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AgreementS for Goodwill <br />Appraisal Services <br />July 3, 2006 <br />Page 2 <br />DISCUSSION <br />The Redevelopment Agency has an obligation to increase, improve and <br />preserve affordable housing within the City of Santa Ana. Under <br />California law, the Agency is required to replace affordable housing <br />units that are removed from the City's housing stock as a consequence of <br />its activities. Additionally, it is required to ensure that at least <br />fifteen percent of new and substantially rehabilitated housing units <br />developed within Redevelopment project areas are affordable to low- and <br />moderate- income households. As part of its efforts to meet these <br />obligations, the Agency engages in many kinds of real estate activities. <br />On occasion, these activities may include the acquisition of commercial <br />properties. Under California law, owners of such properties are entitled <br />to compensation for any loss of customer goodwill that they may <br />experience. <br />As a consequence, the Agency requires the services of qualified <br />consultants to prepare goodwill appraisals for its acquisitions of <br />commercial properties. Recently, the Public Works Agency requested <br />proposals from qualified firms for such appraisals and ranked the <br />respondents on the basis of qualifications, past experience, and capacity <br />to perform the required tasks. The successful proposals were submitted <br />by Donna Desmond Associates and Sanli Pastor & Hill. Staff is <br />recommending that the Agency enter into an agreement with each firm for <br />an amount not to exceed $100,000. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />Funds for these contracts are available in the Tax Increment Housing Set - <br />Aside account (account #507- 508 -6291) and the Tax Increment Merged <br />Redevelopment Project Area account (account #570 - 933 - 6291). <br />taVtep en G. Harding <br />Executive irector <br />Community Redevelopment Agency <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez <br />Executive Director <br />Finance & Management Services Agency <br />SGH /TG /mlr <br />H: \ACTIONS \2006 CRA\ AgreesGoodwillAppraisalServices 7- 3- 06.doc <br />5 -6 <br />