA), one of the most closely watched U.S. benchmark indices tracking targeted stock market activity, reported its largest-ever single day decline of almost 3,000 points on March 16, 2020, beating its previous record of 2,300 points that was set only four days earlier. It had increased steadily since the end of the “Great Recession” to record-high levels but fell sharply in the later part of February 2020 after mounting coronavirus fears. Since the dips in February and March of 2020, the DJIA was on an upward trajectory through 2021, setting numerous all-time highs since the later part of 2020. The trajectory reversed direction in 2022, although still well above the losses seen in the initial stages of COVID-19. The recent losses in 2022 can be attributed to rising inflation and interest rate hikes.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
13 The unemployment rate is the most frequently cited indicator of labor market health, and data from the job market gives the picture of an economy that is continually recovering from the effects of COVID-19 (see graphic displayed below). For August 2022, the unemployment rate rose 0.2% to 3.7%. Nonfarm payroll employment rose by 315,000 jobs, according to the U.S. Bureau of Labor Statistics (BLS). Generally, the national unemployment rate has been on a downward trajectory after having spiked to 14.7%, when 870,000 jobs were lost in March 2020, followed by a record 20.5 million in April 2020, with much of the U.S. in self-imposed shutdown mode to prevent the spread of Covid-19. The job losses in those two months were by far the largest decline since the government began tracking the data in 1939, and amount to layoffs so severe, they more than doubled the 8.7 million jobs lost during the Great Recession and nearly wiped out the

22.8 million jobs gained over 10 years since the 2008 financial crisis. The last time American joblessness was that severe was the Great Depression, when the unemployment rate peaked at

24.9% in 1933, according to historical annual estimates from the BLS.

The improvements in the labor market starting in May 2020 reflect the continued resumption of economic activity that had been curtailed in March and April due to COVID-19 and efforts to contain it. For August 2022, notable job gains occurred in professional and business services, health care, and retail trade. With the unemployment rate at 3.7% and unemployed persons at 6 million, August unemployment rose just above levels seen prior to COVID-19 (3.5% and 5.7 million, respectively, in February 2020). The BLS indicates the increases in permanent job losses and the labor force participation rate as factors playing into the August increases in unemployment. The unemployment rate in San Mateo County was 2.1% (not seasonally adjusted) for August 2022, which compares with an unemployment rate of 4.1% for California for the same period.

Residential Market
Generally, housing is seen as one of the sectors to rise or fall as economic conditions improve or degrade. The California housing market ended 2020 on a high note, with the statewide median home price reaching record highs. That same momentum was carried forward in 2021, and in April, the median home price throughout the state reached above the $800,000 mark for the first time, according to the data released by the California Association of Realtors. While median home City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
14 prices are an imperfect measure of the current value of any individual home, they do provide important information regarding the overall health of residential real estate markets. For August 2022, the median sales price of existing homes statewide was $839,460, up 0.7% from July and up 1.4% from a year earlier. While the number of sales of existing homes increased by 6.1% and decreased 24.4%, respectively, for all of California over the same time periods. The tight inventory paired with high demand fueling California’s high home prices has begun to taper through 2022.

In San Mateo County, sales of single-family re-sale homes declined by 25.1% year-over-year in August 2022 with 283 homes sold, according to MLSListings source data. Comparatively, the monthly average since 2000 is 398. August marked the twelfth month in a row that home sales were lower than the year before.

At $1,950,000, the median sales price for single-family, re-sale homes in San Mateo County in August 2022 rose 1.6% compared to last year. The chart displayed below shows the trend for median home sales prices in San Mateo County over the last four years (by month) through August 2022.

There were 417 homes for sale in San Mateo County, as of September 5th, while the average since 2000 is 1,287. The inventory of single-family re-sale homes was up, increasing by 27.1% City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
15 compared to last year. At the current rate of sales, it would take 44 days to sell all homes listed for sale compared to 27 days year over year.

CoreLogic provides the California Home Sale Activity by City report for August 2022 which reports on re-sale single-family homes, condos, and new homes. There was a total of 528 sales in San Mateo County with a median sale price of $1,500,000, no change year over year. In addition to county level data, median sales price and change for incorporated cities within the county can be a strong indicator of market trends in the subject area. 42 sales were recorded in South San Francisco in August of this year with a median sale price of $1,180,000, a 1.7% decrease year over year. The median sales price for the neighboring city of San Bruno increased by 13.3% year over year with the average sale price of 26 sales at $1,312,500. Daly City, located north of the subject, recorded 51 sales with a median price of $1,100,000, a 4.8% increase year over year.

Data tables displaying basic trends of median home sales prices from August 2021 and August 2022 at county and city levels are summarized as follows.

According to the San Mateo County Real Estate September 2022 Report provided by Compass, general trends have shown recent home price appreciation rates and overbidding of homes on the market has dropped dramatically year over year, while number of days on the market has increased. Economic uncertainties have influenced many sellers, with the number of new listings on the market remaining much lower year over year. The overbidding of list prices has seen a dramatic decline. As of August 2022, 45% of sales have closed over final list price, compared to 86% of sales in March. Additionally, average sale prices compared to list price show that homes, townhouses, and condos combined have sold for 99% of the list price on average in August 2022 compared to 110% of the list price for February through March of 2022.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
16 Commercial Market
Cushman & Wakefield, in their San Mateo County Office & R&D Marketbeat Q2 2022, reported an increase in workers returning to the office full time or for portions of the week. Additionally, employment continued to climb throughout the San Francisco Peninsula metro division with 85,000 new jobs year over year. Office job growth has also increased dramatically with the San Mateo County market closed the second quarter of 2022 (2Q22) with a record 510,000 positions.

However, net absorption decreased in 2Q22 by negative 742,000 square feet (sf) primarily due to the delivery of new vacant constructions paired with large block vacant spaces outpacing move ins. This shift wiped out the 717,000 square feet of positive net absorption experienced in 1Q22.

Leasing activity decreased slightly to 1.1 million square feet (million square feet) in 2Q22, after the 1.8 million square feet gain of 1Q22 bringing the year-to-date gross absorption to 3.8 million square feet. Annual gross absorption across the last four quarters increased to 7.4 million square feet, nearly back to the pre-pandemic level of 7.9 million square feet seen in 2019.

San Mateo County’s office and R&D vacancy rate increased to 9.1% for 2Q22, up from 7.5% in 1Q22 and back to the 4Q21 level. Office space makes up 80% of the current vacancy rate.

Currently, there is approximately 3.4 million square feet of office space product under construction; South San Francisco has the most expected deliveries at 1.8 million square feet.

Across the county two office buildings totaling 278,583 square feet were completed in the past quarter, one of which is 100% vacant and the other only 72% occupied.

The average asking rent for office and R&D space in San Mateo County set a new high in 2Q22 at $6.60 per square foot on a monthly full-service basis from $6.36 per square foot recorded in the first quarter of 2022. R&D rents are up over the quarter at $6.86 per square foot on a monthly, triple net basis, from $6.50 per square foot in the first quarter. High end life science complexes continue to command the top rents in the market.

Retail Market
Based on the Kidder Mathews Peninsula/San Mateo Retail Market Report, retail markets across the Peninsula have experienced decreases in vacancy, unemployment, and rental rates while construction deliveries were on the rise for the second quarter of 2022. For 2Q22 new construction deliveries totaled 8,400 square feet while an additional 191,545 square feet were under construction. Vacancy rates fell year over year from 5.4% during 2Q21 to 4.9% for 2Q22. Average asking rents on a triple net basis decreased by 6.71% year over year from $39.62 per square foot City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
17 in 2Q21 down to $36.96 per square foot for 2Q22. Net absorption has also been on the rise across the San Francisco Peninsula since 2021. The 2Q22 square feet of net absorption was at 18,824, an increase from the 2Q21 value of 15,695 square feet. The graphics below give an overview of the retail market conditions for the dating back to 2012.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
18 Subject Parcel Information
Subject Property Data Summary
Assessor's Parcel Number: None Assigned
Property Location/Address: Portions of Mission Road and Antoinette Lane, South San Francisco, CA
Owner: SFPUC
Owned Since: Over five years
Occupied By: Public street improvements and vacant land Total Site Area:

Proposed Areas to be Acquired: Entire subject property
Zoning: Mission Road: Portion in publicly traveled right of way areas not zoned *, Portion outside publicly traveled right of way areas zoned ECR/C-RH - El Camino
Real/Chestnut Residential, High Density
Antoinette Lane: Portion in publicly-traveled right of
way areas not zoned *, Portion outside publicly-traveled right of way areas zoned ECR/C-MXH – El Camino Real
Mixed-Use, High Density
General Plan: Mission Road: Portion not assigned; portions designated High-Density Residential
Antoinette Lane: Portion not assigned, portions
designated El Camino Real Mixed-Use North, High
Intensity
El Camino Real-Chestnut Avenue Mission Road: Portion in publicly traveled right of way Area Plan Land Use Designations: areas not designated *, Portion outside publicly traveled right of way areas designated High-Density Residential
and Park and Recreation
Antoinette Lane: Portion in publicly traveled right of
way areas not designated *, Portion outside publicly
Area Size (s.f.)
Mission Road
Within Right of Way or Adjacent to Park-Zoned Land 31,548 Not Within Right of Way or Adjacent to Park-Designated Land 792 Total 32,340
Antoinette Lane
Within Right of Way or Adjacent to Park-Zoned Land 13,118 Not Within Right of Way or Adjacent to Park-Designated Land 836 Total 13,954
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
19 traveled right of way areas designated El Camino Real Mixed-Use North, High Intensity
* See Extraordinary Assumptions
Highest and Best Use
As Vacant: Mission Road: 792 square feet outside of existing public right of way have a highest and best use for
assembly with the adjacent parcel to the southwest;
remaining area has no economic use potential.

