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20D - AA VACANT LAND PURCHASE
REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 16, 2018 TITLE: APPROVE PURCHASE AGREEMENT OF VACANT LAND FOR FUTURE WATER WELL FACILITY (NONGENERAL FUND) (STRATEGIC PLAN NO. 6, 1) r - J CIkJ MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1B1 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize the City Manager and Clerk of the Council to execute a purchase agreement for the real property located at 651-657 E. Washington Avenue (APNs 398-150-02 and 398-152-16), and goodwill, if any, with Pacific Legacy Real Estate & Investments, Inc., in an amount of $1,083,750, subject to nonsubstantive changes approved by the City Manager and City Attorney. 2. Approve an Appropriation Adjustment recognizing $1,083,750 from prior year fund balance in the Water Utility revenue account, and appropriating the same into the Water Utility Capital Projects expenditure account. DISCUSSION The City of Santa Ana Public Works Agency manages the Water Enterprise which is charged with satisfying the water demands of the City's 340,000 -plus residents and businesses. On average, the City provides about 31 million gallons of high quality potable water per day. The Water Enterprise meets the water demands of the community primarily from two sources: imported surface water and local groundwater. The majority of water supplied to the community (about 75 percent) comes from local groundwater sources, which is less costly than the imported surface water sources. To accomplish this, the City's Water Enterprise owns and operates 21 active groundwater wells. In an effort to plan for the continued efficiency and operability of the City's water systems and supplies for future generations, the Public Works Agency has conducted and completed various studies, including a Water System Master Plan, an Urban Water Management Plan, and a computerized water system model. These studies allow the Public Works Agency to responsibly plan for the future needs of the community and to plan water system infrastructure improvements necessary to meet those needs. One of the primary needs identified is the replacement of older ground water wells with new ones to retain groundwater source reliability. 20D-1 Purchase Agreement for Vacant Land for Future Water Well Facility January 16, 2018 Page 2 Property acquisitions are necessary to accommodate future water system groundwater wells. Public Works Agency staff has identified ideal areas for future groundwater wells based on water system hydraulic analyses. The ideal area for the City's next groundwater well is in the vicinity of the existing elevated tank (water tower) near Interstate 5, and staff has identified a vacant lot (Exhibit 1) that is suitable for this purpose. A purchase offer was made based on the appraised value prepared by a State licensed appraiser (Exhibit 2), and the offer was accepted by the property owner. The purchase price for the acquisition is $1,083,750, and is shown in the corresponding agreement (Exhibit 3). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action FISCAL IMPACT The appropriation adjustment will recognize and appropriate $1,083,750 of prior year fund balance in the Water Utility revenue account and facilitate an interfund budgetary expenditure transfer as follows: Account Number Description RevenueFExense 06017002-50001 Water Utilit Prior Year Fund Balance $1,083,75006017019-68000-66 Water Utilit Interfund Transfer 83,750 06617002-59000-60 Water Capital Projects Interiund Transfer $1,083,7506617647-66100 Water Utilit Capital Projects Land 83,750 Funds will be available for expenditure in Fiscal Year 2017-18. Exdcutive Director Public Works Agency FM/NS/RR APPROVED A$ TO FUNDS & ACCOUNTS: L Executive Dirbstbr �� Finance & Management Services Agency Exhibits: 1. Location Map 2. Appraisal 3. Agreement for APN 398-150-02 & 398-152-16 20D-2 L IL. L V'J'-Orange �d MornsanfA Park I I LI li LiIL Li Liti T D DOE E Subject ectg 1LProperty u u 1-i Ld rz;� ILiiLL E Santa Clara Ave pnnol Park�l 119- 0 z �1 9 h, t 0 c_— 1 5tW 1711) �t tb Z r i6mI# I w 5th S 2b ILL] E U) E WrosihINto Q U ETR(I N b O -P 17-3 d 2% nta An' t: 01 741 l—;- =nla-AAa Ok'46�W 41hl GA1E 4th StI W3rd St E 3rd St E- 1st Si U E nainuut St i Tj E u' E G [sho.1 i Myrfie I E ji 17 0 F. p--su �-4 Ave—'dc- ri WNINWRI Ana mi Park � 111-1 RR 20D-4 SUBJECT PROPERTY Washington Avenue and Penn Way, within the City of Santa Ana. See additional photographs in the Addenda Section. APPARENT VESTEE: Pacific Legacy Real Estate & Investments, Inc. Mailing Addram 17855 Santiago Blvd., #107-484 Villa Park, California `2881 Telephone. c/o Sam glaon ( 7 1 4) 785-5544 PROPERTY ADDRESS; 651-657 East Washington Avenue Santa Ana, California LEGAL DESCRIPTION: Portion of Block 12, Santa Ana East, per map recorded in Book 1, Page 93 of Maps, and a portion of Section 7, Township 5 South, Flange 9 West, San Bernardino Baseline and Meridian. A complete metes and bounds legal