Tulare City Council
September 1, 2026

and contained all of the factual disclosures provided by Government Code §7267.2(a), which is attached hereto as Exhibit C1 and C2.

Section 5. All conditions and statutory requirements necessary to exercise the power of eminent domain (“the right to take”) to acquire the interest in the property described herein have been complied with by the City.

Section 6. The City Attorney is hereby AUTHORIZED and EMPOWERED:
a. To acquire in the name of the City, by condemnation, the interest in the property described in Exhibit A, attached hereto and incorporated herein by this reference, in accordance with the provisions of the California Eminent Domain Law and the Constitution of California.
b. To prepare or have prepared and to prosecute or to retain counsel to prosecute in the name of the City such proceedings in the proper court as are necessary for such acquisition.
c. To deposit the probable amount of compensation, based on an appraisal (Exhibit D), and if needed to apply to said court for an order permitting the City to take immediate possession and use of said property for said public uses and purposes.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Tulare this 1st day of September 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Patrick Isherwood, President of the Council
and Ex-Officio Mayor
ATTEST:

By Melissa Wilcox, City Clerk
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Tulare City Council.

PAGE 1 OF 2
WO# 802058373 - NOT# 203936134
EXHIBIT “A”

LEGAL DESCRIPTION
SERIAL 73053A
APN: 172-370-32
OVERHANG EASEMENT:

THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 6, TOWNSHIP 20 SOUTH, RANGE 25 EAST, MOUNT DIABLO MERIDIAN, WITHIN THE CITY OF TULARE, STATE OF CALIFORNIA, SAID PORTION BEING DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE SOUTH LINE OF SAID SECTION 6. SAID POINT BEING THE SOUTHWESTERLY CORNER OF THOMAS TWADDLE’S SUBDIVISION RECORDED JANUARY 9TH 1890, IN VOLUME 1 OF PLATS AT PAGE 69 TULARE COUNTY RECORDS; THENCE ALONG SAID SOUTH LINE NORTH 87°40’28” WEST, A DISTANCE OF 217.25 FEET; THENCE LEAVING SAID SOUTH LINE NORTH 02°19’32” EAST, A DISTANCE OF 30.00 FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY OF STATE ROUTE HIGHWAY 137 AS SHOWN ON THE FARRAR ESTATES PHASE 1 FINAL MAP RECORDED MARCH 9, 2021 IN VOLUME 44 OF MAPS AT PAGE 66 IN THE RECORDER’S OFFICE OF SAID COUNTY, SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING;
THENCE ALONG SAID RIGHT OF WAY, NORTH 87°40’28” WEST, A DISTANCE OF 34.00

FEET TO THE WESTERLY LINE OF THE PROPERTY DESCRIBED IN THE QUITCLAIM DEED RECORDED APRIL 4, 2024 AS DOCUMENT NUMBER 2024-0015073, OF OFFICIAL RECORDS, IN TULARE COUNTY RECORDS;
THENCE NORTHERLY ALONG SAID WESTERLY LINE, NORTH 00°15’13” EAST, A DISTANCE OF 14.63 FEET;
THENCE LEAVING SAID WESTERLY LINE SOUTH 83°19’40” EAST, A DISTANCE OF

34.19 FEET;
THENCE SOUTH 00°15’13” WEST, A DISTANCE OF 12.03 FEET TO THE TRUE POINT OF BEGINNING.

ALL AS SHOWN ON EXHIBIT “B” ATTACHED HERETO AND MADE A PART HEREOF.

THE ABOVE DESCRIBED STRIP OF LAND CONTAINS 453 SQUARE FEET (0.01 ACRES), MORE OR LESS.

SUBJECT TO ANY AND ALL EXISTING MATTERS OF RECORD.

THIS DESCRIPTION IS NOT INTENDED FOR USE IN THE CONVEYANCE OF LAND IN VIOLATION OF THE SUBDIVISION MAP ACT OF THE STATE OF CALIFORNIA.

Engineering Department
411 East Kern, Tulare, CA 93274
559.684.4200 | www.tulare.ca.gov

CITY OF TULARE

NOTICE OF INTENT TO ADOPT RESOLUTION OF NECESSITY

TO OBTAIN A PUBLIC UTILITIES EASEMENT ON CERTAIN REAL PROPERTY

BY EMINENT DOMAIN
(Code of Civil Procedure, Section 1245.235)
June 30, 2026
Enrique Perez
3036 East Tulare Avenue
Tulare, CA 93274
Subject Property: Tulare County APN 172-370-32
Dear Property Owner:

The law provides procedures for public agencies to acquire private property for public use. It requires that every agency which intends to condemn property notify the owners of its intention to condemn. California Code of Civil Procedure (CCP) Section 1240.030 provides that the power of eminent domain may be exercised to acquire property for a proposed project if the following three conditions are established:
(A) The public interest and necessity require the project. (B) The project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury.
(C) The property sought to be acquired is necessary for the project.

Also, CCP Section 1245.230 requires that the offer required by Section 7267.2 of the Government Code has been made to the owner of record.

You are hereby notified that the City Council of the City of Tulare, at its Tuesday, July 21, 2026 meeting, will be asked to decide if the above conditions have been met concerning your property and, if so, to adopt a Resolution of Necessity (“Resolution”) to obtain a Public Utilities Easement (PUE) on a portion of the property. Questions regarding the amount of compensation to be paid or the value of the PUE to be acquired are not part of this proceeding and the City Council will not consider such in determining whether a Resolution should be adopted.

The City Council’s adoption of the Resolution authorizes the City to acquire the PUE by eminent domain. Within six months of the adoption of the Resolution, the City will prepare and file a complaint in Superior Court commencing the eminent domain proceeding. All issues related to the compensation to be awarded for the acquisition of the PUE will be resolved in this court proceeding. A description of the required PUE is attached to this Notice and marked Exhibit A.

The law provides you an opportunity to appear before the City Council and raise questions concerning only the three conditions referred to in CCP 1240.030 as cited above. If you file a written request to appear (within 15 calendar days from the mailing of this Notice), you are entitled to appear and object to the adoption of the Resolution.

Your written request to appear should include a statement indicating which of the three conditions listed in the first paragraph above you contend have not been met. By designating which of the conditions form the basis of your challenge and explaining why you believe they have not been met, you will enable the City Council to authorize a full and expeditious review of the project’s effect on your property. Based on this review, the City will then prepare a report to be presented to the City Council at the meeting at which you intend to appear.

Your written request to appear must actually be on file with the City Clerk within the 15-calendar day period set forth above. Failure to file a written request to appear will result in a waiver of your right to appear and be heard. All requests to appear must be sent to:

City Clerk
411 East Kern Avenue
Tulare, CA 93624
If you request an appearance, you will receive confirming correspondence with the meeting date, time, and location.

For your convenience, if you are unable to personally appear or choose to submit written objections in place of a personal appearance, the City Council will consider any written objections so long as they are filed within the 15-calendar day period set forth above. All written objections filed with the City Clerk within the 15-calendar day period will become part of the official record of the meeting at which the City Council hears the Resolution. We recommend that if you intend to appear, or if you intend to submit written objections in place of an appearance, you personally deliver your correspondence, or send it via a service that includes a tracking number to confirm that your response was received within the 15-calendar day period.

If you have any questions, please contact Mike Winton, Deputy City Engineer at [email protected] or (559) 684-4211.

Exhibit A – PUE Description
Exhibit B – June 25, 2026 Offer Letter sent by Woodside Homes

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ABOUT THE EMINENT DOMAIN PAMPHLET
SB 698 which went into effect on January 1, 2008, requires that every property owner who is the subject of an eminent domain action must be given an “informational pamphlet” outlining the property owner’s rights under the Eminent Domain Law of California.

This pamphlet has been put together through the efforts of the following organizations:

League of California Cities
California State Association of Counties
Association of California Water Agencies
California Special Districts Association
California Redevelopment Association
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EMINENT DOMAIN – Information Pamphlet (SB 698)
I. Introduction
Eminent domain is the power of the government to purchase private property for a "public use" so long as the property owner is paid "just compensation." Whenever possible, [condemning agency] tries to avoid use of the eminent domain power, exercising it only when it is necessary for a public project. The decision to acquire private property for a public project is made by the [condemning agency] only after a thorough review of the project, which often includes public hearings.

This pamphlet provides general information about the eminent domain process and the rights of the property owner in that process.1
 What is a "public use"?
A "public use" is a use that confers public benefits, like the provision of public services or the promotion of public health, safety, and welfare. Public uses include a wide variety of projects such as street improvements, construction of water pipelines or storage facilities, construction of civic buildings, redevelopment of blighted areas, and levee improvements to increase flood protection. Some public uses are for private entities, such as universities, hospitals and public utilities, which serve the public.
 What is "just compensation"?
Just compensation is the fair market value of the property being acquired by the government. The state law definition of fair market value 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."
II. The Eminent Domain Process and the Property Owner's Rights The eminent domain process begins with a public use project. When selecting a project location, the goal is to render the greatest public good and the least private injury or inconvenience. If it is determined that all or a portion of your property may

1 This pamphlet reflects the current law as of January 1, 2008. However, the information in this pamphlet is not, nor should it be construed as, legal advice. You should consult with qualified legal counsel regarding your specific situation rather than relying on this pamphlet as legal advice.
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be necessary for a public use project, the [condemning agency] will begin the appraisal process to determine the property's fair market value.  How is the fair market value of my property determined? The [condemning agency] will retain an independent, accredited appraiser familiar with local property values to appraise your property. The appraiser will invite you to accompany him or her during an inspection of your property. You may give the appraiser any information about improvements and any special features that you believe may affect the value of your property. It is in your best interest to provide the appraiser with all the useful information you can in order to ensure that nothing of value will be overlooked. If you are unable to meet with the appraiser, you may wish to have a person who is familiar with your property meet with the appraiser instead.