Flood Hazard Information: Flood Zones X and A, Map Nos. 06081C0037E and 06081E0041E, dated October 16, 2012
Earthquake Information: Not located in an Earthquake Fault Zone City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
20 Assessor’s Parcel Map
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
21 Appraisal Map of Areas to be Acquired
Mission Road
(South Half-Width)
Antoinette Lane
(South Half-Width)
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
22 Subject Aerial Photograph
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
23 Subject Property Photographs
Northwest-facing view of Mission Road. Subject is half-width on left.

Southeast-facing view of Mission Road.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
24 Subject Property Photographs
Southwest-facing view of Antoinette Lane. Subject is half-width on right.

Southwest-facing view of Antoinette Lane. Subject is half-width on right.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
25 Property Description
The subject property is comprised two remnant areas owned by the San Francisco Public Utilities Commission (SFPUC). The areas are predominantly located within the southwest half-widths of Mission Road and Antoinette Lane, respectively, and each area has small portions outside of the publicly traveled right of way areas. There are no Assessor’s Parcel Numbers (APN) assigned to either area. The subject area predominantly within Mission Road is adjacent to APN 093-312- 060, while the subject area predominantly within Antoinette Lane is adjacent to APN 093-312- 050.

The Mission Road area covers a total area of 32,340 square feet. Of this area, 28,061 square feet are encumbered by the southwest half-width of the road, which is 33 feet wide and approximately 1,000 in length between its southeast end and its northwest end at the intersection of Grand Avenue. Mission Road is an arterial roadway leading from Chestnut Avenue to the southeast to its intersection with El Camino Real to the northwest.

The Mission Road area is improved with two lanes of traveled roadway and curb and gutter improvements. A portion of the area is also improved with sidewalk, and other portions are within an open trench culvert and bicycle lanes. The portion of the Mission Road area outside of the publicly traveled right of way area covers a total of 4,279 square feet and is occupied by a portion of a concrete driveway and landscaping along Mission Road.

The Antionette Lane portion of the subject property covers a total area of 13,118 square feet. Of this area, approximately 11,079 square feet are located within the southwest half-width of the road, which is approximately 30 feet in width and 340 feet in length (scaled). Antoinette Lane is a small cul-de-sac roadway extending from Chestnut Avenue to the southeast to the northwest terminus of the parcel.

The Antoinette Lane portion of the subject property is improved with a single lane of traveled roadway, as well as curb and gutter improvements, which bulbs in a cul-de-sac at the site’s northwest end. The portion of the Antoinette Lane area outside of the publicly traveled right of way covers a total of 2,875 square feet and is predominantly vacant or improved with landscaping.

Since neither of these areas could feasibly be independently used for any economic purpose, their value is best measured based on the value of the adjacent parcels to the southwest, with which they would be assembled at their respective highest and best uses.

As described later in the Land Use section of this report, in the City of South San Francisco, allowable density is based on gross parcel area, and accordingly, if the parcel were assembled and given the same zoning designation as the adjacent parcel to the south, its area could be used to calculate density on that parcel, even if the street were required to be dedicated back to the City for roadway purposes. However, according to Tony Rozzi, Chief Planner with the City of South San Francisco, because the zoning and General Plan designation of the portions of the parcels within the publicly-traveled right of way areas differ from the land use designations of the adjoining parcels to the southwest, such a use of these areas would necessitate a rezoning and General Plan amendment to be consistent with the adjacent parcels to the southwest. Approval of these rezoning and General Plan amendments would be discretionary at the Planning City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
26 Commission level and unlikely to be granted given their ultimate continued use as a roadway, respectively.

Therefore, the portions of the parcels being appraised that are within existing public right of way areas are considered to have nominal economic use potential.

The remaining areas outside of the existing public right of way areas are analyzed based on their contributory value to adjacent parcels to the southwest, as previously described.

The site to the southwest of the Mission Road parcel is a 5.9-net acre site, net of a portion occupied by the Colma Canal which bisects the site. The parcel is owned by the City of South San Francisco, which had sought a development partner to construct a mixed-use housing and retail project on the site for several years. In 2019, the site was approved for development of 800 dwelling units, 20% of which would be affordable housing, an 8,000-square foot childcare facility, a 13,000-square foot market hall, and over 700 parking spaces. The parcel benefits from its location near the South San Francisco BART Station nearby to the northwest. It is mostly level and has all utilities available for development in adjacent streets.

The site to the southwest of the Antoinette Lane parcel is also owned by the City of South San Francisco and is currently being developed with a combined Library, Parks and Recreation/community theater/Council Chamber center and park. This development, which broke ground in January 2021, is part of South San Francisco’s three-phase Community Civic Campus project that will also ultimately include a new state-of-the-art police operations and 911 dispatch center and a new fire station. This site covers a total area of 1.13 acres, or 49,078 square feet, according to public records. It is level and triangular in shape, and all utilities necessary for development are available in adjacent streets.

Title and Property History
A litigation guarantee for the subject property was provided for review. The litigation guarantee was prepared by Old Republic National Title Insurance Company and dated May 21, 2021.

According to the title report reviewed, the subject's fee ownership is vested in the City and County of San Francisco.

The subject has been under the same ownership for more than five years and is not currently being offered for sale.

I am not aware of any leases or current offers to purchase the subject.

Existing Easements
Under Exception 4, the litigation guarantee references “…rights of the public, County and/or City, in and to that portion of said land lying within the lines of Mission Road, a portion now known as Antoinette Lane.”
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
27 The litigation guarantee does not indicate any other easements or encumbrances that would adversely affect the value or utility of either of the parcels comprising the subject property at their respective highest and best uses.

Flood Hazard Information
The subject property is in a mapped area designated to be in Flood Zones X and A by the Federal Emergency Management Agency (FEMA). Flood zone “X” is defined as areas of minimal flood hazard, usually depicted on FEMA Flood Insurance Rate Maps as above the 500-year flood level.

Flood zone “A” is defined as areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. The FEMA Flood Zone Map Panels are 06081C0037E and 06081E0041E and the effective date is October 16, 2012. A copy of the Flood Insurance Rate Map is included below.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
28 Earthquake Information
All properties in California are subject to some degree of seismic risk. The Alquist-Priolo special Studies Zone Act of 1972 was enacted by the State of California to regulate development near active earthquake faults. The Act required the State Geologist to delineate “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 investigation demonstrates that the sites are not threatened by surface displacement from future faulting.

According to the California Department of Conservation, California Geological Survey, the subject property is not located in an Earthquake Fault Zone as designated under the Alquist-Priolo Earthquake Fault Zoning Act. Related development limitations, therefore, do not apply.

Environmental Assessment
No environmental assessment regarding the subject property was provided for this assignment.

This appraisal assumes that no environmental remediation would be required.

Land Use
The zoning category for the portions of the Mission Road parcel within the publicly traveled right of way area is assumed not to have a zoning designation (see Extraordinary Assumptions). A small, 792-square foot portion of the Mission Road parcel at its northwesterly end has a zoning designation of El Camino Real/Chestnut Residential, High-Density. This use is consistent with the land use designation of the adjoining parcel to the southwest.

The zoning category for the portions of the Antoinette Lane parcel within the publicly traveled right of way area is assumed not to have a zoning designation (see Extraordinary Assumptions). The zoning category for portions of the Antoinette Lane parcel outside of the publicly traveled right of way area is El Camino Real Mixed-Use, High Density, consistent with that of the surrounding parcels.

According to the zoning section of the South San Francisco Municipal Code:
• The El Camino Real/Chestnut Residential, High-Density designation is intended to provide for high-density residential development in the form of high rises, fronted by townhomes at the ground level, close to the BART station. Active uses are required at the lower levels along Mission Road and Centennial Way Linear Park to maintain visual interest and promote safety along the public rights-of-way.
• The El Camino Real/Chestnut Mixed-Use, High-Density designation is intended to provide sites for mixed-use development at high intensities. The ECR/C-MXH sub-district requires active uses that are accessible to the general public, generate walk-in pedestrian clientele, and contribute to a high level of pedestrian activity on the ground floor, along streets, sidewalks, and bike and pedestrian pathways, with commercial, residential, or public City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
29 space up above, as well as eating and drinking establishments with outdoor dining.

Publicly accessible open space may also satisfy the active uses category where site constraints otherwise prohibit development, as determined by the Chief Planner. The commercial activities in the district are intended to be a destination, with regional and neighborhood serving establishments as well as civic uses. A public plaza along the BART right-of-way, just south of Oak Avenue, will provide a focus to the area, and a communitywide gathering space.

The majority of the Mission Road parcel does not have a General Plan Designation. A small, 792-square foot sliver of land at the northwest end of the site, adjoining the adjacent parcel to the southwest, has a General Plan designation of High-Density Residential, consistent with the adjacent parcel to the southwest. A small area at the southeast end of the parcel has a General Plan designation of Parks.

