80A - TRANSIT CODE AND STATION DISTRICT - EXHIBIT K

Home Browse Search

III, ESTIMATED VALUE DF THE INTERESTS T~ ~E CONVEYED ~R t,EAED DETERMINED AT THE RICHEST AND BEST USES PERMITTED BY THE REDEVELOPMENT PLAh~ Section 33433 requires the Agency to identify the value of the interests being conveyed at the highest and best uses allo~red by the Redevelopment Plan The valuation must also be based an the requirements impaled by the Site's zoning, and the assumption that near~term development i required, The valuation does not take into consideration any extraordinary use, qualify and~or income restrictions being imposed on the development by the Agency. The Agency recently acquired six vacant parcels ~vifhin the Site, The purchase price for these parcels vas determined based on highest and best use appraisals, The Freighted average value far these parcels totaled ~ per square foot of land area. ~JUhen Phis is applied to the .52~acre Site, the total value at the highest use permitted by the Redevelopment Plan is estimated at 7,~ million, This value Frill 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 unposed by the Agreer~ent. Keyser Marston Associates, lnc, ~KMA~, the Agency's financial consultant, prepared a reuse valuation analysis ofthe Project based on the currently proposed scope of development, This analysis concluded that the fair reuse value of the Site is negative X7,25 million, This means that the Site Frauld have to be donated in a developable state at no cost to the Project, and that ~ 7,25 million indirect financial assistance Frauld have to be provided, to make the Project financially feasible, I~CMA also prepared an analysis of the reuse value that Frould be supported if the Additional Properties are included in the development finder this scenario the fair reuse value is estimated at negative ~ x,79 million. V. CONSIDERATION RECEIVED AND COMPARISON 111TH THE ESTABLISHED VALUE The Agreement imposes extraordinary controls an the Project. Specifcally, the Developer must accept long-term income and affordability covenants on 'i ~ ~ of the ~ 44 units in the Project, The impacts created by these requirements reduce the Site's value from 7,~ n~iilian at the highest use permitted under the Redevelopment Plana to the established fair reuse value of negative 7,25 million. The orr~pensation to be received by the Agency can be described as falla~rs; tao~a~~.s~~~~~:a ~.~~.~7 1