After the inspection, the appraiser will complete an appraisal that will include the appraiser's determination of your property's fair market value and the information upon which the fair market value is based. The appraiser will provide the [condemning agency] with the appraisal. The [condemning agency] will then make a written offer to purchase the property. The offer will also include a summary of the appraisal. The offer will be for no less than the amount of the appraisal.  What factors does the appraiser consider in determining fair market value? Each parcel of real property is different and, therefore, no single formula can be used to appraise all properties. Among the factors an appraiser typically considers in estimating fair market value are:
o The location of the property;
o The age and condition of improvements on the property; o How the property has been used;
o Whether there are any lease agreements relating to the property; o Whether there are any environmental issues, such as contaminated soil; o Applicable current and potential future zoning and land use requirements; o How the property compares with similar properties in the area that have been sold recently;
o How much it would cost to reproduce the buildings and other structures, less any depreciation; and
o How much rental income the property produces, or could produce if put to its highest and best use.
 Will I receive a copy of the appraisal?
The [condemning agency] is required to provide you with its purchase offer, a summary of the appraiser's opinion, and the basis for the [condemning agency]'s offer. Among other things, this summary must include:
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o A general statement of the [condemning agency]'s proposed use for the property;
o An accurate description of the property to be acquired; o A list of the improvements covered by the offer;
o The amount of the offer; and
o The amount considered to be just compensation for each improvement which is owned by a tenant and the basis for determining that amount.

However, the [condemning agency] is only required to show you a copy of the full appraisal if your property is an owner-occupied residential property with four or fewer residential units. Otherwise, the [condemning agency] may, but is not required, to disclose its full appraisal during negotiations (though different disclosure requirements apply during the litigation process if the issue of fair market value goes to court).
 Can I have my own appraisal done?
Yes. You may decide to obtain your own appraisal of the property in negotiating the fair market value with the [condemning agency]. At the time of making its initial offer to you, the [condemning agency] must offer to reimburse you the reasonable costs, not to exceed $5,000, of an independent appraisal of your property. To be eligible for reimbursement, the independent appraisal must be conducted by an appraiser licensed by the State Office of Real Estate Appraisers.  What advantages are there in selling my property to the [condemning agency]?
A real estate transaction with the [condemning agency] is typically handled in the same way as the sale of private property. However, there may be a financial advantage to selling to the [condemning agency].
o You will not be required to pay for real estate commissions, title costs, preparation of documents, title policy or recording fees required in closing the sale. The [condemning agency] will pay all these costs. o Although the [condemning agency] cannot give you tax advice or direction, you might also be eligible for certain property and income tax advantages. You should check with the Internal Revenue Service (IRS) for details or consult your personal tax advisor.
 If only a portion of my property is taken, will I be paid for the loss to my remaining property?
In general, when only a part of your property is needed, every reasonable effort is made to ensure you do not suffer a financial loss to the "remainder" property. The 1109302v1 36377/0001
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[condemning agency] will pay you the fair market value of the property being taken as well as compensation for any loss in value to your remaining property that is not offset by the benefits conferred by the project. The compensation for the loss in value to your remaining property is often referred to as "severance damages." Also, if any remaining part is of such a size, shape, or condition as to be of little market value, the [condemning agency] will offer to acquire that remaining part (or remnant) from you, if you so desire.
 Will I be compensated for loss of goodwill to my business? If you are the owner of a business that is conducted on the property being acquired, you may have a right to compensation for lost business goodwill if the loss is caused by the acquisition of the property. "Goodwill" consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage.
 What will happen to the loan on my property?
Where the [condemning agency] is acquiring the entire property, generally the compensation payable to the owner is first used to satisfy outstanding loans or liens as in a typical real estate transaction. Where less than the entire property is being acquired, whether outstanding loans or liens are paid from the compensation will depend on the particular facts and circumstances.
 Do I have to sell at the price offered?
No. If you and the [condemning agency] are unable to reach an agreement on a mutually satisfactory price, you are not obligated to sign an offer to sell or enter into a purchase agreement.
 If I agree to accept the [condemning agency]'s offer, how soon will I be paid? If you reach a voluntary agreement to sell your property or an interest in the property to the [condemning agency], payment will be made at a mutually acceptable time.

Generally, this should be possible within 30 to 60 days after a purchase/sale contract is signed by all parties.
 What happens if we are unable to reach an agreement on the property's fair market value?
The [condemning agency], to the greatest extent practicable, will make every reasonable effort to acquire your property by negotiated purchase. If, however, the negotiations are unsuccessful, the [condemning agency] may either file an eminent 1109302v1 36377/0001
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domain action in a court located within the same county where your property is located or it may decide to abandon its intention to acquire the property. If the [condemning agency] abandons its intention to acquire, it will promptly notify you.

If the [condemning agency] proceeds with eminent domain, the first step is for [condemning agency] staff to request authority from the [legislative body] to file a condemnation action. The approval from the [legislative body] is called a "Resolution of Necessity." In considering whether condemnation is necessary, the [legislative body] must determine whether the public interest and necessity require the project, whether the project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury, and whether your property is necessary for the project. You will be given notice and an opportunity to appear before the [legislative body] when it considers whether to adopt the Resolution of Necessity. You may want to call an attorney or contact an attorney referral service right away. You or your representatives can raise any objections to the Resolution of Necessity and the condemnation either orally before the [legislative body] or in writing to the [legislative body].

If the [legislative body] adopts the Resolution of Necessity, the [condemning agency] can file a complaint in court to acquire title to the property upon payment of the property's fair market value. The [condemning agency] is the plaintiff. Anyone with a legal interest in the property, generally determined from a title report on the property (including tenants or mortgage holders), are named as defendants. Often, the [condemning agency] will also deposit the amount the [condemning agency] believes is the "probable amount of compensation" with the State Treasurer where the complaint is filed. A deposit must be made if the [condemning agency] is seeking to acquire possession of the property before agreement is reached on the fair market value.
 Can the [condemning agency] acquire possession of my property before the property’s fair market value is determined in the eminent domain lawsuit? In some cases, the [condemning agency] may decide it needs possession of the property before the property's fair market value is finally determined. In such a case, the [condemning agency] must apply to the court for an "order for possession" to allow it to take possession and control of the property prior to resolution of the property's fair market value. The [condemning agency] is required to schedule a hearing with the court on the proposed order for possession and to give you notice of the hearing. Notice must generally be sent at least 90 days before the hearing date if the property is occupied and 60 days before the hearing date if the property is unoccupied. A judge will decide whether the order for possession should be granted.

As noted above, the [condemning agency] must deposit with the State Treasurer the probable amount of just compensation in order to obtain possession of the property.  Can I oppose the motion for an order for possession?
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Yes. You may oppose the motion in writing by serving the [condemning agency] and the court with your written opposition within the period of time set forth in the notice from the [condemning agency].
 Can I rent the property from the [condemning agency]? If the [condemning agency] agrees to allow you or your tenants to remain on the property after the [condemning agency] acquires possession, you or the tenants will be required to pay a fair rent to the [condemning agency]. Generally, such rent will not be more than that charged as rent for the use of a property similar to yours in a similar area.
 Can I withdraw the amount deposited with the State Treasurer before the eminent domain action is completed, even if I don't agree that the amount reflects the fair market value of my property?
Yes. Subject to the rights of any other persons having a property interest (such as a lender, tenant, or co-owner), you may withdraw the amount deposited with the State Treasurer before the eminent domain action is completed. If you withdraw the amount on deposit, you may still seek a higher fair market value during the eminent domain proceedings, but you may not contest the right of the [condemning agency] to acquire the property, meaning you cannot contest that the acquisition of your property is for a public purpose or is otherwise improper.

You also have the right to ask the court to require the [condemning agency] to increase the amount deposited with the State Treasurer if you believe the amount the [condemning agency] has deposited less than the "probable amount of compensation."
 Can I contest the condemning agency's acquisition of the property? Yes. Provided you have not withdrawn the amount deposited, you can challenge in court the [condemning agency]'s right to acquire or condemn the property.  What happens in an eminent domain trial?
The main purpose of an eminent domain trial is to determine the fair market value of your property, including compensable interests such as lost business goodwill caused by the taking or severance damages. The trial is usually conducted before a judge and jury. You (and any others with interests in the property) and the [condemning agency] will have the opportunity to present evidence of value, and the jury will determine the property's fair market value. In cases where the parties choose not to 1109302v1 36377/0001
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have a jury, the judge will decide the property's fair market value. Generally, each party to the litigation must disclose its respective appraisals to the other parties prior to trial.

If you challenge the [condemning agency]'s right to acquire the property, the eminent domain trial will also determine whether or not the [condemning agency] has the legal right to acquire the property. In such cases, the judge (not the jury) will make this determination before any evidence is presented concerning the property's fair market value.

At the end of the trial, the judge will enter a judgment requiring the [condemning agency] to pay fair market value. Once the [condemning agency] pays the amount listed in the judgment, the judge will enter a final order of condemnation. The [condemning agency] will record the final order with the County Recorder, and title to the property will then pass to the [condemning agency.]  Am I entitled to interest?
Anyone receiving compensation in an eminent domain action is generally entitled to interest on that compensation from the date the condemning agency takes possession of the property until the person receiving the compensation has been fully paid. The rate and calculation of the interest is determined under formulas in State law.  Will the [condemning agency] pay my attorneys' fees and costs.

In an eminent domain action, you are entitled to be reimbursed by the condemning agency for your court costs such as court filing fees. In some circumstances, you may also be entitled to be reimbursed by the condemning agency for your attorneys' fees in the lawsuit. Whether you will be entitled to receive reimbursement for your attorneys' fees will depend on the particular facts and circumstances of the case and the offers and demand for compensation made in the action.  Will I receive assistance with relocation?
Any person, business, or farm operation displaced as a result of the property acquisition is typically entitled to relocation advisory and financial assistance for eligible relocation expenses, such as moving expenses. The amount of relocation compensation is determined on a case-by-case basis in accordance with prescribed law. Relocation benefits are handled separate and apart from the determination of the property's fair market value and are not part of the eminent domain process.

