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EXHIBIT 3 \\ , Valbridge Public Pay Parking Lot LAND VALUATION ...._ PROPERTY ADVISORS Discussion and Analysis of Land Sales Adjustments for property interests, favorable financing and sales conditions were not warranted. As there is very limited supply, vacancy has been on the decline, rental rates have increased, and property values have been increasing over the past few years. Thus, we have made upward adjustments to the comparable properties at rate of 4% per year from the date the property sold to the date of value for the subject property in order to account for these changes in market conditions (time). Across the board adjustments were necessary to reflect the fact that the subject is located on a minor traffic street, has a zoning that is primarily oriented towards office and has limited development potential due to its smaller size. Land Comp No.1 Land comp no. 1 is located west of the subject, at 520 S. Harbor Blvd., in the city of Santa Ana. The property is located in a small retail area with some sales car lots surrounding the site on an interior lot fronting a major traffic street. The sale price for this property was $5,200,000 which equates to $52.36 per square foot. This property is located in the western area of Santa Ana with similar demographics. The site has visibility to a major traffic street. The site is rectangular in shape, but is narrow in shape with limited street frontage. The front of the site is asphalt paved and was used as a car sales lot. The rear of the site is vacant land. An upward adjustment was needed for the property's larger size. Downward adjustments were made for superior visibility/exposure on a busier street and superior zoning. An additional downward adjustment has been for the subject's small site size and narrow shape, which limits the potential land uses/development of the site. Overall, this comparable was considered superior to the subject. After adjustments, this sale provides an indication of land value for the subject at $36.85 per square foot. Land Comp No.2 Land comp no. 2 is located east of the subject, at NEC 1st St & Grand Ave., in the city of Santa Ana. Bath streets are moderate traffic streets and this comparable is located in a similar area of Santa Ana as the subject. This location is approximately 1/2 mile to the west of the Santa Ana (5) Freeway. The sale price for this property was $1,975,000, which equates to $58.05 per square foot. The property is situated at the immediate corner of a signalized intersection in a somewhat secondary area of older commercial and residential development. This area is similar in demographics to the subject. While it has corner exposure it also wraps around an adjacent property to the east. Thus, the shape of the site is irregular. It sold to a motivated buyer from the immediate area who was attempting to expand church operations. At the time of sale, the property had some old paving and was formerly occupied with a used car business. Considering the buyer motivation, a downward adjustment has been made for "sale conditions." Upward adjustments are necessary for larger size of the site, irregular shape, and site condition (demolition cost). Downward adjustments are warranted for superior access/orientation, superior visibility/exposure on a busier street, and superior zoning. An additional downward adjustment has been for the subject's small site size and narrow shape, which limits the potential land uses/development of the site. Overall, this comparable was considered superior to the subject. After adjustments, this sale provides an indication of land value for the subject at $36.78 per square foot. Land Comp No.3 Land comp no. 3 is located north of the subject, at 14337 Imperial Hwy, in the city of La Mirada (uninc). This property is just east of Valley View Avenue. It has an interior orientation and fronts a well -traveled artery in a secondary commercial area of old retail, single-family residences, and © 2015 VALBRIDGE PROPERTY ADVISORS I Penner and Associates, Inc. Page 37 SA4-69