The majority of the Antoinette Lane parcel also does not have a General Plan designation. Two small slivers of land on the southwest side of the parcel have a General Plan designation of El Camino Real Mixed-Use North, High Intensity, consistent with the adjacent parcel to the southwest.

According to South San Francisco’s General Plan:
• Within the El Camino Real/Chestnut Avenue Area Plan, as it applies to this portion of the subject property, the High-Density Residential designation allows higher densities than elsewhere in the city, reflecting the area’s close proximity to the South San Francisco BART Station. Up to 120 units per acre are permitted and a minimum density of 80 units per acre is required. A maximum of 180 units per acre may be achieved for development meeting specified criteria.
• The El Camino Real Mixed-Use North, High Intensity designation is intended to accommodate high-intensity active uses and mixed-use development. Retail and department stores; eating and drinking establishments; hotels; commercial recreation; financial, business, and personal services; residential; educational and social services; and office uses are permitted. The maximum FAR for all uses, inclusive of residential but exclusive of structured parking, shall be 2.0, with increases to a maximum total FAR of 3.0 for development meeting specified criteria. Residential density (included within the overall FAR) is limited to a maximum of 80 units per acre, with increases to a maximum of 110 units per acre for development meeting specified criteria. • The Parks designation applies to Parks, recreation complexes, public golf courses, and greenways.

Finally, within the El Camino Real-Chestnut Avenue Area Plan, the majority of the Mission Road parcel does not have a land use designation, while portions of the site are designated HighDensity Residential (at the northwest end) and Park and Recreation (at the southeast end). The portion of the Antoinette Lane Parcel within the publicly traveled right of way area is assumed not to have a land use designation in the Plan (see Extraordinary Assumptions), and the portion outside of the publicly traveled right of way area has a land use designation of El Camino Real City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
30 Mixed-Use North, High Intensity. These designations correspond to the General Plan land use designations described above.

The zoning, General Plan, and the El Camino Real-Chestnut Avenue Area Plan maps are included on the following pages.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
31 Zoning Map

SUBJECT
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
32 General Plan Map

SUBJECT
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
33 El Camino Real-Chestnut Avenue Area Plan Map

SUBJECT
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
34 Highest and Best Use Analysis
The following definition of the term “Highest and Best Use” provides a reasonable basis for analyzing the subject property:

The reasonable, probable and legal use of vacant land or improved properties which is physically possible, appropriately supported, financially feasible, and results in the highest value.

Inherent in this definition are the following four criteria:

Legally Permissible: What uses are permitted, given existing deed and lease restrictions, zoning, building codes, historic controls, and environmental regulations?
Physically Possible: What uses of the site are possible, given the physical characteristics as revealed in the site analysis?
Financially Feasible: Which possible and permissible uses will produce positive net income from the development of the site after paying operating expenses and other financial obligations?
Maximally Productive: Which financially feasible use will provide the highest value or rate of return on investment?
The primary purpose of the highest and best use analysis is to identify the most productive, competitive use to which the property can be put. This analysis is done in two parts. The first part considers the possible uses of the site as if vacant. The second part evaluates the improvements to determine if they represent the highest and best use or if they should be modified.

Another purpose of the highest and best use analysis is to assist in defining the scope of the appraisal. In investigating the highest and best use, items that affect value such as accrued depreciation and functional and external obsolescence are identified. Also, by defining the highest and best use the selection of the comparable sales is narrowed, as they typically have the same or similar highest and best use.

Based on the four tests of legally permissible, physically possible, financially feasible, and maximally productive, the highest and best use of the subject property being valued has been analyzed.

The two areas being valued are long, narrow strips of land that do not have independent development potential. Therefore, their value is based on their contributory utility in assembly with the respective adjacent parcels to the southwest, both of which are zoned for high-density residential development and one of which calls for a mix of commercial development as well.

As previously described, in the City of South San Francisco, allowable density is based on gross parcel area, and accordingly, if the parcel were assembled and given the same zoning designation as the adjacent parcel to the south, its area could be used to calculate density on that parcel, City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
35 even if the street were required to be dedicated back to the City for roadway purposes. However, according to Tony Rozzi, Chief Planner with the City of South San Francisco, because the zoning and General Plan designation of the portions of the parcels within the publicly-traveled right of way areas differ from the land use designations of the adjoining parcels to the southwest, such a use of these areas would necessitate a rezoning and General Plan amendment to be consistent with the adjacent parcels to the southwest. Approval of these rezoning and General Plan amendments would be discretionary at the Planning Commission level and unlikely to be granted given their ultimate continued use as roadways, respectively.

Therefore, the portions of the parcels being appraised that are within existing public right of way areas are considered to have nominal economic use potential.

The Mission Road parcel, depicted in the graphic below, includes 4,279 square feet that are located outside of the publicly traveled right of way area. These areas are shown in the graphic as shaded in red and orange.

The red- and orange-shaded areas toward the right side of the graphic, at the southeast end of the parcel, are adjacent to areas designated for park and open space uses in the City of South San Francisco’s General Plan and the El Camino Real-Chestnut Avenue Area Plan. As such, these areas are also considered to have nominal economic utility in assembly with the adjacent parcel to the southwest.

The red-shaded area on the left side of the exhibit, shown on the left side of the exhibit, is adjacent to a parcel that, as previously described, has been approved for development of a large mixeduse development since 2019. This portion of the Mission Road parcel covers a total area of 792 square feet, according to representatives of the Client. Although incorporation of this portion of the parcel into the development would not likely result in additional dwelling units on the parcel, since it is already entitled, the highest and best use of this portion of the Mission Road parcel is for assembly with the adjacent parcel.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
36 Similarly, the Antoinette Lane parcel, depicted in the graphic below, includes 2,875 square feet that are located outside of the publicly traveled right of way area. These areas are shown in the graphic as shaded in red.

The Antoinette Lane parcel’s red-shaded area toward the left side of the graphic, at the northwest end of the parcel, is also adjacent to areas designated for park and open space uses in the City of South San Francisco’s General Plan. As such, this area is also considered to have nominal economic utility in assembly with the adjacent parcel to the southwest.

The red-shaded areas on the southwest side of the parcel are adjacent to an area that is owned by the City of South San Francisco and is currently being developed with a combined Library, Parks and Recreation/community theater/Council Chamber center and park. The combined area of these two areas is 836 square feet, according to representatives of the Client. Although incorporation of this portion of the parcel into the development would not provide significant additional utility, its highest and best use is nevertheless for assembly with the adjacent parcel.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
37 Valuation
Valuation Methodology
There are three generally recognized approaches considered in the valuation of real property.

These are the cost approach, sales comparison approach, and income approach. The type and age of the property and the quantity and quality of the available data affect the applicability of each approach in a specific appraisal situation.

The Cost Approach estimates, through support sources, the cost of constructing the subject improvements. Accrued depreciation from all causes is estimated and deducted from the estimates of cost new of the improvements. The market value of the land is added to this depreciated cost estimate to indicate the value of the subject property by the cost approach. The Land Value Estimate in the valuation process is usually a separate step, which is generally accomplished through the application of the sales comparison approach. The land value conclusion is then incorporated into the cost approach.

The Sales Comparison Approach involves a search for recent sales of properties similar to the subject. The prices paid for these properties provide the basis for estimating the value of the subject by comparison. Adjustments are made for the differences in the properties as they compare to the subject. A correlation of the data provides a value estimate for the subject. This is the most used, and considered the most reliable, approach to estimating the value of land.

The Income Approach looks at the relationship between a property's income producing ability and the value buyers and sellers assign to the income. An estimate is made of the market rent to indicate an annual gross income. Estimated fixed and variable operating expenses are deducted from the annual gross income to provide an annual net operating income. An indicated value of the subject is derived through direct capitalization of the indicated net income by a market derived overall rate or through the use of the discounted cash flow technique.

Reconciliation involves consideration of the relevance and influence of each approach in relation to the actions of typical users and investors of properties and particularly the subject property.

The three indications of value are discussed and reconciled into a final conclusion of market value.

Since the properties to be appraised include only land, and since neither portion of land has independent development potential, the value of the land has been estimated by applying a modified version of the Sales Comparison Approach, considering the contributory value of both areas in assembly with the respective adjacent parcels. The conclusion of value for the Sales Comparison Approach is determined following appropriate adjustments to properties that have sold and are similar to the parcels adjacent to the subject areas being appraised, considering the unit prices paid in the market for this type of property. A discount is then applied to reflect the additional contributory value of the areas in assembly and the limited market for these areas.

The income and cost approaches are not considered applicable to this assignment since the approaches do not typically apply to the valuation of land.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
38 Valuation, Mission Road Parcel
As previously stated, the portions of the Mission Road parcel within existing public right of way areas and adjacent to areas zoned for park and open space use are considered to have nominal economic use potential. Accordingly, these areas are assigned a nominal valuation of $2,500.

The 792 square foot area at the northwest end of the parcel is considered to have some contributory value in assembly with the adjacent parcel to the southwest.