description was not provided for review. EXHIBIT�OD-5 4110M i —o—y SANTIAGO AWME '4 POINSETTIA ST. Q fsN o� m I -A EXHIBIT20D-7 4 .A y iV{ tf� L STREET a Kilo APPRAISAL REPORT Prepared for CITY OF SANTA ANA 20 Civic Center Plaza Santa Ana, California 92702 Date of Report October 13, 2017 MARKET VALUE STUDY VACANT RESIDENTIAL LAND PARCEL PROPOSED WATER WELL SITE 661-657 EAST WASHINGTON AVENUE SANTA ANA, CALIFORNIA Effective Date of Appraisal October 9, 2017 Prepared by Scott A. Lidgard, MAI, CCiM LIDGARD AND ASSOCIATES, INC. 2592 North Santiago Boulevard Orange, California 92867-1862 Report Reference No, 8084 LIDGARD AND ASSOCIATES AP PRA IS P. RS -CONS ULTA.NTS EXHIBIT 2 20D-9 October 13, 2017 City of Santa Ana 20 Civic Center Plaza Santa Ana, California 92702 Attention: Jason Gabriel Principal Civil Engineer Subject: Market Value Study Vacant Residential Land Parcel Proposed Water Well Site 651-657 East Washington Avenue Santa Ana, California 2592 North Santiago Bou QI)ard Orange, California 928674862 (714) 633.8441 or (562) 988.29\26 scott@lidgardinc.com In accordance with your request and authorization, I have completed an appraise study of the above -referenced property on behalf of the client indicated above. The valuation study consisted of (1) an inspection of the subject property from the adjacent rights-of-way, (2) a review of public records particularly with respect to the underlying zone and general plan land use designations, (3) the research and collection of comparable market data in the immediate and general subject market area, (4) a valuation employing the Sales Comparison Approach based on an analysis of the comparable market data, and (5) preparation of this formal narrative appraisal report in summation of the activities outlined above. The subject property consists of a vacant land parcel located at the northwest corner of Washington Avenue and Penn Way, within the City of Santa Ana. The site has a nonsignalized corner location, irregular land configuration, effectively level topography, and contains 26,598 square feet of land area, per Assessor's records. The parcel is zoned UN -2 (urban neighborhood). The property is identified by the Orange County Assessor's office as Assessor's Parcel Nos. 398- 150-02 and 398-152-16. The property owners are nearing the end of the entitlement process for a 7 -Knit townhouse development on the subject property. The proposed unit mix includes five 2-bedroom/3-bathroom dwelling units and two 3-bedroom/3-bathroom units ranging in size from 883 to 1,296 square feet of living area. The development will consist of a 6,987 square foot building footprint with a 53% lot coverage,ratio and a density of one unit per 3,800 square feet of land area. Each unit will have a two- LIDGARD AND ASSOCIATES INCORPORATED 20DstateAppraisal and Consultation City of Santa Ana Attention: Jason Gabriel Principal Civil Engineer October 13, 2017 Page 2 car garage and private balcony. There will be two on-site guestparking spaces. Reference the accompanying appraisal report for a complete description of the subject property and valuation analysis process. The purpose of this appraisal study is to express an estimate of market value of the unencumbered fee simple interest in the subject property based on the hypothetical condition that the site is fully entitled for the development of a 7 -unit residential townhouse complex as proposed. A hypothetical condition is defined in The Dictionary of Real Estate Appraisal, Sixth Edition, Page 113, published by The Appraisal Institute, as, "A condition, directly related to a specific assignment, which is contrary to what is known by the' appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property- or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis." In the event conditions relating to the use of the hypothetical condition do not materialize, assignment results set forth herein might be affected. Fair 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 under 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 property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable." The intended use of this appraisal report is to assist the City of Santa Ana in purchase negotiations with the private property owner. Intended users are City officials, along with consultants thereof, for the explicit purpose and intent indicated above. This report is not intended to be distributed to, or relied upon by, third parties. LIDGARD AND ASSOCIATES n O D$ �F"� INCORPORATED L state Appraisal and Consultation City of Santa And-- -Attention: na_-Attention: Jason Gabriel Principal Civil Engineer October 13, 2017 Page 3 After considering the various factors which influence value, the market value of the subject property, as of October 9, 2017, is as follows: ONE MILLION SIXTY-FIVE THOUSAND DOLLARS \ $1,065,000. This appraisal complies with the reporting requirements set forth in the Uniform Standards of Professional Appraisal Practice, under Standard Rule 2-2(a). This report