III. Contact Information
We are available to answer your questions and to assist you in understanding the acquisition program and the eminent domain process. Should you desire further 1109302v1 36377/0001
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information, please contact the [condemning agency] at (___) ___-____ or your Acquisition Agent, [insert name and contact info.].

APPRAISAL REPORT

Tulare Avenue and Morrison Steet Overhang Easement
Tulare California

3036 East Tulare Avenue
Tulare, CA 93274
APN: 172-370-032

AS OF
July 24, 2026

PREPARED FOR
City of Tulare

Jacob I. Hower, MAI, R/W-AC
Mark Myers, MAI
Jeremy Hansen
Ross Lenz, MAI
1306 N. Irwin Street
Hanford, Ca 93230
Phone: (559) 582-9112
August 21, 2026
City of Tulare
Thomas W. Gaffery
411 East Kern Avenue
Tulare, CA 93274

Re: 3036 East Tulare Avenue
Tulare, CA 93274
APN 172-370-032; Tulare County
At your request, I have appraised a real property interest for the above captioned real estate. My objective was to form an opinion about the market value for an easement interest in the subject property's fee simple estate, assuming no liens or encumbrances other than normal covenants and restrictions of record.

This valuation contains analyses, opinions, and conclusions along with market data and reasoning appropriate for the scope of work detailed later herein. It was prepared solely for the intended use and intended users explicitly identified in the attached report. Unauthorized users do so at their own risk. The appraisal is communicated in the attached narrative report and conforms to the version of the Uniform Standards of Professional Appraisal Practice (USPAP) in effect on this report's preparation date.

This letter is not an appraisal report and only serves as an introduction to the attached appraisal. If this letter is disjoined from the attached appraisal report, then the value opinions set forth in this letter are invalid because the analyses, opinions, and conclusions cannot be properly understood. The value opinion must be placed in the context of the analysis.

The value opinion is affected by all the information, assumptions, hypotheses, general limiting conditions, facts, descriptions, and disclosures stated in the attached appraisal report.

A portion of subject property (Larger Parcel) is being acquired for the relocation of overhead power lines. The acquisition is an overhang easement with the owner retaining the underlying fee ownership. The City of Tulare will utilize this appraisal to establish the value of the part to be acquired along with damages to the remainder.

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 a portion of

such 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.

After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof supports the following value opinion for the subject property as of July 24, 2026:

Market Value of the Acquisition

$2,100

Respectfully Submitted,
Jacob I. Hower, MAI, R/W-AC Ross E. Lenz, MAI
CA License 3002762 CA License 043508
License Exp. Date: 11/14/2026 License Exp. Date: 1/10/2028 [email protected] [email protected]

CERTIFICATION
I certify that, to the best of my knowledge and belief:
− The statements of fact contained in this report are true and correct. − The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
− I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. − I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
− I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
− My engagement in this assignment was not contingent upon developing or reporting predetermined results.
− My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. − My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. − I have not made a personal inspection of the property that is the subject of this report. − The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
− 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, Jacob Hower, have completed the Standards and Ethics Education Requirements for Designated Members of the Appraisal Institute. − No one provided significant personal property appraisal assistance to the person signing this certification.

Jacob I. Hower, MAI, R/W-AC
CA License 3002762
License Expiration Date: 11/14/2026
[email protected]

CERTIFICATION
I certify that, to the best of my knowledge and belief:
− The statements of fact contained in this report are true and correct. − The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
− I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. − I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
− I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
− My engagement in this assignment was not contingent upon developing or reporting predetermined results.
− My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. − My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. − I have made a personal inspection of the property that is the subject of this report. − The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
− 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, Ross Lenz, have completed the Standards and Ethics Education Requirements for Designated Members of the Appraisal Institute. − No one provided significant personal property appraisal assistance to the person signing this certification.

Ross E. Lenz, MAI
CA License 043508
License Exp. Date: 1/10/2028
[email protected]

BASIC ASSUMPTIONS AND LIMITING CONDITIONS
The analyses, opinions, and conclusions contained in this appraisal report are subject to the following basic assumptions and limiting conditions. These assumptions and limiting conditions are integral to the valuation process and are intended to define the scope and limitations of the appraisal assignment.

1. Unless otherwise specifically stated in this report, title to the subject property is assumed to be good, marketable, and free and clear of all liens, encumbrances, easements, restrictions, adverse claims, and other matters that may affect value or marketability. No opinion of title is rendered. The appraiser has not conducted a title search and assumes no responsibility for legal matters affecting the property.

2. No survey of the subject property has been made by the appraiser. Property dimensions, legal descriptions, acreage, site size, flood zone information, and related physical characteristics are based on information obtained from public records, survey documents, assessor records, plans, or other sources considered reliable. The appraiser assumes no responsibility for the accuracy of such information.

3. The maps, exhibits, sketches, floor plans, photographs, aerials, and other visual aids included in this report are provided solely to assist the reader in visualizing the property and are not intended as surveys, engineering studies, or architectural renderings.

4. Information furnished by the client, property owner, governmental agencies, brokers, tenants, contractors, consultants, attorneys, accountants, public records, and other sources is assumed to be reliable and accurate unless otherwise stated in this report. The appraiser has made reasonable efforts to verify material information when possible but does not guarantee the accuracy or completeness of information supplied by others.

5. The appraiser assumes that the subject property is in compliance with all applicable federal, state, and local laws, regulations, ordinances, codes, permits, licenses, and restrictions unless otherwise stated in this report.

6. Unless otherwise stated in this report, the appraiser assumes there are no hidden or unapparent conditions of the property, subsoil, improvements, structures, mechanical systems, or utilities that would render the property more or less valuable. The appraiser assumes no responsibility for the existence of such conditions or for the expertise required to discover them.

7. The appraiser is not qualified to detect or determine the existence of hazardous substances, toxic materials, environmental contamination, mold, asbestos, urea formaldehyde foam insulation, wetlands, underground storage tanks, groundwater contamination, or other environmental conditions that may affect the subject property. Unless otherwise stated in this report, the appraisal assumes the property is free of environmental contamination and adverse environmental conditions. No environmental audit, engineering study, or scientific testing was performed by the appraiser.

8. The appraiser is not qualified to determine whether the subject property complies with the Americans with Disabilities Act (ADA) or other accessibility

requirements. Unless otherwise stated in this report, the appraisal assumes compliance with applicable accessibility laws and regulations.

9. The appraiser is not a structural engineer, architect, contractor, surveyor, geologist, environmental consultant, attorney, accountant, or other technical specialist. This appraisal is not intended to serve as an engineering, architectural, legal, accounting, environmental, or feasibility study.

10.Unless otherwise stated in this report, the appraiser assumes there are no encroachments, boundary disputes, adverse easements, zoning violations, building code violations, restrictive covenants, or other legal or physical conditions affecting the subject property that would materially impact value.

11.The appraiser assumes that all required permits, certificates of occupancy, licenses, approvals, and other governmental authorizations necessary for the current or contemplated use of the property have been obtained or can be obtained through normal administrative processes.

12.Unless otherwise stated in this report, the subject property is assumed to be under responsible ownership and competent management.

13.Any forecasts, projections, stabilized estimates, absorption estimates, market trends, discounted cash flow analyses, or estimates of future income and expenses contained in this report are based on information available and market conditions existing as of the effective date of the appraisal. Such analyses are subject to uncertainty and actual future performance may differ materially from the estimates and assumptions contained herein.

14.The effective date of the appraisal is stated in this report. The appraiser assumes no responsibility for economic, market, physical, legal, governmental, or other conditions occurring after the effective date that may affect the property or the value conclusions contained herein.

15.Unless otherwise stated in this report, the appraisal applies only to the real property rights identified herein. Trade fixtures, furniture, furnishings, equipment, inventory, business value, goodwill, intangible assets, mineral rights, water rights, development rights, air rights, or other non-realty interests are excluded from the appraisal unless specifically addressed.

16.The appraiser has not made a specific compliance survey of the property to determine conformity with building codes, fire and life safety requirements, seismic standards, flood regulations, or other governmental requirements unless otherwise stated in this report.

17.The appraiser has not conducted invasive testing or dismantled any portion of the improvements. The inspection was limited to those areas and conditions reasonably observable during the course of the inspection.

18.Any allocation of value between land and improvements contained in this report applies only to the stated use and purpose of this appraisal and may not be used independently or in conjunction with any other appraisal or analysis.

19.This appraisal report must be considered in its entirety. No portion of this report shall be used separately or out of context.

20.Possession of this report does not carry with it the right of publication. Neither the report nor any portion thereof, including value conclusions, the identity of the appraiser, or references to professional designations or organizations, shall be disseminated to the public through advertising, public relations, news media, sales materials, or other media without the prior written consent of the

appraiser, except as may be required by law, court order, governmental regulation, or professional review requirements.

21.This appraisal report is intended only for the client and intended users identified in the report for the stated intended use. Use of this report by parties other than the identified client and intended users is not intended by the appraiser. No other party should rely upon this report for any purpose.

22.The appraiser shall not be required to provide testimony, attend court, participate in depositions, arbitration, mediation, or administrative proceedings, or provide any subsequent services related to this appraisal unless separate arrangements have been made in advance.

23.Unless otherwise specifically agreed in writing, the appraisal fee does not include testimony, litigation support, consultation, deposition preparation, trial preparation, or appearance at hearings, arbitration, mediation, or court proceedings. Such services, if requested, shall be performed pursuant to a separate agreement and additional compensation.

24.The appraiser’s inspection and analysis are limited by the scope of work identified in this report. The appraiser is not responsible for matters that would require specialized expertise beyond that ordinarily employed by real estate appraisers.

25.Acceptance or use of this report constitutes acceptance of these assumptions and limiting conditions.

26.This appraisal report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) in effect as of the date of the report, as well as any applicable state and federal appraisal regulations governing the assignment.

27.The appraiser certifies that the analyses, opinions, and conclusions were developed independently and without bias, advocacy, or accommodation of any personal interest.