As previously described, the adjacent parcel is a 5.9-net acre parcel, net of a portion occupied by the Colma Canal which bisects the site. The parcel is owned by the City of South San Francisco, which had sought a development partner to construct a mixed-use housing and retail project on the site for several years. In 2019, the site was approved for development of 800 dwelling units, 20% of which would be affordable housing, an 8,000-square foot childcare facility, a 13,000- square foot market hall, and over 700 parking spaces. The parcel benefits from its location near the South San Francisco BART Station nearby to the northwest. It is mostly level and has all utilities available for development in adjacent streets.

Since the portion of the Mission Road parcel that would be assembled with this property was not included in the entitlements, the area is being appraised as unentitled residential land.

Research was conducted to find comparable land sales in the subject’s market area.

The following table displays a summary of the selected sales, which are judged to be most representative of current market conditions for the parcel adjacent to the Mission Road. The most comparable land sales reflecting the actions of buyers and sellers in the marketplace are summarized below. Comparable data sheets, Assessor’s Parcel Maps and photographs for each comparable sale are included on the subsequent pages.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
39 Sales Data Summary
Address
No. City, State
APN
L-01
South San Francisco, CA
015-113-180, -380
L-02 89 W El Camino Real
Mountain View, CA
L-03 1 Adrian Ct
Burlingame, CA
L-04 2301-2399 Geneva Ave
Daly City, CA
L-05 803 Belmont Ave
Belmont, CA
L-06 988 El Camino Real
South San Francisco, CA
100 Produce Ave and 124 S
Airport Blvd
Corridor Mixed Use
(CMU) Unentitled
Corridor Mixed Use
ECR/C-MXH Unentitled
Medium Density
Mixed Use
None
In contract 53,143
Mixed Use Corridor Old restaurant building (to be
demolished)
RRMU
193-13-022
025-169-380
005-061-010 through -070
Entitled
Live/Work Two older commercial
buildings (to be demolished)
Light Commercial Unentitled
Jun-21 0.46
Apr-21 2.83
Apr-20 0.44
044-172-190
011-325-080
Commercial MixedUseNone
Sales Price
$/Sq. Ft. (Land)
Entitlements
Improvements
Sales
Contract Date
Parcel Size
(Acres)
Parcel Size
(Sq. Ft.)
Zoning
COE General Plan
$5,950,000
10/27/21 20,159 $295.15
$63,000,000
$361.66
Unknown
06/02/22

4.00 174,198
Business
Commercial
High Density Mixed
Use
Entitled
Older industrial buildings (to
be demolished)
El Camino Real
Precise Plan Unentitled
$3,690,000
04/01/21 19,300 $191.19
$34,000,000
08/31/21 123,231 $275.90
$225.81
Apr-19 1.22 $12,000,000
Old hotel buildings
07/16/18 72,310 $89.89
Jan-17 1.66 $6,500,000
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
40 Comparable Land Sale Location Map
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
41 Comparable Land Sale Data Sheet – L-01Comparable Lan d Sale D ata Sheets a nd P Compa rabl e La nd Sal e Dat a Shee ts
Compara ble La nd Sa le Da ta S hee ts a nd Parcel Ma p Property Type Multi-family - Land
Sales Contract Date Unknown
COE 06/02/22
Sales Price $63,000,000
Address 100 Produce Ave and 124 S Airport
Blvd
City, State South San Francisco, CA
Zip 94080
APN 015-113-180, -380
Buyer
Seller
Document #
Terms
Parcel Size (Acres)
Parcel Size (Sq. Ft.)
$/Sq. Ft. (Land)
Zoning
General Plan
# of Units
Density (du/a)
Utilities
Improvements
Verified By
Contact Info.

Comments This is the sale of an entitled residential project at South Airport Boulevard and Produce Avenue in South San Francisco. The parcels comprising the project, which in aggregate cover four acres, are occupied by six 1980s-era industrial buildings that are proposed for demolition to accommodate development of two seven-story structures with 480 apartments. The project would be the city’s second-largest residential development in the last decade. Calls to the buyer and seller were not returned, and information for this sale was based on available public records.

Icon SSF Apartments Owner LLC
PS Business Parks L.P.
44765
Assumed cash to seller

4.00 174,198
$361.66
Business Commercial
High Density Mixed Use
480
120
Public records
N/A
All Availible
Older industrial buildings (to be demolished)
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
42 Comparable Land Sale Parcel Map – L-01
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
43 Comparable Land Sale Data Sheet – L-02
Property Type Multi-family - Land
Sales Contract Date Jun-21
COE 10/27/21
Sales Price $5,950,000
Address 89 W El Camino Real
City, State Mountain View, CA
Zip 94040
APN 193-13-022
Buyer
Seller
Document #
Terms
Parcel Size (Acres)
Parcel Size (Sq. Ft.)
$/Sq. Ft. (Land)
Zoning
General Plan
# of Units
Density (du/a)
Utilities
Improvements
Verified By
Contact Info.

Mixed Use Corridor
Buen Camino Apartments LLC
Del Secco 1993 Family Partnership
25146559
Cash to Seller

0.46 20,159
$295.15
El Camino Real Precise Plan
Comments This is the October 2021 sale of a 0.46-acre property along West El Camino Real in Mountain View. The property is located less than a mile from the Mountain View Caltrain Station and about two miles south of the Google campus. The buyer reportedly intended to develop an apartment project on the site, and the zoning allows for market-rate development of up to 1.85 FAR, although the units will be below-market rate and the actual density is unknown. The site is occupied by a gutted restaurant building, which will be demolished and removed by the buyer to accommodate the project. The cost of demolition is unknown but appears to be insignificant relative to the sale price.

Doug Finney - Listing Agent
(650) 358-5262 / (650) 358-5250
N/A
N/A
All Available
Old restaurant building (to be demolished)
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
44 Comparable Land Sale Parcel Map – L-02
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
45 Comparable Land Sale Data Sheet – L-03
Property Type Multi-family - Land
Sales Contract Date Apr-21
COE 08/31/21
Sales Price $34,000,000
Address 1 Adrian Ct
City, State Burlingame, CA
Zip 94010
APN 025-169-380
Buyer
Seller
Document #
Terms
Parcel Size (Acres)
Parcel Size (Sq. Ft.)
$/Sq. Ft. (Land)
Zoning
General Plan
# of Units
Density (du/a)
Utilities
Improvements
Verified By
Contact Info.

Cash to Seller
CP VII Adrian LLC
SHAC Adrian Court Apartments, LLC
126535
Two older commercial buildings (to be demolished)

2.83 123,231
$275.90
RRMU
Live/Work
265
94 All Availible
[email protected]
Comments This is the sale of two parcels purchased for multi-family residential development. The property sold with entitlements including the final map recorded and the building permits ready to be issued for 265 residential units (38 moderate income units required) with 3,700 square feet of commercial space. The entitlements were reported to contribute an estimated $8 million to the sale price. Dedication requirements included the construction of a privately maintained park accessible to the public. Minor environmental remediation was required.

PG&E transmission tower and lines encumbered portions of the site at the time of the sale.

Michael Anichini - VP of Acquisitions SummerHill Apartment Communities (seller) City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
46 Comparable Land Sale Parcel Map – L-03
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
47 Comparable Land Sale Data Sheet – L-04
Property Type Multi-family - Land
Sales Contract Date Apr-20
COE 04/01/21
Sales Price $3,690,000
Address 2301-2399 Geneva Ave
City, State Daly City, CA
Zip 94014
APN 005-061-010 through -070
Buyer
Seller
Document #
Terms
Parcel Size (Acres)
Parcel Size (Sq. Ft.)
$/Sq. Ft. (Land)
Zoning
General Plan
# of Units
Density (du/a)
Utilities
Improvements
Verified By
Contact Info.

Cash to Seller
2321 Geneva LLC
Hargrove Trust & Anselmo Living Trust
052694 & 052695
None

0.44 19,300
$191.19
Light Commercial
Commercial Mixed-Use
N/A
N/A
All Available
(650) 391-1753
Comments The property consists of seven adjacent parcels of level rectangular land totaling 19,300 square feet of land area that has 200 feet of frontage and two corners on Geneva Avenue between Pasadena and Castillo Streets, directly across the street from the Cow Palace.

The property is zoned C-1 by Daly City, which allows mixed uses of multi-family and commercial. The 36 foot height limit, with no required set backs from the lot lines, would allow three levels of apartment development over underground parking and the required commercial use could be a relatively small area of ground floor retail type space. The property was purchased unentitled and is currently available for ground lease while the buyer processes entitlements for a proposed condominium project with ground-floor retail space. A small portion of the property is located within the jurisdiction of the City and County of San Francisco.

David Cutler, Listing Agent
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
48 Comparable Land Sale Parcel Map – L-04
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
49 Comparable Land Sale Data Sheet – L-05
Property Type Multi-family - Land
Sales Contract Date Apr-19
COE In contract
Sales Price $12,000,000
Address 803 Belmont Ave
City, State Belmont, CA
Zip 94002
APN 044-172-190
Buyer
Seller
Document #
Terms
Parcel Size (Acres)
Parcel Size (Sq. Ft.)
$/Sq. Ft. (Land)
Zoning
General Plan
# of Units
Density (du/a)
Utilities
Improvements
Verified By
Contact Info.