contains a moderate level of detail with respect to the market data, appraisal methodology, and reasoning supporting the analysis, opinions, and conclusions. It contains sufficient information for the purpose, intent, client and users for which it is written. This appraisal report is submitted in triplicate; we have retained a file copy. Please do not hesitate to contact the undersigned in the event you require additional information from our file. Very truly yours, ASSOCIA Seatl-A. Lidgard,(MAI, CCIM Certified General Real Estate Appraiser California Certification No, AG 004014 Renewal Date: March 13, 2018 SAL:sp i LIDGAB.D AND ASSOCIATESEstate Appraisal ¢(id Consultation INCORPORATED 2O D` 1gy TABLE OF CONTENTS Title Page Letter of Transmittal Table of Contents PREFACE Executive Summary Location Map Date of Value Purpose of the Appraisal Intent and Users of the Appraisal Property Rights Appraised Appraiser's Certification Scope of the Appraisal Assumptions and Limiting Conditions Terms and Definitions SUBJECT PROPERTY DESCRIPTION Apparent Vestee Property Address Legal Description Plat Map Site Description Existing Improvements Assessment Data Ownership History Neighborhood Environment VALUATION ANALYSIS Highest and Best Use Analysis Valuation Methods Sales Comparison Approach Final Estimate of Market Value Exposure Time MARKET DATA Summary of Residential Land Value Indicators Market Data Location Map Residential Land Sales Data and Photographs LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 20D-13 20D-14 EXECUTIVE OLIMMARY PURPOSE OF APPRAISAL: Market value of the unencumbered fee simple interest in the subject property based on its the hypothetical condition that the site is fully entitle for the development of a 7 -unit residential townhouse complex as proposed. CLIENT IDENTIFICATION: City of Santa Ana PROPERTY ADDRESS: N651-657 East Washington Avenue Santa Ana, California APPARENT VESTEE: Pacific Legacy Real Estate & Investments, Inc. SITE DESCRIPTION: Land area: 26,598± square feet, per architectural plans/ - specifications prepared by Habitat for Humanity dated December 29, 2016. Land shape: Irregular land configuration. Zoning: UN -2 (urban neighborhood). Soil contamination: None known or observed by appraiser, howev- er, a comprehensive soil study was not provid- ed for review. The subject property has been appraised herein as though free of soil contam- inants, if any. Present use: Vacant land lot Highest and best use: Residential development. Assessor's No.: 398-150-02 & 398-152-16 EXISTING IMPROVEMENTS: There are no building or other on-site im- provements located within the boundaries of the subject property which contribute signifi- cant monetary value in a highest and best use context. DEVELOPMENT PLANS: The property owners are nearing the end of the entitlement process for a 7 -unit townhouse de- velopment on the subject property. The pro- posed unit mix includes five 2-bedroom/3- bathroom dwelling units and two 3-bedroom/3- bathroom units ranging in size from 883 to LIDGARD AND ASSOCIATES APP RA IS RMS -CON S U LTAN'rS 1 20D-15 EXECUTIVE SUMMARY (Continued) DEVELOPMENT PLANS: (Continued) 1,296 square feet of living area. The develop- ment will consist of a 6,987 square foot building footprint with a 53% lot coverage ratio and a density of one unit per 3,800 square feet of land area. Each unit will have a two -car garage and private balcony. There will be two on-site guest parking spaces. DATE OF VALUE: DATE OF REPORT: VALUATION ANALYSIS: Sales Comparison Approach: Cost -Summation Approach: Income Capitalization Approach: RECONCILIATION: FINAL ESTIMATE OF VALUE: October 9, 2017 October 13, 2017 $1,065,000. Not applicable. Not applicable. Inasmuch as the subject property consists of a vacant land parcel, the Sales Comparison Ap- proach, as applied to land value, is the only ap- proach considered applicable in the subject case. $1,065,000. LIDGIARD AND ASSOCIATES APPRAISERS -CONSULTANTS 2 20D-16 LRIA ➢A1+T�il The date of value employed in this report, and all opinions and computations expressed herein, are based on October 9, 2017, said date being generally concurrent with the valuation analysis process. PURPOSE OF THE APPRAISAL The purpose of this appraisal report is to express an estimate of the unen- cumbered fee simple market value of the subject property, absent any liens, leases, or other encumbrances, as of the date of value set forth above. The definition of market value is set forth in the following portion of this section following the heading "Definition of Market Value". Further, it is the purpose of this appraisal report to describe the subject property, and to render an opinion of the highest and best use based on (1) the character of existing and potential development of the property ap- praised, (2) the requirements of local governmental authorities affecting the subject property, (3) the reasonable demand in the open market for proper- ties similar to the subject property, and (4) the location of the