75N - PH - RESO NECESSITY 2120-2130 S BRISTOL

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SUMMARY OF THE BASIS FOR JUST COMPENSATION The purpose of the appraisal study is to express an estimate of total just compensation applicable to the proposed partial acquisition of the subject parent property. Just compensation is based on a quantitative measure of market value. Market value is defined in The California Code of Civil Procedure, §1263.320, as: %A) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but sander no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (B) The fair market value of pr'oper'ty taken for which there is no relevant market is its value on the date of valuation as determined by any method of valuation that is just and equitable. " Additionally, Section 1263.330 provides that the fair market value shall not include an increase or decrease in value attributable to the project for which the property is to be acquired. Accordingly, the subject property has been appraised absent any influence of the proposed freeway interchange improvement project. There are three conventional methods (approaches) which can be utilized to estimate value. They are the Sales Comparison Approach, Cost -Summation Approach, and Income Capitalization Approach, The Sales Comparison Approach has been employed herein to estimate the value of the subject underlying land parcel which will be utilized in the valuation of the proposed acquisition, The Sales Comparison Approach has been employed herein to estimate the value of the subject underlying land parcel which will be utilized in the valuation of the proposed acquisition, The Income Capitalization Approach have been applied to the relevant portion of the larger parent property for the purpose of facilitating estimation of severance damages relating to the loss of two automobile parking spaces. Certain elements of the Cost -Summation Approach have been employed herein for the purpose of estimating costs associated with reconstructing the outdoor patio seating area. Value of Parent Property Before Acquisition: Sales Comparison Approach, The Sales Comparison Approach takes into account properties which have sold in the open market. This approach, whether applied to vacant or improved property, is based on the Principle of Substitution which states, "The maximum value of a property tends to be set by the cost of acquiring an equally desirable substitute property, assuming no costly delay is encountered in making the substitution. " Thus, Ute Sales Comparison Approach attempts to equate the subject property with sale properties by analyzing and weighing the various elements of comparability. 75N-18