28.Unless otherwise stated in this report, the appraiser assumes that the subject property’s improvements, utilities, access, and site improvements are legally permitted and physically adequate for the existing use.

29.The appraiser assumes no responsibility for determining the exact location of property lines, easements, encroachments, wetlands, flood boundaries, or jurisdictional limits. Such determinations may require surveys or specialized studies.

30.If subsequent information becomes known that materially affects the analyses, assumptions, or conclusions contained in this report, the appraiser reserves the right to amend the report.

31.Any extraordinary assumptions or hypothetical conditions employed in this appraisal assignment are disclosed in the body of the report and may affect the assignment results.

32.This report was prepared solely for the intended use identified in the report. The appraisal is not intended to serve as investment advice, legal advice, accounting advice, underwriting guidance, or a recommendation to buy, sell, finance, hold, or develop the subject property.

33.The appraiser assumes no obligation to update this report after completion of the assignment for changes in market conditions, property conditions, legal matters, or other circumstances unless specifically engaged to do so.

34.The appraiser retains all workfile materials in accordance with USPAP record keeping requirements and applicable state law.

35.If any provision of these assumptions and limiting conditions is determined to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

36.The use of this report is subject to the terms of the engagement agreement, if any, executed in connection with this assignment.

TABLE OF CONTENTS
CERTIFICATION .................................................................................................................................. 3 CERTIFICATION .................................................................................................................................. 4 BASIC ASSUMPTIONS AND LIMITING CONDITIONS ............................................................................... 5 APPRAISAL OVERVIEW ..................................................................................................................... 10 SCOPE OF WORK ....................................................................................................................... 10 APPRAISAL DEFINITIONS .............................................................................................................. 11 MARKET ANALYSIS ......................................................................................................................... 13 NATIONAL TRENDS ..................................................................................................................... 13 CITY OF TULARE ......................................................................................................................... 21 PROPERTY DATA ............................................................................................................................ 31 PARCEL MAP ............................................................................................................................. 33 DESCRIPTION OF THE ACQUISITION ................................................................................................ 34 SUBJECT PHOTOGRAPHS ............................................................................................................. 35 VALUATION ANALYSIS & CONCLUSIONS .............................................................................................. 36 VALUE OF THE LARGER PARCEL ........................................................................................................ 38 SALES COMPARISON APPROACH ................................................................................................... 38 VALUATION OF THE PART ACQUIRED AS PART OF THE WHOLE ............................................................. 39 VALUE OF THE REMAINDER AS PART OF THE WHOLE ......................................................................... 39 VALUE OF THE REMAINDER AFTER THE ACQUISITION AND BEFORE CONSIDERATION OF BENEFITS ............ 39 SEVERANCE DAMAGES ................................................................................................................ 40 VALUE OF THE REMAINDER AFTER THE ACQUISITION AND AFTER CONSIDERING BENEFITS ...................... 40 NET DAMAGES ........................................................................................................................... 40 VALUATION SUMMARY ................................................................................................................. 40

APPRAISAL OVERVIEW

SCOPE OF WORK
Introduction: The larger parcel, also referred to as the “subject” or “subject property,” is a 1.39-acre homesite improved with a 2,641-square-foot residence. The property is located at the northwest corner of Tulare Avenue and Morrison Street in Tulare. Existing overhead power lines along Tulare Avenue require relocation. The City of Tulare proposes to acquire an overhang easement to facilitate the relocation. This appraisal will be utilized to establish the fair market value of the proposed acquisition and any resulting damages.

The report is communicated in a way to logically follow the appraiser’s methodology and conclusion of value. Pertinent information such as the market area, conditions, subject property, market data, analysis, and conclusions are summarized.

Effective Date of the Appraisal: Ross Lenz performed an inspection of the subject property including the site and surrounding neighborhood on July 24, 2026. The effective date of the appraisal is July 24, 2026.

Appraisal Development: This is the extent of research and analyses that produce one or more credible opinions of value for one or more specifically identified intended users and an explicitly stated intended use. Depending upon the intended use, intended users, and agreements between the appraiser and the client, the appraisal development process includes but was not limited to the following tasks:
• Observation of the property appraised and surround market area. • Research and development of a market and submarket analysis. • Search the MLS, CREXI, public record, Loopnet and other sites for comparable sales and confirm the sale with brokers or other reliable sources. • Determination of the subject’s highest and best use as vacant, as improved and after the acquisition.
• Development of one or more applicable approaches to value. • Preparation of this report following the nine-step State Rule.

Approaches to Value: Applicable and necessary approaches to value were selected for development after consideration of available market data, intended use, and intended user.

The sales comparison approach is the most applicable approach and utilized by market participants to value vacant land. The income approach and cost approach are not relevant and are excluded from the analysis.

Intended Use of the Appraisal: The appraisal will be used to establish the value of the property to be acquired and damages to the remainder.

Intended Users of the Appraisal: The client and intended user of the appraisal is City of Tulare.

Hypothetical Condition: For the purpose of valuing the subject before the acquisition, the larger parcel is assumed to be in a pre-acquisition (or possession) state. The appraised value does not include any increase or decrease in value as a result of the project.

For the purpose of valuing the remainder, the Project is assumed to have been completed in the manner proposed.

Extraordinary Assumption: My analysis of the property assumes that any site improvements will not be impacted by the overhang easement. Any site improvements within the take area are assumed to be protected in place during the installation of the new overhead lines. Use of these extraordinary assumptions might have affected assignment results.

APPRAISAL DEFINITIONS
Market Value:
a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for doing so, 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.
[California Code of Civil Procedure Section 1263.320]
Fee Simple Estate: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental police powers of taxation, eminent domain, police power, and escheat.1
Larger Parcel: In governmental land acquisitions and in valuation of charitable donations of partial interest in property such as easements, the tract or tracts of land that are under the beneficial control of a single individual or entity and have the same, or an integrated, highest and best use. Elements for consideration by the appraiser in making a determination in the regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership and unity of highest and best use. In most states, unity of ownership, contiguity, and unity of use are the three conditions that establish the larger parcel for the consideration of severance damages. In federal and some state cases, however, contiguity is sometimes subordinated to unitary use.2

1 The Dictionary of Real Estate Appraisal, Sixth Edition, 2015. 2 ibid

Partial Taking: The taking of part of a property for public use under the power of eminent domain; requires the payment of compensation.3
Remainder: In eminent domain condemnation, that portion of a larger parcel remaining in the ownership of the property owner after a partial taking.4

Damages: Damage to the remainder is the damage, if any, caused to the remainder by either or both of the following:
(a) The severance of the remainder from the part taken. (b) The construction and use of the project for which the property is taken in the manner proposed by the plaintiff whether or not the damage is caused by a portion of the project located on the part taken. [California Code of Civil Procedure Section 1263.420] Easement: The right to use another’s land for a stated purpose.5

3 ibid
4 The Dictionary of Real Estate Appraisal, Sixth Edition, 2015. 5 ibid

MARKET ANALYSIS

NATIONAL TRENDS

Economic Data: National economic conditions remain unsettled, with inflation, interest rates, capital availability, and investor risk tolerance continuing to influence real estate markets.

Key factors are summarized as follows:
• Inflation increased rapidly from 2021 to mid-2022, reaching a 40-year high of 9.1% in June 2022. In response, the Federal Reserve implemented quantitative tightening and raised interest rates aggressively. The most recent CPI report indicated inflation of

4.2% in May 2026, with core inflation at 2.9%, both remaining above the Fed’s longterm 2.0% target. • The Federal Reserve raised rates through 2022 and 2023, holding the target range near 5.25% to 5.50% through September 2024. As of June 2026, the federal funds target range is 3.50% to 3.75%. Although below the recent peak, borrowing costs remain elevated and continue to affect underwriting, debt service coverage, and investor return requirements.
• As of May 2026, the national unemployment rate was 4.3%, reflecting a gradual increase over the prior year but still indicating a relatively stable labor market. • The NASDAQ, S&P 500, and Dow Jones Industrial Average entered bear market territory in 2022 but have since recovered and reached new highs. Volatility remains elevated due to inflation concerns, interest rate uncertainty, geopolitical risk, and changing expectations for monetary policy.
• The two-year/ten-year Treasury yield curve inverted on July 6, 2022, and remained inverted until mid-September 2024. Although historically associated with recession risk, the extended inversion coincided with economic deceleration and asset repricing rather than a broad-based downturn.
• The national average 30-year fixed mortgage rate increased from 2.65% in January 2021 to 6.52% as of June 11, 2026, remaining well above the historically low rates that supported real estate appreciation during 2020 and 2021.

Collectively, these factors have contributed to slower transaction activity, more cautious underwriting, and a repricing of risk across real estate sectors. The following chart compares the inflation rate, Federal Reserve target rate, all-property capitalization rate according to PwC, and average 30-year mortgage rate since January 2021.

Interest Rates: During the COVID-19 pandemic, the Federal Reserve implemented quantitative easing, lowering the federal funds rate to near zero for approximately two years to support economic activity. At the same time, Congress enacted more than $5 trillion in fiscal stimulus. These policies created an extended period of abundant liquidity, which significantly increased demand amid constrained supply. As a result, inflation accelerated to a 40-year high in mid-2022. In response, the Federal Reserve reversed course, implementing quantitative tightening and raising interest rates aggressively. While the Fed has since begun easing policy, inflation remains above its long-term target of 2.0%. The following chart illustrates the Federal Reserve’s interest rate adjustments since 2022.

As the Fed increased the target interest rate, treasury rates and mortgage rates were also impacted.

Two-Year/Ten-Year Yield Curve: Investors rely on U.S. Treasury yields to assess future economic conditions, with the 10-Year Treasury commonly used as a proxy for long-term interest rates, mortgage pricing, and investor confidence. Comparing the 10-Year Treasury to shorter-term yields, such as the 2-Year Treasury, provides a key indicator of economic expectations. Changes in the spread between these rates—and the resulting shape of the yield curve—offer insight into anticipated growth, inflation, and monetary policy.