subject proper- ty considered with respect to other existing and competitive districts within the immediate subject market area. Further, it is the purpose of this appraisal report to provide an outline of cer- tain factual and inferential information which was compiled and analyzed in the process of completing this appraisal study. INTENT AND USERS OF APPRAISAL The intended use of this appraisal report is to assist the City of Santa Ana in purchase negotiations with the private property owner. Intended users are City officials, along with consultants thereof, for Vie explicit purpose and in- tent indicated above. This report is not intended to be distributed to, or re- lied upon by, third parties. The property rights appraised herein are those of the unencumbered fee simple interest. Fee simple is defined in the 12� Edition of The Appraisal of Real Estate. as, "Absolute ownership by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, em- inentdomain, police power, and escheat." LIDGARD AND ASSOCIATES APPRAISBAS-CONSULTANTS C 20D-18 The undersigned does hereby certify, except as otherwise noted in this ap- praisal report, that: I have personally inspected the subject property from the adjacent rights-of- way; I have no present or contemplated future interest in the real estate which is the subject of this appraisal report. Also, I have no personal interest or bias with respect to the subject matter of this appraisal report, or the parties in- volved in this assignment. My engagement in this assignment, and the amount of compensation, are not contingent upon the reporting or development of pre -determined values or di- rection in value that favors (1) the cause of the client, (2) the amount of the value opinion, (3) the attainment of predetermined/stipulated results, or (4) the occurrence of a subsequent event directly related to the intended use of this appraisal. To the best of my knowledge and belief, the statements of fact contained in this appraisal report, upon which the analyses, opinions, and conclusions expressed herein are based, are true and correct. This appraisal report sets forth all of the assumptions and limiting conditions (imposed by the terms of this assignment or by the undersigned), affecting my personal, impartial, and unbiased professional analyses, opinions, and conclusions. The analyses, opinions, and conclusions, were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Ap- praisal Practice, and the Code of Professional Ethics. As of the date of this report, I have completed the requirements of the continuing education pro- gram of the State of California. Further, duly authorized representatives of the State, as well as the Appraisal Institute, have the right to review this report. I have not performed services, as an appraiser or in any other capacity, re- garding the property that is the subject of this report within the 3 -year period immediately preceding acceptance of this assignment. Jason P. Boyer pro- vided real property appraisal assistance to the person signing this report with respect to data collection, inspection of the property, and report preparation. No one other than the undersigned prepared the analyses, conclusions, and opinions of this appraisal study. Certified General Real Estate Appraiser California Certification No. AG 004014 Renewal Date: March 13, 2018 Date: October 13, 2017 LIDGARD AND ASSOCIATES APPRATS£RSLQNS UETANTS 4 20D-19 r-14101 :1 qr07.1ffn4=;JF_1 P -M-1 The appraiser, in connection with the following appraisal study, has: 1. Been retained, and has accepted the assignment, to make an objective analysis/valuation study of the subject property and to report, without bias, his estimate of fair market value. The subject property is particularly described in the follow- ing portion of this report in the section entitled Subject Property Description. 2. Toured the general area by automobile to acquaint himself with the extent, condition, and quality of nearby develop- ments, sales and offerings in the area, density and type of development, topographical features, economic conditions, trends toward change, etc. 3. Walked within the subject property, and some of the nearby neighborhood, to acquaint himself with the current particular attributes, or shortcomings, of the subject property. 4. Completed an inspection of the subject property for the purpose of becoming familiar with certain physical charac- teristics. 5. Made a visual observation concerning public streets, ac- cess, drainage, and topography of the subject property. 6. Obtained information regarding public utilities and sanitary sewer available at the subject site. 7. Made, or obtained from other qualified sources, calculations on the area of land contained within the subject property. Has made, or caused to be made, plats and plot plan draw- ings of the subject property, and has checked such plats and plot plan drawings for accuracy and fair representation. 8. Taken photographs of the subject property, together with photographs of the immediate environs. 