Cash to Seller
Roem Corporation
Lloyd Martini
Pending
Old hotel buildings

1.22 53,143
$225.81
Corridor Mixed Use (CMU)
Corridor Mixed Use
125
102
All Available
(650) 391-1805
Comments This property is located on the northeast side of Belmont and it's currently being used as a motel. The proposed development consists of 125 Affordable Residential Apartments, subterranean parking, ancillary space (community room, gym, office) and open space. The residential unit mix includes 52 one-bedroom, 40 two-bedroom, and 33 three-bedroom units.

Improvements might be needed to the private road accessing the site as part of the development. The property has an irregular shape with a slight slope to it which was all considered on the pricing. The contract price is rumored to be near the listing price. The parcel area shown differs from public records (63,293 square feet) and is reportedly based on a professional survey.

Richard Reisman - Listing Agent
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
50 Comparable Land Sale Parcel Map – L-05
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
51 Comparable Land Sale Data Sheet – L-06
Property Type Multi-family - Land
Sales Contract Date Jan-17
COE 07/16/18
Sales Price $6,500,000
Address 988 El Camino Real
City, State South San Francisco, CA
Zip 94080
APN 011-325-080
Buyer
Seller
Document #
Terms
Parcel Size (Acres)
Parcel Size (Sq. Ft.)
$/Sq. Ft. (Land)
Zoning
General Plan
# of Units
Density (du/a)
Utilities
Improvements
Verified By
Contact Info. [email protected]
Comments This is the sale of four parcels purchased for multi-family residential development. A portion of the property had extensive easement encumbrances which included PG&E gas and electrical transmission lines, private sanitary sewer and public sanitary sewer. The property was unentitled and development of the site required underground parking. The buyer constructed a 172 unit apartment building which includes 10,000 square feet of commercial area. The sale went into contract in January of 2017 and sold in July of 2018, and the buyer performed entitlements in escrow. Extraordinary development costs stemmed from Extensive Rule 20 undergrounding, necessity to bring Cal Water line from across El Camino Real, and requirement for two levels of underground parking. Offsite cost and dedication requirements were reported; however, no detail was given. There were no affordable housing requirements and the sale was believed to reflect market value.

Michael Anichini - VP of Acquisitions SummerHill Apartment Communities (Buyer) None

1.66 72,310
$89.89

ECR/C-MXH
Medium Density Mixed Use
172
104
See comments
Conventional
SHAC 988 ECR Apartments LLC
Petrocchi Trust
055228
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
52 Comparable Land Sale Parcel Maps – L-06
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
53 City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
54 Sales Data Analysis
Adjustments are made to the comparable sale prices for the differences in the properties as they compare to the parcel adjacent to the subject. A number of adjustments for the analysis of the comparable data have been considered in relation to the subject property. The comparable data has been adjusted for inferior and superior characteristics. For Example: where a comparable had an inferior characteristic, a positive (+) adjustment to the comparable was made. Where the comparable had a superior characteristic, a negative (-) adjustment was made to the comparable.

Adjustments were made sequentially for property rights conveyed, financing terms, conditions of sale, expenditures incurred by the buyer immediately after the sale, and market conditions at the time of sale. Adjustments for location characteristics, physical characteristics, use and non-realty components of value are subsequently added and applied.

Property Rights Conveyed: Each comparable sale involved the conveyance of the fee simple interest. Since the subject’s fee simple interest is being appraised, no adjustments are made for this factor.

Financing terms: Each comparable sale involved cash to the seller or conventional financing.

Therefore, no adjustments are made for this factor.

Conditions of Sale: Each of the comparable sales appears to have been an arm’s length transaction. No adjustments are necessary for this factor.

Expenditures Incurred Immediately After Purchase: Several of the comparable sales necessitated demolition of existing structures to accommodate development. However, the respective costs associated with demolition were deemed insignificant relative to the sale prices paid. Therefore, none of the comparables required an adjustment for this factor.

Change in Market Conditions: Where information was available, the comparable sales used had contract dates between January 2017 and June 2021. Comparable L-01 could not be confirmed as of the writing of this report, but since it sold entitled, it is assumed that the contract date occurred under similar market conditions to the date the sale closed, June 2022.

As previously described, after a period of explosive growth, the residential market has cooled dramatically along with the broader economy, which is characterized by high inflation, declining consumer confidence, and uncertainty. Comparables L-04 through L-06 receive positive adjustments for inferior market conditions, to varying degrees, Comparables L-01 through L0-03, which have (or are assumed to have) contract dates occurring since 2021, do not receive adjustments for this factor.

Location: Comparable L-04 occupies an inferior location in Daly City and receives an upward consideration for this factor. Comparables L-01, L-02, L-03, and L-05 are located in superior areas and receive downward adjustments. Comparable L-06 is located within the subject neighborhood, and no adjustment to this sale is needed for this factor.

Size: The site southwest of Mission Road covers 5.9 acres, net of Colma Creek which passes through the site. Typically, smaller properties will have a larger buyer pool, creating more City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
55 demand for smaller properties and resulting in higher prices on a per-square foot basis compared to larger properties. Based on the unit value used as a per square foot basis, Comparables L-02 through L-06, all of which are smaller than the subject, receive downward adjustments.

Comparable L-01 is considered to be in the same size class as the subject and does not need an adjustment for this factor.

Land Use (Zoning/General Plan): Although the planned densities for each are unknown, Comparables L-02 and L-04 have zoning designations allowing for less intense development than could be accommodated on the parcel adjacent to the subject, warranting positive adjustments for each. The remaining sales are proposed for development at densities similar to what is proposed for the adjacent parcel, and no further adjustments are needed.

Site Utility/Constraints: The site adjacent to the subject is bisected by the Colma Creek, which impairs its overall utility. Comparable L-06 had extensive easement encumbrances, which included PG&E gas and electrical transmission lines and private and public sanitary sewer. These easements are judged to have a greater impact on this site due to its smaller size, and a positive adjustment is needed for this factor. The remaining comparable sales have superior site utility and receive negative adjustments for this factor.

Contributory Value of Existing Improvements & Utilities: All the comparable sales sold with all public utilities necessary for development available, and none sold with improvements of contributory value. No adjustments are needed for this factor.

Entitlements: Comparables L-01 and L-03 sold with entitlements in place, having been secured by the seller, and significant downward adjustments are needed for this factor. The remaining comparable sales sold unentitled, and no further adjustments are necessary.

City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
56 The following table summarizes the adjustments made to each comparable. Bold text connotates a more substantial adjustment.

Land Value Conclusion, Parcel Adjacent to Mission Road:

The unadjusted unit selling prices of the comparable sales range from $89.89 to $361.66 per square foot. After adjustments, the comparable sales indicate a bracketed value range between $191.19, as indicated by Comparable L-04, and $225.81, as indicated by Comparable L-05.

Comparable L-04 sold during inferior market conditions, occupies an inferior location, and has inferior land use potential in comparison with the parcel adjacent to Mission Road. Although this comparable is smaller and has superior site utility, overall, a net positive adjustment is warranted.

Comparable L-05 also sold during inferior market conditions, but due to its superior location, smaller size, and superior site utility, an overall downward adjustment is indicated.

Based on the prior analysis and in view of the definition of value, the estimated fair market land value of the parcel adjacent to the southwest of Mission Road is concluded to be toward the upper-middle end of the bracketed range, or $210 per square foot.

Discount due to Assemblage Highest and Best Use
To value the 792-square foot portion of the Mission Road parcel being analyzed, a discount to the unit value of the adjacent parcel is warranted to account for the limited market for the area of a single potential buyer, the owner of the abutting parcel. The discount accounts for the additional utility of the portion of the parcel to the owner of the adjacent property.

Since the adjacent parcel has already been granted development entitlements, it is unlikely that the current or any prospective owner of that property would acquire the 792-square foot portion L-01 L-02 L-03 L-04 L-05 L-06
100 Produce Ave
and 124 S Airport
89 W El Camino
Real
1 Adrian Ct 2301-2399
Geneva Ave
803 Belmont Ave 988 El Camino
Real
South San
Francisco, CA
Mountain View,
CA
Burlingame, CA Daly City, CA Belmont, CA South San
Francisco, CA
Sales Contract Date Unknown Jun-21 Apr-21 Apr-20 Apr-19 Jan-17 Sale Date Jun-22 Oct-21 Aug-21 Apr-21 In contract Jul-18 Sales Price $63,000,000 $5,950,000 $34,000,000 $3,690,000 $12,000,000 $6,500,000 Parcel Size (Acres) 4.00 0.46 2.83 0.44 1.22 1.66
Sales Price / Sq. Ft. $361.66 $295.15 $275.90 $191.19 $225.81 $89.89 Property Rights Conveyed Ø Ø Ø Ø Ø Ø
Financing Terms Ø Ø Ø Ø Ø Ø
Conditions of Sale Ø Ø Ø Ø Ø Ø
Expenditures After Purchase Ø Ø Ø Ø Ø Ø
Market Conditions (Time) Ø Ø Ø Positive Positive Positive Location Negative Negative Negative Positive Negative Ø Size Ø Negative Negative Negative Negative Negative
Land Use (Zoning / General Plan) Ø Positive Ø Positive Ø Ø Site Utility / Constraints Negative Negative Negative Negative Negative Positive Contributory Improvements & Utilities Ø Ø Ø Ø Ø Ø
Entitlements Negative Ø Negative Ø Ø Ø
Net Adjustment Substantially
Negative Negative Negative Positive Negative Substantially Positive Comparable
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
57 being analyzed to add additional development density. Therefore, its contributory utility to the adjacent parcel is considered to be minor, limited to providing additional landscaping and buffer area for the development.