When markets anticipate stronger economic growth, higher inflation, or tighter monetary policy, the yield curve steepens, with the 10-year yield exceeding the 2-year yield. Conversely, expectations of slower growth, easing inflation, or accommodative Fed policy cause the yield spread to narrow or invert. An inverted yield curve, in which the 2-year yield exceeds the 10- year yield, has historically signaled elevated recession risk. While not infallible, such inversions have preceded the past eight U.S. recessions, with limited false signals, including late 1966 and a near-flat curve in 1998.

The following chart illustrates the two-year/ten-year yield curve since 1976, with shaded areas representing U.S. recessions, each preceded by a yield curve inversion.

The following chart illustrates the two-year/ten-year yield curve since the beginning of 2021.

After a brief inversion in April 2022, the curve inverted more persistently on July 6, 2022, remaining inverted until mid-September 2024. While yield curve inversions have historically preceded U.S. recessions, the extended 2022–2024 inversion ultimately coincided with a prolonged economic slowdown and asset repricing rather than a broad-based recession, underscoring that the signal is not infallible.

The following chart illustrates the one-year Treasury yield since 1976, which has historically tended to peak ahead of periods of economic or financial stress. Unlike the two-year/ten-year yield curve, the one-year yield does not invert but instead typically reaches a cyclical high prior to market slowdowns. In the most recent cycle, the one-year Treasury yield peaked at approximately 5.46%, slightly exceeding the level observed ahead of the 2008–2009 Great Recession. While this peak signaled elevated risk and tightening financial conditions, it ultimately preceded a period of asset repricing and economic deceleration rather than a broad-based recession.

When the Federal Reserve reduced interest rates in 2020, Treasury bills offered minimal yields, prompting investors to seek returns in real estate, often at cap rates in the 4% to 5% range. As monetary policy tightened, short-term Treasury yields increased— with the one-year Treasury now around 3.5%—leading to a repricing of risk across asset classes. As a result, property cap rates have generally expanded, though unevenly across sectors, reflecting not only higher risk-free rates but also differences in income stability, leasing risk, and asset quality.

The following is taken from Morgan Stanley’s 2026 Economic Outlook. “The year ahead brings an unusually broad range of possibilities for inflation and global growth. Global gross domestic product (GDP) is likely to moderate to an estimated 3% (4Q/4Q) in 2025 and 3.2% in both 2026 and 2027, while inflation cools across different regions, allowing policymakers to reduce interest rates further, according to Morgan Stanley Research.

Strong household finances and growing wealth are keeping Americans spending. At the same time, businesses continue to invest in AI, even as the pace of those investments starts to level off.

“These two factors—strength in consumption and business spending—were why we never called for a recession early in 2025, when markets pulled back on trade policy fears,” explains Seth Carpenter, Morgan Stanley’s Chief Global Economist. “The U.S. remains the most likely economy to drive material upside to global growth.”

However, uncertainty remains high and the range of possible outcomes is wide: On one hand, consumer demand or AI-driven productivity could boost growth above the baseline forecast; on the other hand, the U.S. economy could be hit harder than expected by issues including monetary policy, tariffs and immigration.

“The exact path depends on the strength of the consumer amid a slowing labor market and when AI adoption increases productivity gains meaningfully,” Carpenter says.”6 Real Estate: Real estate values increased modestly between 2013 and 2020, with brief disruption in early 2020 due to the COVID-19 pandemic. Over the subsequent two years, values appreciated rapidly, driven by historically low interest rates, fiscal stimulus, and constrained supply. Beginning in mid-2022, the Federal Reserve’s aggressive interest rate hikes slowed market activity, leading to reduced transaction volume and a period of price stabilization rather than broad-based declines.

The following chart summarizes average U.S. residential mortgage rates and home values from 1975 through 2025. Commercial mortgage rates are typically higher than residential rates, reflecting shorter amortization periods, balloon structures, and higher underwriting risk. 6 2026 Economic Outlook: Moderate Growth with a Range of Possibilities

According to FRED economic data, the average 30-year mortgage rate since 1975 is approximately 7.69%, while the average home price over that period is roughly $188,500. By comparison, current mortgage rates are near 6.40%, with the median U.S. home price around $435,000. The last period in which mortgage rates were around 6.40% was late 2008, when the median US home price was around $200,000, underscoring the affordability challenges facing today’s residential market. Rather than triggering widespread price declines, these conditions have constrained transaction volume, leading to reduced activity across mortgage lending, brokerage, title, and appraisal services.

The commercial real estate sector faces similar pressures, though loan structures differ meaningfully from residential financing. Commercial loans typically feature shorter amortization schedules and balloon payments due after five to ten years, increasing exposure to refinancing risk. Lending institutions generally require loan-to-value ratios near 60% and debt service coverage ratios of approximately 1.20, limiting leverage and reducing purchasing power as interest rates rise.

Collectively, these dynamics have contributed to a prolonged market adjustment characterized by cautious buyers, firm pricing expectations among sellers, and limited transaction volume. As a result, pricing discovery has slowed, and transactional data remains constrained, even as financing conditions gradually normalize.

The following is taken from Colliers 2026 CRE Outlook:
“After several years of uncertainty, 2026 could mark a turning point for the U.S. commercial real estate sector. A broad rebalancing of fundamentals is underway as financing conditions stabilize, occupier demand strengthens, and confidence returns.

Leasing and sales are gaining momentum as capital re-engages and pricing expectations move closer to equilibrium. With investors and lenders adapting to a more disciplined yet steady environment, the industry can enter the year with renewed energy and a clearer path toward growth.

The office sector is nearing its bottom as employers and employees settle into more balanced work-life routines. Vacancy rates are approaching their cyclical peak, signaling stabilization on the horizon. In contrast, the industrial and multifamily markets are both moving toward equilibrium as new construction moderates and demand realigns with sustainable growth. Developers in both are showing greater discipline, and absorption is once again aligning with long-term fundamentals, helping restore balance after several years of volatility.

Retail continues to be resilient because of selective expansion, experiential formats, and the strength of well-capitalized tenants. Disciplined growth and limited new supply have made retail one of the most stable performers in commercial real estate.

Long-term changes underway in certain sectors of the economy are directly affecting real estate planning. For example, momentum in the digital economy remains strong, but exceptional growth in data centers fueled by AI and cloud computing is spurring mounting challenges in power, water, and zoning availability, creating new pressures.

Healthcare is moving toward outpatient care as convenience and cost efficiency reshape delivery models. At the same time, upscale hospitality is benefiting from spending by affluent travelers despite intensifying competition on value. The life sciences sector is also transforming as emerging technologies, AI-driven research, and shifting investment priorities redefine how and where innovation occurs. These dynamics underscore the industry’s ongoing rebalancing, as each sector finds its footing within a more disciplined and resilient market.

While policy uncertainty, persistent inflation, and labor constraints will continue to influence decisions, the commercial real estate sector appears to be entering 2026 with greater clarity and growing confidence. Inflation is likely to remain above the Federal Reserve’s long-term target, and workforce challenges such as skilled labor shortages and tighter immigration policies will continue to test growth and efficiency.

Meanwhile, evolving patterns in how people live, work, and consume are reshaping demand in all asset classes. The evolution of the office after the pandemic is now influencing multifamily design, retail strategy, hospitality experiences, and even the site selection of data centers. As flexibility, convenience, and digital integration become universal priorities, property types become more dynamic and

interconnected. In 2026, macroeconomic forces, technological change, and demographic trends will define the key economic themes.”7 Summary: The U.S. economy has experienced prolonged volatility in recent years, driven by elevated inflation, higher interest rates, shifting trade policies, and increasing regulatory and geopolitical complexity. While many economists anticipated a mild recession in late 2024, the economy instead entered a period of uneven growth and sector-specific stress rather than a broad-based downturn. In early 2025, business sentiment improved amid expectations of a more supportive policy environment; however, ongoing trade uncertainty and geopolitical developments continued to contribute to episodic market volatility.

Entering 2026, uncertainty persists with respect to inflation, monetary policy, and global trade dynamics. Nevertheless, industry research suggests that portions of the commercial real estate market are transitioning toward stabilization following several years of adjustment.

Financing conditions are gradually normalizing, investor confidence has improved modestly and select asset classes are beginning to rebalance as pricing expectations and capital markets align more closely. At the same time, accelerating advancements in artificial intelligence are influencing both near- and long-term economic conditions, introducing shortterm labor market disruption, particularly in certain white-collar segments, while reshaping long-term demand patterns across multiple real estate sectors. 7 Colliers 2026 CRE Outlook: The 2026 Reset: Stability Through Uncertainty

CITY OF TULARE
Overview: Tulare County is situated in the
southern half of the San Joaquin Valley, an eightcounty region centralized within the State of California. Tulare is the second largest city in
Tulare County and one of the oldest between
Stockton and Los Angeles. The city is about 175
miles north of Los Angeles, and 230 miles south
of San Francisco along the corridor of Highway

99. Highway 99 stretches from Sacramento to
Interstate 5 in Kern County.

Transportation: Highway 99 bisects Tulare in a north-south direction and provides access throughout the central portion of the State of California. Highway 198 is 10-miles north and provides access to Hanford, Lemoore and Interstate 5 to the west. Highway 198 also provides access to Visalia and the Sierra Mountains to the east. The proximity of Highway 99 makes Tulare a good candidate for warehousing and large manufacturers with easy access throughout Central California.

