Item 37 - Bristol Street and Memory Lane Intersection Improvements

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ATTACHMENT 3 Value of the Remainder in the After Condition After Considering Benefits Briefly stated, benefits are defined as any value enhancement resulting from the project. As cited in Los Angeles County Metropolitan Transit Agency v. Continental Development Corporation, 97 Daily Journal D.A.R. 11021, "...all reasonably certain, non -speculative benefits resulting from the project may offset against severance damages..." Although the community in general may benefit from the proposed project, we have found no evidence of benefits accruing to the Remainder in the "After" condition. The construction of the project in the manner proposed may bring benefits to the area in the form of traffic allowance and safety, and, hence, value enhancement; however, at this time, such benefits are not quantifiable. The value of the remainder in the after condition after considering benefits is not changed from the value of the remainder in the after condition before considering benefits; thus, no benefits are shown, as follows: Benefits Remainder in the After Condition After Considering Benefits $17,876,391 Remainder in the After Condition Before Considering Benefits $17,876,391 Benefits $0 Fair Market Value of Temporary Construction Easement A temporary construction easement is proposed to allow for the construction of the project as proposed. A review of the proposed agreement to assess the degree of encumbrance on the property was completed to ascertain which rights the fee owner retains. The impact on value may be a function of the loss of utility, access and use rights to be transferred and the obligations of the parties during the construction period. The TCE is intended to allow the contractor onto the site to complete construction -related activities. The presence of the proposed TCE appears to restrict the normal use of the area by the owner and a ground rent equivalent to 100% of the market ground rental rate is indicated. A temporary construction easement (TCE) reflects a transaction equivalent to a rental of the land for the period of construction. It can be evaluated based on negotiated land rental transactions, or (in the absence of directly relevant market transactions) a rate of return may be applied to the value of the underlying land. In this appraisal, we have relied on the latter. The value of the subject land encumbered by the TCE is expressed as the value per square foot based on the unit value of the larger parcel. As previously discussed, it is our opinion that the fee value of the subject land is at a unit rate of $70.00 per square foot. An application of the appropriate value per square foot is applied to the concluded rate of return for the land area affected by the temporary construction easement. For the area affected by the TCE, the indicated fee value of the land rental component is calculated in the following table. Temporary Construction Easement (Land Rental Component) Assesor's Parcel Land Value TCE Land Annual Rate of Annual Duration Indicated Number Area ($/SF) Value Return TCE Value (Years) Value 002-261-29 948 $70 $66,360 10% $6,636 1 $6,636 Site Improvements within the TCE area Page 10