A summary of remnant land sales from the region is shown in the following table. These sales have not been personally verified but were obtained from sources deemed reliable. The discount factors for remnant land sales were found to vary widely from around 30% to 90%, largely based on the additional utility provided by the remnant land to the adjacent buyer and the usability of the remnant parcel itself.

REMNANT LAND SALES SUMMARY
Sale Date
Sale Grantor Purchase Price (per sf) Discount
No. Location Grantee Estimated Market (per sf) Zoning From Market 1 1098 S. 3rd St. Dec-05 $13.79 M1 54%
San Jose, CA Union Pacific Railroad $30.00
472-15-029 Lawrence B. Stone Properties
2 West of Dobbin Rd. Apr-07 $9.83 LI 61%
San Jose, CA Union Pacific Railroad $25.00
254-55-013 Allen Mirzaei
3 Griffith St. (East Side) Jan-07 $14.10 IG 30%
San Leandro, CA Union Pacific $20.00
077B-0851-048 & -055 Rosalinde & Arthur Gilbert Foundation 4 Griffith St. (East Side) Nov-09 $7.98 IG 43%
San Leandro, CA Rosalinde & Arthur Gilbert Foundation $14.00 077B-0851-055 Coca Cola Bottling Co.
5 323 South Canal St. Jan-09 $30.00 MI 33%
South San Francisco, CA unknown $45.00
015-164-220 Chang & Young Ahn
6 220 Shaw Rd. Aug-09 $27.38 M2 39%
South San Francisco, CA Economy Lumber $45.00
015-164-230 Angelo, Gordon & Co.
7 2075 N. Capitol Ave. Dec-00 $8.00 IP 64%
San Jose, CA PG&E $22.00
244-01-057 MA Laboratories, Inc.
8 2110 Railroad Ave. Aug-11 $2.22 PD-1319 85%
Pittsburg, CA City of Pittsburg $15.00
087-030-083 Randy Baugh
10 4050 Port Chicago Highway Mar-14 $3.52 Parks & Rec. 61% Concord, CA City of Concord $9.00
100-370-009 Pacific Ranch Inv.
11 25408 University Ct. Oct-17 $0.90 Residential 93%
Hayward, CA Burton / Vanderwilk $12.80
425-0390-019 County of Alameda
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
58 Since the 792-square foot area is judged to have minor contributory value in assembly with the adjoining parcel, a discount factor toward the upper end of the range indicated by the preceding data, or 75% is attributed to the value of the 792-square foot area. Conversely, the area is concluded to have 25% of the underlying fee value for assembly with the adjacent parcel to the southwest.

Value Conclusion, Mission Road Parcel
As previously stated, the portions of the Mission Road parcel within existing public right of way areas and adjacent to areas zoned for park and open space use are considered to have nominal economic use potential. Accordingly, these areas are assigned a nominal valuation of $2,500.

Therefore, the conclusion of value for the Mission Road parcel is as shown in the following table.

Valuation, Antoinette Lane Parcel
As previously stated, the portions of the Antoinette Lane parcel within existing public right of way areas and adjacent to areas zoned for park and open space use are considered to have nominal economic use potential. Accordingly, these areas are assigned a nominal valuation of $2,500.

Like with the portion of the Mission Road parcel analyzed in the preceding section, the two areas along the southwest side of the Antoinette Lane parcel, covering a combined 836 square feet, are considered to have some contributory value in assembly with the adjacent parcel to the southwest.

As previously described, the site to the southwest of the Antoinette Lane parcel is also owned by the City of South San Francisco and is currently being developed with a combined Library, Parks and Recreation/community theater/Council Chamber center and park. This development, which broke ground in January 2021, is part of South San Francisco’s three-phase Community Civic Campus project that will also ultimately include a new state-of-the-art police operations and 911 dispatch center and a new fire station. This site covers a total area of 1.13 acres, or 49,078 square feet, according to public records. It is level and triangular in shape, and all utilities necessary for development are available in adjacent streets.

The same comparable sales are used to analyze the value of the parcel adjacent to the southwest of Antoinette Lane. The same adjustments are also applied, except for the adjustments for size and site utility.

Fee Simple Value Size (s.f.)
Land
Value/s.f.

Mission Road Parcel Total Area: 31,548
Within Right of Way or Adjacent to Park-Zoned Land 31,548 Nominal $2,500 Not Within Right of Way or Adjacent to Park-Designated Land 792 x $210 x 25% $41,580 $44,080
% of Value due
to Utility in
Assembly
Estimated
Value
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
59 Size: Based on the unit value used as a per square foot basis, Comparable L-01 receives a positive adjustment for its larger site size, while Comparables L-02 and L-04 are smaller than the site adjacent to Antoinette Lane and receive downward adjustments. The remaining sales are considered to be in the same size class as the parcel southwest of Antoinette Lane and do not need adjustments for this factor.

Site Utility/Constraints: The adjacent site has a somewhat irregular, triangular shape.

Comparable L-06 had extensive easement encumbrances, which included PG&E gas and electrical transmission lines and private and public sanitary sewer. A large positive adjustment is needed for this factor. Comparable L-03 had electrical transmission lines occupying a portion of the site, while Comparable L-05 has irregular, hilly topography. Both sales are judged to have effectively similar site utility and do not receive adjustments for this factor. The remaining comparable sales have superior site utility and receive negative adjustments for this factor.

The following table summarizes the adjustments made to each comparable in relation to the parcel southwest of Antoinette Lane. Bold text connotates a more substantial adjustment.

Land Value Conclusion, Parcel Adjacent to Antoinette Lane:

After adjustments, the comparable sales indicate a bracketed value range above $191.19 per square foot, as indicated by Comparable L-04, below $275.90 per square foot, as indicated by Comparable L-03, and similar to the sale price indicated by Comparable L-05, or $225.81 per square foot, as indicated by Comparable L-05. Comparable L-04 sold during inferior market conditions, occupies an inferior location, and has inferior land use potential in comparison with the parcel adjacent to Mission Road. Although this comparable is smaller and has superior site utility, overall, a net positive adjustment is warranted. Comparable L-03 occupies a superior location and sold with entitlements in place, resulting in a net downward adjustment. Comparable L-01 L-02 L-03 L-04 L-05 L-06
100 Produce Ave
and 124 S Airport
89 W El Camino
Real
1 Adrian Ct 2301-2399
Geneva Ave
803 Belmont Ave 988 El Camino
Real
South San
Francisco, CA
Mountain View,
CA
Burlingame, CA Daly City, CA Belmont, CA South San
Francisco, CA
Sales Contract Date Unknown Jun-21 Apr-21 Apr-20 Apr-19 Jan-17 Sale Date Jun-22 Oct-21 Aug-21 Apr-21 In contract Jul-18 Sales Price $63,000,000 $5,950,000 $34,000,000 $3,690,000 $12,000,000 $6,500,000 Parcel Size (Acres) 4.00 0.46 2.83 0.44 1.22 1.66
Sales Price / Sq. Ft. $361.66 $295.15 $275.90 $191.19 $225.81 $89.89 Property Rights Conveyed Ø Ø Ø Ø Ø Ø
Financing Terms Ø Ø Ø Ø Ø Ø
Conditions of Sale Ø Ø Ø Ø Ø Ø
Expenditures After Purchase Ø Ø Ø Ø Ø Ø
Market Conditions (Time) Ø Ø Ø Positive Positive Positive Location Negative Negative Negative Positive Negative Ø Size Positive Negative Ø Negative Ø Ø
Land Use (Zoning / General Plan) Ø Positive Ø Positive Ø Ø Site Utility / Constraints Negative Negative Ø Negative Ø Positive Contributory Improvements & Utilities Ø Ø Ø Ø Ø Ø
Entitlements Negative Ø Negative Ø Ø Ø
Net Adjustment Substantially
Negative Negative Negative Positive Similar Substantially Positive Comparable
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
60 L-05 also sold during inferior market conditions, but due to its superior location, a net neutral adjustment is indicated.

Based on the prior analysis and in view of the definition of value, the estimated fair market land value of the parcel adjacent to the southwest of Antoinette Lane is concluded to be similar to the unit price of Comparable L-05, or $225 per square foot.

Discount due to Assemblage Highest and Best Use
To value the portions of the Antoinette Lane parcel being analyzed, which total 836 square feet, a discount to the unit value of the adjacent parcel is warranted, similar to the preceding analysis of the Mission Road parcel. Since the adjacent parcel has already been developed, the contributory utility to the adjacent parcel is considered to be minor, limited to providing additional landscaping and buffer area for the development. Therefore, a discount factor toward the upper end of the range indicated by the preceding remnant sale data, or 75% is attributed. Conversely, the areas are concluded to have 25% of the underlying fee value for assembly with the adjacent parcel to the southwest.

Value Conclusion, Antoinette Lane Parcel
As previously stated, the portions of the Antoinette Lane parcel within existing public right of way areas and adjacent to areas zoned for park and open space use are considered to have nominal economic use potential. Accordingly, these areas are assigned a nominal valuation of $2,500.