9. Made, or caused to be made, a search of public records for factual information regarding the recent sales of the subject property, and for recent sales of comparable properties. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS R 20D-20 SCOPE OF THE APPRAISAL (Continued) 10, Has viewed, confirmed the sale price, and obtained certain other information pertaining to each sale property contained in this report. 11. Reviewed current maps, zoning ordinances, and other ma- terial for additional background Information pertaining to the subject property, and sale properties. 12. Attempted to visualize the subject property as it would be viewed by a willing and informed buyer. 13. Interviewed various persons, in both public and private life, for factual and inferential information helpful in this appraisal study. 14. Formed an opinion of the highest and best use applicable to the subject property appraised herein, 15. Formed an estimate of market value of the unencumbered fee simple interest in the subject property, as of the date of value expressed herein. 16. Prepared and delivered this appraisal report in summation of all the activities outlined above. L.IDGAI`,D AND ASSOCIATES APPRAISERS -CONSULTANTS 6 20D-21 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is made with the following understanding as set forth in items No. 1 through 19, inclusive: 1. That liability of Lidgard and Associates, Inc., along with the specific appraiser responsible for this report, is limited to the client only and to the fee actually received by the firm. There is no accountability, obligation or liability to any third party reader/user of this report. In the event this appraisal report is delivered to anyone other than the client for whom this report was prepared, it is the client's responsibility to make such party and/or parties aware of all limiting condi- tions and assumptions of this assignment and related dis- cussions. 2. That in the event the client or any third party brings legal ac- tion against Lidgard and Associates, Inc., or the preparer of this report, and the appraiser prevails, the party initiating such legal action shall reimburse Lidgard and Associates, Inc. and/or the appraiser for any and all costs of any nature, including attorney's fees, incurred in their defense. 3. This appraisal report is intended to comply with reporting requirements set forth in the Uniform Standards of Profes- sional Appraisal Practice, under Standard Rule 2-2(a). It contains a moderate level of detail with respect to the mar- ket data, appraisal methodology, and reasoning supporting the analysis, opinions, and conclusions. This report con- tains sufficient information for the intended use and users for which it was written. 4. That title to the subject property is assumed to be good and merchantable. Liens and encumbrances, if any, have not been deducted from the final estimate of value. The vesting was obtained from County Records, or other sources, and has been relied upon as being accurate. The subject prop- erty has been appraised as though under responsible own- ership. The legal descriptions are assumed accurate. LID GARDANDASSOCIATES APPRAISERS -CONSULTANTS FA 20D-22 ASSUMPTIONS AND LIMITING CONDITIONS (Continued) 5. That the appraiser assumes there are no hidden or unap- parent conditions of the subject property, subsoil, struc- tures, or other improvements, if any, which would render them more or less valuable. Further, the appraiser as- sumes no responsibility for such conditions or for the engi- neering which might be required to discover such condi- tions, That mechanical and electrical ;systems and equip- ment, if any, except as otherwise may be noted in this re- port, are assumed to be in good working order. The prop- erty appraised is assumed to meet all governmental codes, requirements, and restrictions, unless otherwise stated. 6. That no soils report; topographical mapping, or survey of the subject property was provided to the appraiser; there- fore information, if any, provided by other qualified sources pertaining to these matters is believed accurate, but no lia- bility is assumed for such matters. Further, information, es- timates and opinions furnished by others and contained in this report pertaining to the subject property and market da- ta were obtained from sources considered reliable and are believed to be true and correct. No responsibility, however, for the accuracy of such items can be assumed by the ap- praiser. 7. That unless otherwise stated herein, it is assumed there are no encroachments, easements, soil toxics/contaminants, or other physical conditions adversely affecting the value of the subject property, & That no opinion is expressed regarding matters which are legal in nature or other matters which would require special- ized investigation or knowledge ordinarily not employed by real estate appraisers, even though such matters may be mentioned in the report. 