ELLIS GROUP, INC. DBA INTEGRA REALTY RESOURCES, LOS ANGELES

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Fee Proposal for RFP No. 18-082 for On -Call Right of Way Property Appraisal ServIces 1 1224 East Warner Avenue (Cherry Aerospace Part Take) This represents an improved industrial property with frontage on East Warner Avenue. For purposes of this cost proposal, we understand that the City wishes to acquire the fee simple interest in a 10-foot strip of land, measured from the back of the sidewalk (side closest) to the building. There is no mention of a temporary construction easement, which would likely be required so that a new driveway could be poured to access the property in the after condition. Ideally, this would be discussed prior to providing a fee quote. For purposes of this quote, we are assuming that the City will provide a now driveway as a result of the Project. Further, based on our research, the subject larger parcel consists of only APN 016-150-09. Once the assignment is awarded to us, we would request a copy of the notice of decision to appraise, that the City sent (sends) to the property owner so that we could send out an owner notification letter and Invite the property owner to be present at the time of our Inspection. This letter would be sent via regular mail and by certified mail (return receipt requested). We would meet with the property owner to understand any concerns they have relative to the acquisition Impacting their property and to answer any questions they may have relative to the appraisal process. At the time of inspection; we would measure any impacted site improvements and make note of any mitigation or cost -to -cure measures that may be required. Based on the information available to us at this time, this is a relatively simple strip take, and we do not foresee any permanent damages to the subject. As such, we propose to appraise the larger parcel as land only, based on its highest and best use as vacant. This would involve a sales comparison approach only. The concluded unit value for the land associated with the larger parcel would be applied to the area of the acquisition to result in a value for the land associated with the fee take. Please note that per California Eminent Domain Law, project influence is not considered in valuing the subject in the before condition. Next we would value the site Improvements in the acquisition area. Based on aerial photographs, the impacted site improvements include paving, brick planter walls, grass and shrubs (bushes), large mature trees, irrigation, and a building monument sign. Also visible from photographs are water valves and aboveground meters (possibly hydrants) that may be part of the building's fire suppression system. Also noted is a utility installment adjacent to the "Cherry Aerospace" monument sign. The valuation of the site Improvements would include consideration of the following: • We would meet with the Project manager to determine which, if any, of the Improvements will be replaced by the project, such as movement of utilities. Those Items that will be covered as part of the Project will be mentioned in our appraisal; however, value will not be awarded to those items. • Items that will be removed, but do not require replacing in the after condition (such as asphalt in the take area), are costed based on their depreciated replacement cost. Landscaping items, while they may not be replaced, are not depreciated (trees, grass, shrubs, etc.). The value of the land associated with the strip take, added to the depreciated (when appropriate) value of the site improvements is equal to the value of the parts acquired. Because we have determined that there are no permanent damages to the subject, the value of the remainder as part of the whole is equal to the value of the remainder in the after condition before consideration of benefits. Next we would discuss benefits, if any, that can be quantified. Under California law, benefits can only be used to offset damages, which are unlikely in this case, frn