Therefore, the conclusion of value for the Mission Road parcel is as shown in the following table.

Land Value of the Subject Property
Fee Simple Value Size (s.f.)
Land
Value/s.f.

Antoinette Lane Parcel Total Area: 13,954
Within Right of Way or Adjacent to Park-Zoned Land 13,118 Nominal $2,500 Not Within Right of Way or Adjacent to Park-Designated Land 836 x $225 x 25% $47,025 $49,525
% of Value due
to Utility in
Assembly
Estimated
Value
City of South San Francisco
Acquisition of Portions of Mission Road and Antoinette Lane Property Owner – SFPUC
61 Total Fair Market Value, Mission Road and Antoinette Lane Parcels The total fair market value of the Mission Road and Antoinette Lane parcels is as shown in the following table.

Fee Simple Value Size (s.f.)
Land
Value/s.f.

ADDENDA

LITIGATION GUARANTEE

AMENDED
ORT Form 5315
Revised 06/05/14
ORDER NO.
2202068007-PL
REFERENCE NO. GUARANTEE NO.

A04201-LITA-173715

LITIGATION GUARANTEE
CLTA GUARANTEE FORM NO. 1 (06/05/14)

SUBJECT TO THE EXCLUSIONS FROM COVERAGE, AND THE GUARANTEE CONDITIONS ATTACHED HERETO AND MADE A PART OF THIS GUARANTEE, OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY, a Florida corporation, herein called the Company

GUARANTEES
the Assured named in Schedule A of this Guarantee against loss or damage not exceeding the Amount of Liability stated in Schedule A sustained by the Assured by reason of any incorrectness in the Assurances set forth in Schedule A.

Issued through the office of:

Old Republic Title Company
524 Gibson Drive
Roseville, CA 95678
Countersigned:

By
Validating Officer

OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
A Stock Company
400 Second Avenue South, Minneapolis, Minnesota 55401
(612) 371-1111

AMENDED
ORT Form 5315
Revised 06/05/14

EXCLUSIONS FROM COVERAGE
Except as expressly provided by the assurances in Schedule A, the Company assumes no liability for loss or damage by reason of the following:
(a) Defects, liens, encumbrances, adverse claims or other matters affecting the title to any property beyond the lines of the Land.
(b) Defects, liens, encumbrances, adverse claims or other matters, whether or not shown by the Public Records (1) that are created, suffered, assumed or agreed to by one or more of the Assureds; or (2) that result in no loss to the Assured.
(c) Defects, liens, encumbrances, adverse claims or other matters not shown by the Public Records. (d) The identity of any party shown or referred to in any of the schedules of this Guarantee. (e) The validity, legal effect or priority of any matter shown or referred to in any of the schedules of this Guarantee. (f) (1) Taxes or assessments of any taxing authority that levies taxes or assessments on real property; or, (2) proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not the matters excluded under (1) or (2) are shown by the records of the taxing authority or by the Public Records.
(g) (1) Unpatented mining claims; (2) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (3) water rights, claims or title to water, whether or not the matters excluded under (1), (2) or (3) are shown by the Public Records.

AMENDED
ORT Form 5315
Revised 06/05/14

GUARANTEE CONDITIONS

1. DEFINITION OF TERMS
The following terms when used in the Guarantee mean:
(a) the "Assured”: the party or parties named as the Assured in Schedule A, or on a supplemental writing executed by the Company.
(b) “Land”: the Land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term “Land” does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways.
(c) “Mortgage”: mortgage, deed of trust, trust deed, or other security instrument. (d) “Public Records”: those records established under state statutes at Date of Guarantee for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (e) “Date of Guarantee”: the Date of Guarantee set forth in Schedule A. (f) “Amount of Liability”: the Amount of Liability as stated in Schedule A.

2. NOTICE OF CLAIM TO BE GIVEN BY ASSURED
The Assured shall notify the Company promptly in writing in case knowledge shall come to the Assured of any assertion of facts, or claim of title or interest that is contrary to the assurances set forth in Schedule A and that might cause loss or damage for which the Company may be liable under this Guarantee. If prompt notice shall not be given to the Company, then all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of the Assured under this Guarantee unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice.

3. NO DUTY TO DEFEND OR PROSECUTE
The Company shall have no duty to defend or prosecute any action or proceeding to which the Assured is a party, notwithstanding the nature of any allegation in such action or proceeding.

4. COMPANY’S OPTION TO DEFEND OR PROSECUTE ACTIONS; DUTY OF ASSURED TO COOPERATE Even though the Company has no duty to defend or prosecute as set forth in Paragraph 3 above:
(a) The Company shall have the right, at its sole option and cost, to institute and prosecute any action or proceeding, interpose a defense, as limited in Paragraph 4(b), or to do any other act which in its opinion may be necessary or desirable to establish the correctness of the assurances set forth in Schedule A or to prevent or reduce loss or damage to the Assured. The Company may take any appropriate action under the terms of this Guarantee, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this Guarantee. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (b) If the Company elects to exercise its options as stated in Paragraph 4(a) the Company shall have the right to select counsel of its choice (subject to the right of the Assured to object for reasonable cause) to represent the Assured and shall not be liable for and will not pay the fees of any other counsel, nor will the Company pay any fees, costs or expenses incurred by an Assured in the defense of those causes of action which allege matters not covered by this Guarantee.
(c) Whenever the Company shall have brought an action or interposed a defense as permitted by the provisions of this Guarantee, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from an adverse judgment or order. (d) In all cases where this Guarantee permits the Company to prosecute or provide for the defense of any action or proceeding, the Assured shall secure to the Company the right to so prosecute or provide for the defense of any action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the Assured for this purpose. Whenever requested by the Company, the Assured, at the Company’s expense, shall give the Company all reasonable aid in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or lawful act which in the opinion of the Company may be necessary or desirable to establish the correctness of the assurances set forth in Schedule A or to prevent or reduce loss or damage to the Assured. If the Company is prejudiced by the failure of the Assured to furnish the required cooperation, the Company’s obligations to the Assured under the Guarantee shall terminate.

AMENDED
ORT Form 5315
Revised 06/05/14

5. PROOF OF LOSS OR DAMAGE
(a) In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Assured furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance, or other matter that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. (b) In addition, the Assured may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Guarantee, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Assured shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the Assured provided to the Company pursuant to this paragraph shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Assured to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in the above paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this Guarantee to the Assured for that claim.

6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS: TERMINATION OF LIABILITY In case of a claim under this Guarantee, the Company shall have the following additional options:
(a) To pay or tender payment of the Amount of Liability together with any costs, attorneys’ fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay.
(b) To pay or otherwise settle with the Assured any claim assured against under this Guarantee. In addition, the Company will pay any costs, attorneys’ fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (c) To pay or otherwise settle with other parties for the loss or damage provided for under this Guarantee, together with any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment and that the Company is obligated to pay.

Upon the exercise by the Company of either of the options provided for in 6 (a), (b) or (c) of this paragraph the Company’s obligation to the Assured under this Guarantee for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty to continue any and all litigation initiated by the Company pursuant to Paragraph 4.

7. LIMITATION OF LIABILITY
(a) This Guarantee is a contract of Indemnity against actual monetary loss or damage sustained or incurred by the Assured claimant who has suffered loss or damage by reason of reliance upon the assurances set forth in Schedule A and only to the extent herein described, and subject to the Exclusions From Coverage of this Guarantee.
(b) If the Company, or the Assured under the direction of the Company at the Company's expense, removes the alleged defect, lien or, encumbrance or cures any other matter assured against by this Guarantee in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby.
(c) In the event of any litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom.
(d) The Company shall not be liable for loss or damage to the Assured for liability voluntarily assumed by the Assured in settling any claim or suit without the prior written consent of the Company.

AMENDED
ORT Form 5315
Revised 06/05/14

8. REDUCTION OF LIABILITY OR TERMINATION OF LIABILITY
All payments under this Guarantee, except payments made for costs, attorneys’ fees and expenses pursuant to Paragraph 4 shall reduce the Amount of Liability under this Guarantee pro tanto.

9. PAYMENT OF LOSS
(a) No payment shall be made without producing this Guarantee for endorsement of the payment unless the Guarantee has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company.
(b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions, the loss or damage shall be payable within thirty (30) days thereafter.

10. SUBROGATION UPON PAYMENT OR SETTLEMENT
Whenever the Company shall have settled and paid a claim under this Guarantee, all right of subrogation shall vest in the Company unaffected by any act of the Assured claimant.

The Company shall be subrogated to and be entitled to all rights and remedies which the Assured would have had against any person or property in respect to the claim had this Guarantee not been issued. If requested by the Company, the Assured shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The Assured shall permit the Company to sue, compromise or settle in the name of the Assured and to use the name of the Assured in any transaction or litigation involving these rights or remedies.

If a payment on account of a claim does not fully cover the loss of the Assured the Company shall be subrogated to all rights and remedies of the Assured after the Assured shall have recovered its principal, interest, and costs of collection.

11. ARBITRATION
Either the Company or the Assured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Assured arising out of or relating to this Guarantee, any service of the Company in connection with its issuance or the breach of a Guarantee provision, or to any other controversy or claim arising out of the transaction giving rise to this Guarantee.