Economic Data: Recent economic statistics for the city of Tulare are summarized below and provided by the US. Census Bureau: 8

Agriculture: Tulare County is a national leader in terms of agricultural production. Agriculture is the mainstay of the county's economic base, accounting for $8,344,115,750 in total crop value in 2024. This represents a 6% increase from the 2023 amount. Over 150 commodities are produced in Tulare County with 44 of these grossing over $1 million annually. There are over 90 countries receiving commodities grown in Tulare County. The top ten are the Republic of Korea, Mexico, Japan, China, Taiwan, Viet Nam, Canada, Australia, India and the Republic of Türkiye. 9
The top export commodities are summarized as follows:
8 U.S. Census Bureau
9 Tulare County Crop Report 2024
Total Population (July-2023) 71,092
Percent growth rate (3 Years): 3.2%
Average household size: 3.39
High school graduate or higher: 76.5%
Bachelor’s degree or higher: 10.7%
Median household income: $69,517
Per-capita income: $26,459
Mean travel time to work: 22.4 minutes
Owner-occupied housing units: 58.5%
Unemployment Rate (Dec-2024): 10.2%

The following chart summarizes the top ten commodities in terms of total value in 2024.

Tulare County is the top dairy-producing county in California and the nation. Tulare County produces 5% of the U.S. milk supply. In 2005 milk became the first commodity to exceed one billion dollars for any county in California’s history. This caused an expansion of existing milk processing plants and the creation of new facilities in the County. Despite difficulties in the dairy industry, milk continues to top Tulare County’s most productive commodities at over

2.039 billion dollars. According to the 2022 USDA census of all farms in California, Tulare County contains about 30% of the state's dairy cows. According to the census, it has 177 dairies with more than 500 cows, 54 of which have digesters either operating or under construction.”10
Large cheese producers such as Kraft Foods, California Dairies, Saputo Cheese, and Land O’Lakes have production plants in Tulare County. Small specialty cheese makers have also moved into Tulare County. Thirty years ago, only 2% of California milk was used to make cheese with that number increasing to 47% today. There are 312 dairies in Tulare County, which produce an average of 9,768 gallons of milk per day. 11 The following data is provided by NCREIF Farmland Index Q4 2024 and summarizes national farmland income and appreciation trends.
10 UC Davis, Ag Data News: Where are California’s Dairy Cows? 11 California Dairy Statistics Annual 2018

As an investment, farmland delivers more consistent returns without the downside risk of a bearish stock market. For this reason, institutional assets developed to long-term permanent plantings, favorable both domestically and internationally, should remain an attractive investment.

Ranches with good soils, reliable surface water supplies, and plentiful ground water command a premium and set the upper tier of the survey. The lower end is bracketed by sales within water districts with less reliable supplies or land without surface water. Land values for properties without surface water have softened due to SGMA concerns.

Office: There are no published reports for the Tulare office market. Our observation of the local market is based on a visual survey of several office parks, a search of local real estate listings, CoStar’s Visalia Office Market Report and conversations with local real estate brokers.

A wide range of listings were noted throughout Visalia. We surveyed the five major commercial brokerage firms that market office properties locally. Asking rates are generally between $0.60 and $2.55 per square foot. Expense structures are predominantly gross or triple net.

The following charts are from the Q3 2025 Costar Visalia Office Market Report and summarize the sale and rental trends in the city.

“Estimated office market pricing in Visalia is $167/SF compared to the national average of $265/SF. Average market pricing for Visalia is estimated at $330/SF for 4 & 5 Star properties, 218/SF for 3 Star assets, and $131/SF for 1 & 2 Star buildings. The estimated market cap rate for Visalia office is 10.2% compared to the national average of 9.0%.”12 “The Visalia office market has a vacancy rate of 3.4% as of the first quarter of 2025. Over the past year, the market's vacancy rate has changed by 0.2%, a result of 39,000 SF of net delivered space and 20,000 SF of net absorption. Visalia's vacancy rate of 3.4% compares to the market's five-year average of 3.0% and the 10-year average of 3.6%.”13 12 Q3 2025 Visalia Office Report, Costar
13 Costar Visalia Office Market Report Q3 2025

6 F
14 The covid-19 pandemic and government shutdowns led to many employers allowing their staff to work from home. Four years after the pandemic began, employers across the country are still having difficulty bringing their workforce back to the office. Others have opted to continue to allow remote work. The prolonged remote work environment is having a negative impact on the office market, especially in larger cities which are reporting increased vacancies and declining rental rates. Smaller cities, like Visalia, have been somewhat impacted, but to a lesser extent. Looking ahead, sale prices and rental rates are expected to remain stable, with the potential for modest increases.

Industrial: There are no published reports for the Tulare industrial market; therefore, we have reviewed CoStar’s Visalia report. Visalia has positioned itself as a distribution warehouse hub due to its central location within the state and lower land values relative to larger markets.

There is new construction in progress and there are several newly completed projects.

Substantial construction started in the early 2000’s with new space added annually with that pace notably increasing in recent years.

Amazon built a new fulfillment center on Riggin Avenue, east of Plaza Drive with over 1 million square feet of space. UPS purchased 58 acres at the northeast corner of Plaza Drive and Riggin Avenue and developed a new 400,000 square foot cross-dock facility. The Amazon and UPS projects combine for 1,700 new jobs. Golden State Overnight also moved to a new 63,000 square foot building, after vacating their former space. There are several other new 14 Costar

distribution warehouses in this sector that have been added in the past two years with additional space under construction.

Fresno once provided strong competition to Visalia, but that trend has shifted with the arrival of the new UPS hub and improved access, reaching 95% of the California overnight.

Additionally, there is opposition within Fresno for new industrial growth in the southern part of town. Nick Audino of Newmark Pearson Commercial says “the challenges to the CEQA process (in Fresno) has had a chilling effect.” He also stated that the strong growth in Visalia “is a result of the extremely low vacancy factor” and that the pace of development “has no end in sight11F

15.”

The following charts are from the Q3 2025 Costar Visalia Industrial Market Report and summarize the sale and rental trends in the city.
“Estimated industrial market pricing in Visalia is $86/SF compared to the national average of $158/SF. Average market pricing for Visalia is estimated at $87/SF for logistics properties, $92/SF for flex assets, and $83/SF for specialized buildings. The estimated market cap rate for Visalia industrial is 7.2% compared to the national average of 7.3%.”16 15 Explosion of New Development on Tap at Visalia Industrial Park, SunGazzette 16 Q3 2025 Visalia Industrial Report, Costar

“The Visalia industrial market contains roughly 45.7 million SF of inventory. The market has approximately 31.4 million SF of logistics inventory, 490,000 SF of flex inventory, and 13.8 million SF of specialized inventory. Market rents in Visalia are $8.80/SF. Rents average around $8.30/SF for logistics buildings, $9.40/SF for flex properties, and $9.70/SF for specialized assets.”17
17 Costar Visalia Industrial Market Report Q3 2025

Residential: According to the Multiple Listing Service, price trends for single family residences are as follows:

MLS Statistics - City of Tulare
Year Units Sold Avg. Price Avg. D.O.M.
2014 599 $176,093 59
2015 632 $188,177 56
2016 683 $211,256 52
2017 654 $220,557 47
2018 701 $231,364 53
2019 733 $250,451 89
2020 681 $266,735 38
2021 645 $322,632 20
2022 576 $349,674 22
2023 550 $371,034 37
2024 548 $376,554 36
The single-family real estate market bottomed somewhere in late 2011 or early 2012. From the low, the market increased at a rate near 10% per annum until 2020, when the market boomed due to low interest rates and exorbitant government stimulus.

In the middle of 2022, the Fed began raising interest rates to fight inflation and as a result, the residential market has stagnated. Prices are now stable and marketing times are

extended. Apartments are available in all sectors from entry level to luxury. Typical rents range from $800 for a studio to over $2,500 for a larger luxury unit.

Retail: Tulare has a wide range of retail services. Major regional facilities have been built in and around the Prosperity Avenue/Highway 99 interchange. The largest improvement in the neighborhood is the Horizon Outlet Center, which extends from Prosperity Avenue to Leland Avenue, along the east line of Highway 99. The center has been built in phases and includes stores such as Bass Company Store, Van Heusen, Ralph Lauren, Calvin Klein, Nike, Galaxy Theatre, Gap, Liz Claiborne, Banana Republic, and Eddie Bauer.

Wal-Mart is situated at the northeast corner of Prosperity and Blackstone along with FoodsCo, which is a large warehouse grocery store. National retailers such as Target, Lowe’s, Home Depot, Walgreen’s, CVS, and Big 5 Sporting Goods are all located in this sector. Several small retailers and restaurants populate the area as well. There is an ample amount of land in this sector to allow for continued growth.

Summary: Tulare is located in the southern San Joaquin Valley along State Route 99, with regional connections to State Route 198 approximately 10 miles north. The city serves a county economy in which agriculture and related processing remain prominent, while manufacturing, distribution, retail, public-sector employment, and residential development provide additional economic activity. The document indicates that population increased over the three years preceding July 2023 and reports a December 2024 unemployment rate above 10%, reflecting both growth and continuing labor-market constraints. Commercial activity is concentrated in established corridors, including the Prosperity Avenue/State Route 99 interchange, while Tulare’s freeway access supports regional goods movement and access to larger Central Valley markets. Available office, industrial, and retail observations rely substantially on Visalia-area data because published Tulare-specific market surveys were not identified; accordingly, those indicators provide regional context rather than direct evidence of conditions affecting the subject property. Elevated interest rates and inflation may constrain purchasing power and transaction activity, but the extent of any effect on the subject property requires analysis of its specific market segment, location, and competitive position.

PROPERTY DATA
Larger Parcel Description: The larger parcel is identified in the following picture and consists of Assessor’s Parcel Number (APN: 172-370-032). According to the assessor’s parcel map, the site is 1.39 acres or 60,548 square feet.

Property Ownership: The larger parcel is under the following ownership:

Enrique Zavala Perez
The property has been under the same ownership for many years. There have been no sales of the subject in the three years prior to this appraisal. The subject is not listed for sale or lease.

Zoning: The subject is zoned Rural Residential by the city of Tulare. “The purpose of the R-1- 20 zone is to provide living areas within the city where development is limited to very low density concentrations of one-family dwellings at a density of zero to two dwellings per gross

acre, where mini-farms or ranchettes may be developed with the allowance for limited numbers of livestock to be raised and crops to be grown.”18

Shape & Topography: The subject has level topography and is near street grade. The rectangular shaped parcel is 1.39 acres or 60,548 square feet.

