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

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SUMMARY OF THE BASIS FOR NST COMPENSATION (Continued) Curable Damages: (Continued) A compensation allowance has been included herein based on the replacement cost estimates applicable to retrofitting. Said estimates are based on development projects wherein actual costs for a like improvement were available for review. Further, a national cost service has also been consulted as a secondary check. The compensation amount below includes labor/material costs, as well as entrepreneurial profit and indirect costs such as management and supervision. Concrete paving: Reconstruct wrought iron fencing $ 1,127. 37 LF @ $157.50 = 5,828. Landscape area: 650 SF @ $ 6.56 = 4,264. Irrigation system: 650 SF @ $ 1.31 = 852. Rework on-site improvements: 500 SF @ $ 5.25 = 2,625. Total mitigation costs: $14,696. Value of Remainder, Cured, After Acquisition: In the "after" condition, the land area of the parent ownership will be 454,944 square feet. The main buildings and a majority of the on-site improvements will not be physically impacted by the partial acquisition. Other property features such as drainage, present use, configuration, highest and best use, along with overall building condition remain unchanged. The most significant impact to the parent property is relocation of the Panda Express outdoor seating area which, in -turn, results in the permanent loss of two automobile parking spaces adjacent to the three -unit commercial retail building. It is anticipated that a reduction in the monthly rental rates of the three adjacent retail units will be required due to the loss of "premium" automobile parking spaces. Upon completion of the mitigation measures, it is judged that the property will fimction in a generally similar fashion as in the "before" condition, albeit at a lower monthly income stream. Other property features such as drainage, present use, vehicular accessibility, configuration, highest and best use, along with overall building condition remain unchanged. The value of the remaining portion of the subject parent property, as cured, after acquisition, before consideration of permanent severance damages and project benefits, is estimated by application of the Income Capitalization Approach in a similar fashion as in the "before" condition analysis. The Income Capitalization Approach is based on the same leasable building area as employed in the previous "before" analysis. As noted, the development will lose two automobile parking spaces as a result of the street improvement project. It is anticipated that the fair market rental rates will be reduced by approximately 2% (compared to before condition analysis) due to the reduced parking capacity and resultant inconvenience to tenants/patrons. The vacancy/credit loss factor and overall capitalization rate remain unchanged from the "before" condition analysis. 75N-24