All arbitrable matters when the amount of liability is $2,000,000 or less shall be arbitrated at the option of either the Company or the Assured. All arbitrable matters when the amount of liability is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Assured. Arbitration pursuant to this Guarantee and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction.

12. LIABILITY LIMITED TO THIS GUARANTEE; GUARANTEE ENTIRE CONTRACT (a) This Guarantee together with all endorsements, if any, attached hereto by the Company is the entire Guarantee and contract between the Assured and the Company. In interpreting any provision of this Guarantee, this Guarantee shall be construed as a whole.
(b) Any claim of loss or damage, whether or not based on negligence, or any action asserting such claim, shall be restricted to this Guarantee.
(c) No amendment of or endorsement to this Guarantee can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company.

AMENDED
ORT Form 5315
Revised 06/05/14

13. SEVERABILITY
In the event any provision of this Guarantee, in whole or in part, is held invalid or unenforceable under applicable law, the Guarantee shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect.

14. CHOICE OF LAW; FORUM
(a) Choice of Law: The Assured acknowledges the Company has underwritten the risks covered by this Guarantee and determined the premium charged therefore in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of Guaranties of the jurisdiction where the Land is located.

Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims that are adverse to the Assured and to interpret and enforce the terms of this Guarantee.

In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Assured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction.

15. NOTICES, WHERE SENT
All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this Guarantee and shall be addressed to the Company at the office which issued this Guarantee or at 400 Second Avenue South, Minneapolis, Minnesota 55401-2499, (612) 371-1111.

AMENDED
Page_1_of_4 Pages
ORT Form 5315
Revised 06/05/14

LITIGATION GUARANTEE
ORDER NO. 2202068007-PL
REFERENCE NO.

GUARANTEE NO. A04201-LITA-173715
LIABILITY $10,000.00
DATE OF GUARANTEE May 21st, 2021 at 7:30:00 AM
FEE $1,200.00

SCHEDULE A

1. Name of Assured:

City of South San Francisco

2. The estate or interest in the Land that is the subject of this Guarantee is:

Fee

3. The Land referred to in this Guarantee is described as follows:
** SEE EXHIBIT “A” ATTACHED **

4. This Litigation Guarantee is furnished solely for the purpose of facilitating the filing of an action to eminent domain.

It shall not be used or relied upon for any other purpose.

5. ASSURANCES:

According to the Public Records as of the Date of Guarantee, a. Title to the estate or interest is vested in:

City and County of San Francisco
b. Except for the matters shown in Schedule B, there are no defects, liens, encumbrances or other matters affecting title to the estate or interest in the land shown in Schedule A, which matters are not necessarily shown in the order of their priority.
c. The current interest holders claiming some right, title or interest by reason of the matters shown in Part II of Schedule B are as shown therein. The vestee named herein and parties claiming to have some right, title or interest by reason of the matters shown in Part II of Schedule B may be necessary parties defendant in an action, the nature of which is referred to above in paragraph 4. d. The current interest holders claiming some right, title or interest by reason of the matters shown in Part I of Schedule B may also be necessary parties defendant in an action, the nature of which is referred to above in paragraph 4. However, no return address for mailing after recording is shown in Schedule C as to those current interest holders.
e. The return address for mailing after recording, if any, as shown on each document referred to in Part II of Schedule B by specific recording information, and as shown on the document(s) vesting title as shown above in paragraph 5(a), are as shown in Schedule C.

AMENDED
Page_2_of_4 Pages
ORT Form 5315
Revised 06/05/14

LITIGATION GUARANTEE
ORDER NO. 2202068007-PL
REFERENCE NO.

GUARANTEE NO. A04201-LITA-173715
LIABILITY $10,000.00
DATE OF GUARANTEE May 21st, 2021 at 7:30:00 AM
FEE $1,200.00

SCHEDULE B, PART I

1. Taxes and assessments, general and special, for the fiscal year 2021 - 2022, a lien, but not yet due or payable.

2. NOTE: No taxes shown for 2020-2021 fiscal year taxes

3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Section 75, et seq., of the Revenue and Taxation Code of the State of California.

4. Rights of the public, County and/or City, in and to that portion of said land lying within the lines of Mission Road, a portion now known as Antoinette Lane.

5. Easements for any existing public utilities.

6. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof.

7. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

SCHEDULE B, PART II
None reported

AMENDED
Page_3_of_4 Pages
ORT Form 5315
Revised 06/05/14

LITIGATION GUARANTEE
ORDER NO. 2202068007-PL
REFERENCE NO.

GUARANTEE NO. A04201-LITA-173715
LIABILITY $10,000.00
DATE OF GUARANTEE May 21st, 2021 at 7:30:00 AM
FEE $1,200.00

SCHEDULE C
Addresses
Paragraph No. Recording Information Mailing Address
5A City and County of San Francisco Water Department

AMENDED
Page_4_of_4 Pages
ORT Form 5315
Revised 06/05/14
EXHIBIT "A"
The land referred to in this policy is situated in the County of San Mateo, City of South San Francisco, State of California, and is described as follows:

All that portion of the Southwesterly one-half of Mission Road (66 feet wide) as shown on the "Map of that Part of the Lux Ranch Laying West of Mission Road" filed for record on March 10, 1891 in Book "D" at Page 58 lying between the Northeasterly prolongation of the Northwesterly line and the Northeasterly prolongation of the Southeasterly line of that certain "Take Parcel 1" as described in that Quitclaim Deed recorded January 31, 2008 as Instrument No. 2008- 009955 of Official Records.

APPRAISER QUALIFICATIONS

ERIK WOODHOUSE, MAI, R/W-AC
Industry experience since 2003
Current Responsibilities
Erik A.T. Woodhouse joined Associated Right of Way Services, Inc., in 2012, and currently serves as a Real Estate Appraiser, performing appraisals for full and partial acquisitions assignments on improved and unimproved properties for public improvement projects. The scope of his work includes commercial, industrial, and multi-family residential properties for transportation and utility improvement projects. All work is performed in conformance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act, Uniform Standards of Professional Appraisal Practice, Caltrans standards, and state and federal guidelines.

Mr. Woodhouse is experienced in appraising an extensive assortment of real estate types, and earned his distinguished MAI designation conferred by the Appraisal Institute by completing a rigorous program of course work, written exams, appraisal projects, and narrative report presentations.

Prior Experience
Prior to joining the AR/WS team, Mr. Woodhouse was employed by Petersen LaChance Regan Pino (Boston, MA) as a Contract Associate Appraiser. He was responsible for research and preparation of appraisal reports for a variety of commercial, residential, industrial, and special purpose property types.

He also conducted appraisals for underwriting, portfolio analysis, and litigation purposes.

Prior to his work with Petersen, Mr. Woodhouse was a Senior Real Estate Appraiser with Burchard & Rinehart (Walnut Creek, CA) where his appraisal experience covered commercial, residential, and agricultural land, as well as improved retail, office, industrial, multi-family residential, marina, hotel, and agricultural properties. He conducted complex real estate appraisals of land and income producing properties (primarily eminent domain acquisition); performed client consultation, market research, highest and best use analysis, comparable data research and verification, valuation conclusions, and analysis of severance damages and benefits; and assisted in preparation of appraisal reports and exhibits for expert witness testimony in deposition and court trial.

Education
Connecticut College (New London, CT), B.A., Economics and German, cum laude Connecticut College, International Studies Certificate, International Studies / Liberal Arts Institute of European Studies (Humboldt University), Berlin, Germany Mr. Woodhouse continues his education to maintain the MAI designation through the Appraisal Institute; and continuing education in matters of real property appraisal, acquisition, relocation, engineering, and law through the International Right of Way Association and other professional organizations to broaden scope of knowledge and provide higher levels of service.

Appraisal Institute MAI Designation, No. 446913
Member, R/W-AC, Appraisal Certified, International Right of Way Association State of California Certified General Real Estate Appraiser, No. AG034630 Appraisal Institute, Northern California Chapter, 2013-2015 and 2017-present Member, Board of Directors, 2015-2018 Courses Chair, 2018 Spring Litigation Conference Chair Conversant in Danish and German

ERIK WOODHOUSE, MAI, R/W-AC
Related Coursework:

The Appraisal Institute
Real Estate Appraisal Principles, Real Estate Appraisal Procedures, Uniform Standards of Professional Appraisal Practice (USPAP), Business Practices and Ethics, Basic Income Capitalization, Advanced Income Capitalization, Advanced Market Analysis & Highest and Best Use, Advanced Sales Comparison and Cost Approaches, Report Writing and Valuation Analysis, Advanced Applications, Introduction to Valuing Green Buildings, Spring Litigation Conference, Condemnation Appraising, The Appraiser as an Expert Witness, Litigation Appraising Successfully completed the Appraisal Institute’s Litigation Professional Development Program IRWA
Principles of Real Estate Engineering, Appraisal of Partial Acquisitions, Ethics and the Right of Way Profession
National Highway Institute
Real Estate Acquisition Under the Uniform Act: An Overview College
Real Estate Principles, Microeconomics, Macroeconomics, Sociology, Statistics Other
USPAP Continuing Education, Toastmasters International

South San Francisco City CouncilApril 26, 2023

South San Francisco City Council
April 26, 2023