Access: The site has access from Tulare Avenue (State Route 137) and Morrison Street.

These are both asphalt paved streets and maintained by the City.

Utilities: Municipal utilities such as water, sewer and storm drainage are provided by the City of Tulare. Public utility companies provide gas, electrical and telephone services at prevailing market rates.

Offsites: The Tulare Avenue frontage is improved with concrete curb and gutter with asphalt sidewalk. There are no off-site improvements in place along Morrisson Street.

Easements/Encroachments: I have not reviewed a preliminary title report, which is a contingency of this appraisal. No adverse easements that would negatively impact the site were noted upon visual observation.

Other Factors: The subject is not within a flood zone, seismically active zone, or wetlands area.

A title report was not provided. Typical utility and access easements are assumed and do not affect the site's marketability.

Building Improvements: The property is improved with a rural residence and related site improvements. The house is located on the north end of the site and is 2,641 square feet in size. It has a 3-bedroom, 3-bathroom configuration. Site improvements include an asphalt driveway, various out buildings, animal pens, perimeter fencing and landscaping. 18 City of Tulare Zoning Ordinance Chapter 10.68: Light Industrial District

PARCEL MAP

DESCRIPTION OF THE ACQUISITION
There is a single acquisition from the subject property. The area to be acquired is located at the southwest corner of the site. According to the exhibit below it will cover an area of 453 square feet. The acquisition is an overhang easement. Therefore, powerlines will occupy the airspace over the subject, but nothing will be placed at ground level. This will reduce the utility of the part to be acquired, but the total size of the subject property will not be reduced. As indicated by the extraordinary assumption, any site improvements such as fencing will be protected in place.

SUBJECT PHOTOGRAPHS
South property line looking northwest
from the southeast corner.
.

View of the southwest corner and
proposed easement area.

VALUATION ANALYSIS & CONCLUSIONS

Highest and Best Use in the Before Condition
In the valuation of the subject property, consideration has been given to its highest and best use. The highest and best use analysis involved a study of the present use of the property, uses of surrounding properties, and zoning availability for the subject. Highest and best use may be defined as follows:
“The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value” (The Appraisal of Real Estate, 6th Edition, p.275) For highest and best use of both the land as if vacant and the property as if improved, a use must meet four criteria. The criteria for highest and best use are that the use must be physically possible, legally permissible, appropriately supported, and financially feasible.

Usually, these criteria are considered sequentially as it makes no difference whether a use is financially feasible if it is physically impossible to construct the improvements or if such an improvement is not legally permitted.

There are two types of highest and best use - “as though vacant” and “as improved.” The former presumes the land is vacant and available for development. The latter considers whether the improvements should be retained as is, renovated, remodeled, repaired, enlarged, demolished, or converted to an alternate use. Although the larger parcel is improved with a residence the acquisition involves a small unimproved portion of the property. In this case only the “as vacant” analysis is necessary and completed.

Highest And Best Use As Vacant – (Before the Acquisition) The subject of this appraisal is designated within a zone that allows for rural residential use.

Development restrictions are imposed by the City of Tulare. Any new buildings must conform to the zoning ordinance. The site is legal and conforming.

Physically the site is well suited for development. The shape, size and topography support development and are generally unrestrictive. Access and visibility are via the Tulare Avenue and Morrison Street frontages. All utilities are available.

New construction is ongoing throughout Tulare, including residential, industrial and retail. It remains prudent for developers to establish some level of pre-leasing if speculative construction is planned. Owner-users do not require as much of a return in their commercial developments; they are a benefit for existing businesses. Construction costs for either type of development should remain within reasonable expectations of market standards.

Superadequacies are a form of obsolescence that will not be realized by the market.

Considering the location, physical capabilities, and development restraints imposed by the City of Tulare, the highest and best use, as vacant, is to develop the site to rural residential use. The most likely buyer is an owner-user.

Highest and Best Use – (After the Acquisition)
After the acquisition, the subject is not reduced in size and remains a desirable rural home site. Only a small portion at the southeast corner of the site has some reduced utility as a result of the acquisition and this will not hinder development. The house and other structures are located at the opposite end of the property and are not significantly impacted by the acquisition. Any site improvements in the take area are assumed to be protected in place.

The highest and best use of the property is for continued use as a rural homesite. The most likely buyer is an owner user.

VALUE OF THE LARGER PARCEL

SALES COMPARISON APPROACH

The sales comparison approach is based upon the principle of substitution. This principle contends an informed buyer would pay no more for a property than the price of acquiring an equally desirable substitute in an open, competitive market. The surrounding market was searched for sales of similar properties. The market data is summarized on the following pages:

LS 1 LS 2 LS 3 LS 4 LS 5
Location 1313 E. Kern Ave. 629 S. Spruce St. 436 E. Addie Ave. 1686 E. Foster Dr. 1686 E. Foster Dr., #H Tulare Tulare Tulare Tulare Tulare
APN 177-100-009 177-080-013 087-073-059 182-100-019 182-100-014 Buyer Cortez and Herrera SCO General Contractor Fernando Navarro Julio Avila Shawn Team Seller Racca Bartalome Trust Maria Gonzales HJ & Gutierrez Trust Timothy Bunn Reccorp LLC Sales Date Feb-24 Jul-25 Oct-25 Dec-25 Apr-26
Doc. No. 6165 32589 52033 61209 18143
Price $350,000 $90,000 $82,000 $215,000 $215,000
Price/Sq. Ft. $4.18 $4.59 $5.70 $4.08 $3.29
Land Acres 1.92 0.45 0.33 1.21 1.50
Land Sq. Ft. 83,635 19,602 14,375 52,708 65,340
Zoning Single-Family Single-Family Single-Family Single-Family Single-Family Orientation Private Drive Interior Interior Private Drive Private Drive Utilities All Municipal All Municipal All Municipal All Municipal All Municipal Off-sites None C-G None None None
Adjustments
Property Rights 0% 0% 0% 0% 0%
$4.18 $4.59 $5.70 $4.08 $3.29
Financing 0%0%0%0%0%
$4.18 $4.59 $5.70 $4.08 $3.29
Conditions of Sale 0% 0% 0% 0% 0%
$4.18 $4.59 $5.70 $4.08 $3.29
Exp. After Sale 0% 0% 0% 0% 0%
$4.18 $4.59 $5.70 $4.08 $3.29
Market Conditions 5% 5% 0% 0% 0%
Sub-Total $4.39 $4.82 $5.70 $4.08 $3.29
Location Inferior Similar Similar Inferior Inferior
Land Size Inferior Superior Superior Similar Similar
Zoning Similar Similar Similar Similar Similar
Orientation Inferior Similar Similar Inferior Inferior
Utilities Similar Similar Similar Similar Similar
Off-sites Similar Similar Similar Similar Similar
Total Rating Inferior Superior Superior Inferior Inferior Adj. Price/S.F. $4.39 $4.82 $5.70 $4.08 $3.29

SUMMARY OF LAND SALES

Analysis & Conclusion: Adjustments were considered f
or various factors and are summarized in the lower half of the sales chart. After adjustments, the comparable sales range from $3.29 to $5.70 per square foot.

The comparison process indicates that the subject should be valued above the $3.29 to $4.39 per square foot indicated by Sales 1, 4, and 5 and below the $4.82 to $5.70 per square foot indicated by Sales 2 and 3. This results in a potential range of $4.39 to $4.82 per square foot. A unit value of $4.80 per square foot is selected and applied to the larger parcel.

The value is calculated as follows:
60,548 S.F. = @ $4.80 per S.F. = $290,630

VALUATION OF THE PART ACQUIRED AS PART OF THE WHOLE
The larger parcel, acquisition and remainder is summarized in the following chart.

The value of the part acquired is calculated as follows:

Because the acquisition is an overhang easement, the underlying fee interest in the encumbered portion will remain with the owner. The owner’s remaining interest in the encumbered portion is estimated at 5%; therefore, 95% of the fee value of the 453-squarefoot easement area is applied to estimate the value of the rights acquired.

VALUE OF THE REMAINDER AS PART OF THE WHOLE

VALUE OF THE REMAINDER AFTER THE ACQUISITION AND BEFORE CONSIDERATION OF BENEFITS After the acquisition, the remainder is a viable rural residential property with no damages resulting from the acquisition. The acquisition is an overhead easement that covers a small Larger Parcel 60,548 Sq. Ft.

Easement Acquisition 453 Sq. Ft.

Remainder 60,548 Sq. Ft.

Easement Acquisition 453 S.F. X $4.80 per S.F. = $ 2,174 Proportionate Value of Easement 95%
Value of the Acquisition $ 2,066
Value of the Larger Parcel before the acquisition $ 290,630 Value of the part taken $ 2,066
Value of the Remainder as part of the whole $ 288,565

potion of the property at the southwest corner of the site. No structures are located in or near this area and any site improvements will be protected in place. Therefore the value of the remainder before benefits is $288,565.

SEVERANCE DAMAGES
Severance damages are the difference between the value of the remainder as part of the whole and the value of the remainder after the acquisition, before consideration of benefits.

VALUE OF THE REMAINDER AFTER THE ACQUISITION AND AFTER CONSIDERING BENEFITS

There are no benefits. The resulting after-condition value, considering benefits, is $288,565.

NET DAMAGES
Any benefits to the remainder offset damages to the remainder. There are no benefits; therefore, the Net Damages are equal to the Severance Damages.

