80A - JOINT PH - TRANSIT ZONING CODE, FINAL EIR, SPECIFIC PLAN ETC. - ORIGINAL PACKET PROVIDED TO COUNCIL

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ESTIMATED VALISE of THE INTERESTS ESTS To BE CONVEYED ED o LEASED DETERMINED AT THE HIGHEST AND BEST USES PERMITTED BY THE REDEVELOPMENT fT PLAN Section 33433 requires the Agency to Identify the Value of the Interests being conveyed at the highest and best uses alloyed by the Redevelopment Plan. The Valuation must also be based on the requirements imposed by the Site's zoning, and the assumption that near -tern development is required. The Valuation does not take into consideration any extraordinary use, quality and/or Income restrictions being imposed on the development by the Agency. The Agency recently acquired six Vacant parcels within the Site. The purchase price for these parcels was determined based on highest and best use appraisals. The weighted average Value for these parcels totaled $25 per square foot of land area. When this is applied to the 6.52-acre Site, the total value at the highest use permitted by the Redevelopment Plan is estimated at $7.1 million. This Value will increase commensurately if any of the Additional Properties are ultimately acquired and Included in the scope of development. IV. ESTIMATED REUSE VALUE of THE INTERESTS TO BE CONVEYED The fair reuse Value is defined as the Value of the interests to be conveyed, based on the specific terms and conditions imposed by the Agreement. Keyser Marston Associates, Inc. (KMA), the Agency's financial consultant, prepared a reuse valuation analysis of the Project based on the currently proposed scope of development. This analysis concluded that the fair reuse value of the Site is negative $17.25 million. This means that the Site would have to be donated In a developable state at no cost to the Project} and that $17.25 million in direct financial assistance would have to be provided, to make the Project financially feasible. K A also prepared an analysis of the reuse Value that would be supported if the Additional Properties are included in the development. Under this scenario the fair reuse Value is estimated at negative $17.79 million. V. CONSIDERATION DECEIVED AND COMPARISON WITH THE ESTABLISHED VALUE The Agreement imposes extraordinary controls on the Project. Specifically, the Developer must accept long -tern income and affordability covenants on 116 of the 144 units in the Project. The impacts created by these requirements reduce the Site's Value from $7.1 million at the highest use permitted under the Redevelopment Plan, to the established fair reuse Value of negative $17.25 million. The compensation to be received by the Agency can be described as follows: 10 10GW1 . - HH: a I s(M.001 .as7