VALUATION SUMMARY
Value of the remainder as part of the whole $ 288,565
Value of the remainder without benefits $ 288,565
Severance Damages $ -
Value of the Larger Parcel $ 290,630
Value of the Part Taken as Part of the Whole $ (2,066) $ 2,066 Value of the Remainder as Part of the Whole $ 288,565
Value of the Remainder, Before Benefits $ 288,565
Damages $ -
Remainder with Benefits $ 288,565
Benefits $ -
Net Severance Damages $ -
Fair Market Value of Permanent Rights $ 2,066
Fair Market Value of the Temporary Rights $ -
Fair Market Value of Permanent and Temporary Rights Rounded $ 2,100

SUMMARY OF FAIR MARKET VALUE

Addenda
Qualifications of Jacob I. Hower, MAI, R/W-AC
[email protected]
www.jhower.com

STATE OF CALIFORNIA CERTIFICATION
California Certified General Real Estate Appraiser #3002762

PROFESSIONAL AFFILIATIONS
The Appraisal Institute - designated member
International Right of Way Association- designated member

APPRAISAL EXPERIENCE
J. Hower & Associates, Inc. Hanford, CA January 1, 2022 – Present, CEO Simon & Hower, Inc. Hanford, CA January 1, 2018 - Present, CEO Simon Company Inc. Hanford, CA 2010-January 1, 2018, Real Estate Appraiser

EDUCATION

California State University, Fresno
Bachelor of Science, Criminology- Law Enforcement Option – 2008

Appraisal Institute
Numerous courses including all prerequisites to attain the MAI designation and multiple condemnation and litigation courses/seminars.

International Right of Way Association
Numerous courses and prerequisites to attain the R-W/AC designation.

TYPES OF PROPERTIES APPRAISED

Commercial Properties
Office, medical, industrial, apartments, retail, subdivisions, vacant land, self-storage, special purpose, cold storage, warehouse, packing facilities.

Agricultural
Nut crops, stone fruit, citrus, irrigated field crops, rangeland, conservation easements, vineyards, dairies.

RIGHT-OF-WAY EXPERIENCE

Appraisal experience involving full and partial acquisitions, road widenings, permanent and temporary easements, overcrossings, undercrossings, power lines and High-Speed-Rail corridor.

EXPERT WITNESS

Qualified as an expert witness in Madera County and San Joaquin County.

PARTIAL LIST OF CLIENTS

Cities and Government & Administrative Agencies: Hanford, Lindsay, Coalinga, Porterville, Avenal, Tulare, Corcoran, Fresno, Fresno County, Tulare County, Kings County, USDA, SBA, Kings Area Rural Transit, United States Navy

Attorneys: Dias Law Firm, Inc.; Kahn, Soares & Conway, LLP.; Law Offices of Mark A. Wasser; Griswold, LaSalle, Cobb, Dowd & Gin, LLP; Chielpegian Cobb; Ruddell Cochran Stanton Smith & Bixler, LLP; McCormick Barstow, LLP; Hatherley Law; Lerandeau & Lerandeau Divorce Attorneys, Motschiedler, Michaelides, Wishon, Brewer & Ryan, LLP; Fennemore Dowling Aaron, Wild Carter & Tipton, Wanger Jones Helsley PC, Murphy & Evertz, California Eminent Domain Law Group.

Lenders: Bank of the Sierra; Bank of the West; Westamerica Bank; Central Valley Community Bank; Valley Republic Bank; Tri Counties Bank; Rabobank; Wells Fargo Bank; Comerica Bank; Agribusiness Financial Inc.; First Bank; Murphy Bank; Zions Bank; AgFi; Citizens Business Bank; Mechanics Bank; Farm Credit West; Madera Farm Credit; Heartland Financial; PACT Capital; UMB; Nebraska State Bank

Healthcare: Adventist Health, Tulare Local Healthcare District, Corcoran District Hospital, Family HealthCare Network, Sierra View District Hospital, and Lindsay Local Hospital District.

Qualifications of Ross E. Lenz, MAI
[email protected]
www.jhower.com

STATE OF CALIFORNIA CERTIFICATION
California Certified General Real Estate Appraiser #043508

PROFESSIONAL AFFILIATIONS
The Appraisal Institute - designated member

APPRAISAL EXPERIENCE
J. Hower & Associates, Inc. Hanford, CA April 2026 – Present, Affiliate Appraiser Hopper Company, Visalia, CA June 2006 – April 2026, Real Estate Appraiser

EDUCATION

California State University, Fresno
Bachelor of Science, Business Administration - Entrepreneurship– 2006

Appraisal Institute
Numerous courses including all prerequisites to attain the MAI designation.

International Right of Way Association
Appraisal of Partial Acquisitions

TYPES OF PROPERTIES APPRAISED

Commercial Properties
Office, medical, industrial, apartments, retail, subdivisions, vacant land, special purpose.

Agricultural
Nut crops, stone fruit, citrus, irrigated field crops, rangeland, vineyards.

RIGHT-OF-WAY EXPERIENCE

Appraisal experience involving full and partial acquisitions, road widenings, permanent and temporary easements, power lines and rail corridor.

PARTIAL LIST OF CLIENTS

Cities and Government & Administrative Agencies: Visalia, Tulare, Porterville, Woodlake, Lindsay, Dinuba, Tulare County, U.S. Postal Service, Visalia Unified, Exeter Public Schools, Tulare Joint Union School District, College of the Sequoias, San Joaquin Valley College, and Carrington College.

Corporations: Southern California Edison Company, Nationwide Mutual Insurance Company, Lyles Diversified, Mid Valley Disposal, OSAT Inc., Owens Valley Career Development Center, Self-Help Enterprises, California Water Service Co., Visalia Senior Housing, Young’s Commercial Transfer.

Attorneys: Peltzer & Richardson, Herr Pedersen & Berglund, Betts & Wright, Reynolds Jensen & Swan, Preston Law Office, Gromis & Aguirre, McCormick Kabot Jenner & Lew, Sullivan McGregor & Doerr, and Lozano Smith.

Lenders: Bank of the Sierra, Central Valley Community Bank, Mission Bank, Bank of the West, Tri Counties Bank, Citizens Business Bank, Wells Fargo Bank, Comerica Bank, AgWest Farm Credit, Heritage Bank of Commerce, Central State Bank, Pacific Alliance Bank, Valley Republic Bank, Fresno First Bank, United Midwest Savings Bank, Pinnacle Capital, Bank of Stockton

Healthcare: Kaweah Health, Tulare Regional Medical Center, Sierra View Local Health Care District, Family HealthCare Network, Tulare Community Health Clinic, Visalia Medical Clinic Churches: Baptist, Praise Center, Calvary Chapel, New Hope, Nazarene, Grace Community, Living Christ, Radiant, Living Word Fellowship, Landmark Christian Center, Abounding Grace.

Right-of-Way Firms: Universal Field Services, Hamner Jewell & Associates, Overland Pacific & Cutler.

Other: Visalia Rescue Mission, International Agri-Center, YMCA, Exeter Masonic Temple Association, Valley Oak SPCA.

END OF REPORT
Item #: 8.1
General Business
Staff Report
City Council
Date: September 1, 2026
Department: Engineering Services - Engineering
Submitted by: Michael Winton, Deputy City Engineer
Agenda Title: Presentation on the Pavement Management System Update

RECOMMENDED ACTION
Receive a presentation from Infrastructure Management Services (IMS) on the preliminary results of the Citywide Pavement Management System Update.

ALIGNMENT WITH STRATEGIC PRIORITIES
Infrastructure and Transportation

SUMMARY
In September 2025, the City Council authorized a contract with IMS to update the City’s Pavement Management System (PMS), which provides a systematic approach for evaluating pavement conditions, identifying maintenance and rehabilitation needs, and assisting the City with long-term roadway investment planning.

The consultant will provide the City Council with a presentation on the preliminary results of the pavement management system update, including an overview of current pavement conditions, identified maintenance and rehabilitation needs, projected funding requirements, and potential strategies for maintaining the City’s roadway network. The presentation will also provide an opportunity for the City Council to review the preliminary findings and provide direction or comments as the update is finalized.

No action is requested at this time. The presentation is intended to provide the City Council with an overview of the preliminary findings and assist staff in establishing future pavement maintenance and rehabilitation priorities.

FISCAL IMPACT & FUNDING SOURCES
There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. No Action on this item is required.

ATTACHMENTS
None
Reviewed/Approved: TG
Item#: 9.1
Future Agenda Items

COUNCIL ITEM REQUEST FORM
City of Tulare
Agri-Center of the World
The Council Item Request Form is for members of the City Council to submit written requests to the City Clerk's Office for inclusion of an item on a future City Council meeting agenda. At the meeting where the initial written request is heard, discussion shall be limited to whether the item should be added to an agenda and a date, not the merit of the item. A majority vote of the City Council is required for the item to be added to a future Council meeting agenda for action. No more than 10 items may be submitted collectively for consideration by all council members at any regular meeting of the Council, and in that regard, no individual councilmember may submit more than three items for consideration at any regular meeting of the Council. In the event more than 10 items are submitted collectively, no more than two items shall be accepted for consideration from any one councilmember.

NAME OF REQUESTING COUNCILMEMBER

JOSE SIGALA

ITEM TITLE

TODA Y'S DATE
August25,2026

AGENDA DATE
September 1 , 2026
Title: Establish a 90-Day Moratorium on the Issuance and Processing of Data Center Building Permits in the City of Tulare

BRIEF DESCRIPTION/BACKGROUND INFORMATION OF ITEM
Mr. Mayor and Council,
I would like to ask for your support in placing on our September 15th meeting agenda the following item for discussion and possible action:
•□That the Council directs the City Manager and appropriate staff to establish a 90-day moratorium on the issuance and/or processing of any building permits for the construction of data centers within the City of Tulare limits. That staff also take this opportunity to organize a study session at the end of the 90-day moratorium that will provide Council with information on the pros and cons of data centers, the impacts and/or benefits they may have on the community as well as providing an explanation on the process of having them approved by the city.

There has been great interest from many of our constituents on the topic of data centers and a lot of noncredible information being disseminated that I feel it is reasonable to ask for the 90-day moratorium and study session as noted above.

The time will allow for staff to continue to research the topic as noted in previous council meetings.

I would hope that the research provides the Council with the process by which a permit would be issued and the role the council may or may not have in the process.

I feel the timing is right for the City Council to join other jurisdictions in requesting this moratorium.

Thank you for your consideration of this request.

JOSE SIGALA
City of Tulare Council Member, First District