9. That no oil rights have been included in the opinion of value expressed herein. Further; that oil rights, if existing, are as- sumed to be at least 500 feet below the surface of the land, without the right of surface entry. LIDGARD AND ASSOCIATES AP PR AFS HRS -CON SU DrANTS 20D-23 ASSUMPTIONS AND LIMITING CONDITIONS (Continued) 10. That the distribution of the total valuation in this report be- tween land and improvements, if any, applies only under the existing program of utilization. The separate valuations for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. 11. That the valuation of the property appraised is based upon economic and financing conditions prevailing as of the date of value set forth herein. Further, the valuation assumes good, competent, and aggressive management of the sub- ject property. 12. That the appraiser has conducted a visual inspection of the subject property and the market data properties. Should subsequent information be provided relative to changes or differences in (1) the quality of title, (2) physical condition or characteristics of the properties, and/or (3) governmental restrictions and regulations, which would increase or de- crease the value of the subject property, the appraiser re- serves the right to amend the final estimate of value. 13. That the appraiser, by reason of this appraisal, is not re- quired to give testimony in court or at any governmental or quasi -governmental hearing with reference to the property appraised, unless contractual arrangements have been previously made therefor. 14. That drawings, plats, maps, and other exhibits contained in this report are for illustration purposes only and are not necessarily prepared to standard engineering or architec- tural scale. 15. That this report is effective only when considered in its entire form, as delivered to the client. No portion of this report will be considered binding if taken out of context. 16. That possession of this report, or a copy thereof, does not carry with it the right of publication, nor shall the contents of this report be copied or conveyed to the public through ad- vertising, public relations, sales, news, or other media, with- out the written consent and approval of the appraiser, par- ticularly with regard to the valuation of the property LIDHGARD AND ASSOCIATES APPRAISERS -CONSULTANTS NJ 20D-24 ,ASSUMPTIONS AND LIMITING; CONDITIONS (Continued) appraised and the identity of the appraiser, or the firm with which he is connected, or any reference to the Appraisal In- stitute, or designations conferred by said organizations, 17. That the form, format, and phraseology utilized in this report, except the Certification; and Terms and Definitions, shall not be provided to, copied, or used by, any other real estate appraiser, real estate economist, real estate broker, real es- tate salesman, properly manager, valuation consultant, in- vestment counselor, or others, without the written consent and approval of Scott A. Lidgard, 18. That the valuation analysis employs the hypothetical condi- tion that the site is fully entitled for the development of a 7 - unit townhouse complex as proposed. 19. That this appraisal study is considered completely confiden- tial and will not be disclosed or discussed, in whole or in part, with anyone other than the client, or persons designat- ed by the client. LIDGAR D AND ASSOCIATES All IS ERS -CONS U LTANTS 10 20D-25 TERMS AND DEFINITIONS Certain technical terms have been used in the following report which are de- fined, herein, for the benefit of those who may not be fully familiar with said terms. MARKET VALUE (or Fair Market Value): Fair 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 under 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 property taken for which there is no rele- vant, comparable market is its value on the date of valuation as de- termined by any method of valuation that is just and equitable." SALES COMPARISON APPROACH: One of the three accepted methods of estimating Market Value. This ap- proach consists of the investigation of recent sales of similar properties to determine the price at which said properties sold. The information so gath- ered is judged and considered by the appraiser as to its comparability to the subject property. Recent comparable sales are the basis for the Sales Comparison Approach. COST -SUMMATION APPROACH: Another accepted method of estimating Market Value. This approach con- sists of estimating the new construction cost of the building and yard im- provements and making allowances for appropriate amount of depreciation. The depreciated reconstruction value of the improvements is then added to the Land Value estimate gained from the Sales Comparison Approach. The sum of these two figures is the value indicated by the Cost -Summation Ap- proach. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 11 20D-26 J!9BMS AND DEFINITIONS (Continued) INCOME CAPITALIZATION APPROACH• The Income Capitalization Approach consists of capitalizing the net income of the property under study. The capitalization method studies the income stream, allows for (1) vacancy and credit loss, (2) fixed expenses, (3) operat- ing expenses, and (4) reserves for replacement, and estimates the amount of money which would be paid by a prudent Investor to obtain the net in- come. The capitalization rate is usually commensurate with the risk, and is adjusted for future depreciation or appreciation in value. DEPRECIATION: Used in this appraisal to indicate a lessening in value from any one or more of several causes. Depreciation .is not based on age alone, but can result from a combination of age, condition or repair, functional utility, neighbor- hood influences, or any of several outside economic causes. Depreciation applies only to improvements. The amount of depreciation is a matter for the judgment of the appraiser. HIGHEST AND BEST USE: Used in this appraisal to describe that private use which will (1) yield the greatest net return on the investment, (2) be permitted or have the reasona- b!e probability of being permitted under applicable laws and ordinances, and (3) be appropriate and feasible under a reasonable planning, zoning, and land use concept. L.IDGARD AND ASSOCIATES APPRAISURS-CONSV LTANTS 12 20D-27 SUBJECT PROPERTY Aerial view of subject property situated at the northwest corner of Washington Avenue and Penn Way, within the City of Santa Ana. See additional photographs in the Addenda Section. APPARENT VESTEE: Pacific Legacy Real Estate & Investments, Inc. Mailing Address: 17853 Santiago Blvd., #107-484 Villa Park, California 92861 Telephone: c/o Sam Olson (714)785-5544 PROPERTY ADDRESS: 651-657 East Washington Avenue Santa Ana, California LEGAL DESCRIPTION: Portion of Block 12, Santa Ana East, per map recorded in Book 1, Page 93 of Maps, and a portion of Section 7, Township 5 South, Range 9 West, San Bernardino Baseline and Meridian. A complete metes and bounds legal description was not provided for review. LIDGARD AND ASSOCIATES A P PRAIS ERS -CONSULTANTS 1 20D-28 SITE DESCRIPTION Appears to be adequate, however, a soils LOCATION: Northwest corner of Washington Avenue SOIL CONTAMINATION: and Penn Way, within the corporate limits of the City of Santa Ana, MAP COORDINATES: Thomas Bros. Map Page 829, Grid G-2. CENSUS TRACT: Property located within Government Census ACCESS: Tract No. 630. 10, LAND SHAPE: Irregular land configuration; see highlighted portion of plat map on the opposite page. DIMENSIONS: Various dimensions; reference plat map. LAND AREA: 26,598± square feet, per architectural STREET SURFACING: plans/specifications prepared by Habitat for CURB AND GUTTER: Humanity dated December 29, 2016. TOPOGRAPHY: Effectively level topography. DRAINAGE: Appears to be adequate; no depressions or low areas were noted within the boundaries of the subject property which would cause a water ponding condition during the raining season. SOIL STABILITY: Appears to be adequate, however, a soils report was not provided for review. SOIL CONTAMINATION: None known or observed, however, a soils study was not provided for review. The subject property has been appraised herein as though free of soil contaminants. ACCESS: The subject property has 181.22 lineal feet of frontage along Washington Avenue, and 466.97 feet along Penn Way. RIGHTS-OF-WAY WIDTH: Washington Avenue: 50-60 feet. Penn Way: varies. STREET SURFACING: Asphalt paved traffic lanes. CURB AND GUTTER: Concrete curb and gutter (each side of each street). LIDGARDANVD ASSOCIATES A P PRAISERS -CONSULTANTS 2 20D-29 SITE DESCRIPTION (Continued) SIDEWALK: Concrete sidewalk along portions of subject frontage). STREET LIGHTS: Mounted on ornamental standards. PUBLIC UTILITIES: Water, gas, electric power, and telephone are available at the site. SANITARY SEWER: Available at site. ENCROACHMENTS: None apparent. EASEMENTS: A title report pertaining to the subject property was not provided for review. Easements, if existing, are assumed to be located along property boundaries, not interfering with any highest and best use development. It is assumed there are no "cross -lot" or "blanket" easements encumbering the subject parcel. EARTHQUAKE FAULT: The subject property is not located within the Alquist-Priolo special earthquake fault study zone. The greater southern California area, however, is generally prone to earthquakes and other seismic disturb- ances. No studies have been provided for review. No responsibility is assumed for the possible impact on the subject property of seismic activity and/or earthquakes. FLOOD HAZARD AREA: The subject property is located within Zone X, per data issued by the Federal Emergency Management Agency. Property is depicted on Flood Map Panel 06059C0163J, dated December 3, 2009. ILLEGAL USES: None observed PRESENT USE: Vacant land. ZONING: The subject property is located within the UN -2 (urban neighborhood -2) zone of the City of Santa Ana. The purpose and intent of LIDGARDANDASSOCIATES APPRAISERS -CONSULTANTS 3 20D-30 (Continued) ZONING: (Continued) the UN -2 zone classification is to accommodate a variety of housing types with some opportunities for live -work, neighborhood -serving retail and cafe oriented uses. Specific development standards applicable to the subject parcel will be governed by a comprehensive site plan review process. It is anticipated that development standards will be similar to those of the R-3 zone, which standards are broken into four different classes based on land size. The subject parcel, as a single entity, falls within Class No. 1. Current development standards applicable to the subject parcel include a (1) minimum lot size of 12,000 square feet, (2) maximum based development density of 15 dwelling units per acre, (3) potential bonus density of an additional seven dwelling units per acre, (4) minimum street frontage of 75 feet, and (5) maximum building height of 35 feet. Minimum building setback area require- ments are as follows: Front setback: 20 feet Interior side setback: 6 feet. Street side setback: 10 feet Rear setback: 15 feet. The on-site automobile parking requirement varies depending on the type and number of dwelling units. In general, all residential zones require at least two automobile parking spaces on the same lot with each one family dwelling. One parking space must be an enclosed private garage. Based on an inspection of the subject property, as well as a review of current zone standards, the optimal utility of the subject site is as zoned. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 4 20D-31 SITE DESCRIPTION (Continued) HIGHEST AND BEST USE: The reader is referred to the first portion of the Valuation Analysis Section for a detailed discussion regarding the highest and best use of the subject property. EXISTING IMPROVEMENT COMMENT: There are no building or other on-site improvements located within the boundaries of the subject property which contribute significant monetary value in a highest and best use context. DEVELOPMENT PLAN COMMENT: The property owners are nearing the end of the entitlement process for a 7 -unit townhouse development on the subject property. The proposed unit mix includes five 2-bedroom/3-bathroom dwelling units and two 3-bedroom/3-bathroom units ranging in size from 883 to 1,296 square feet of living area. The development will consist of a 6,987 square foot building footprint with a 53% lot coverage ratio and a density of one unit per 3,800 square feet of land area. Each unit will have a two -car garage and private balcony. There will be two on-site guest parking spaces. ASSESSOR'S PARCEL NO.: ASSESSED VALUATIONS: The owner indicated that entitlement costs to date, including interest expenses, total approximately $220,000. Final building permits are scheduled to be issued in November, 2017. 398-150-02 and 398-152-16 Land: $590,000. Improvements: $ 00. LIDGARDANDASSOCIATES APPRAISERS -CONSULTANTS 5 20D-32 ASSESSMENT DATA (Continued) TAX CODE AREA: 11021. TAX YEAR: 2017-2018 REAL ESTATE TAXES: $6,122.20* SPECIAL ASSESSMENTS: None known. Real estate property taxes to be adjusted to reflect approximately 1.15% of the sale price, in the event the property were sold to a private party. OWNERSHIP HISTOM COMMENT: Title to the subject property was acquired by the present owner on July 15, 2016 as Document No. 822501. The indicated purchase price was $590,000, effectively all cash. The site was partially entitled for development at the time of sale. NEIGHBORHOOD ENVIRQNMgN7 COMMUNITY: The City of Santa Ana was incorporated on June 1, 1886, and functions as a general law city under a council-manager form of gov- ernment. The Santa Ana City Council is comprised of seven council members consisting of a directly elected Mayor and six council members. The council members are elected city-wide, but are nominated from one of six geographic wards within the City, "They serve a four-year term, and are restricted to a two -consecutive term limit. The Mayor is elected every two years. The City of Santa Ana is situated in central Orange County. Neighboring and adjoining municipalities include the Garden Grove, Orange, Tustin, Costa Mesa, Fountain Valley, and Westminster. Major nearby LIDGARDAraDASSOCrATES APPRAISE RS-CONSU LTANTS 6 20D-33 NEIGHBORHOOD ENVIRONMENT (Continued) COMMUNITY: (Continued) freeways include the Santa Ana (5) Freeway, Costa Mesa (55) Freeway, and the Garden Grove (22) Freeway. The City of Santa Ana encompasses 27.3 square miles; the elevation is 110 feet above sea level. The total population within City limits is 324,528 persons. The average household size is approximately four persons. The median household income is $43,412. There are a total of 76,896 housing units including attached and detached dwellings. The current utilization of land within City boundaries, as set forth in the general plan land use element, is generally distributed as follows: Residential uses: 54.0% Commercial retail/office: 12.3% Industrial/manufacturing: 15.8% Mixed use: 4.8% Institutional: 5.7% Vacant land: 7.4% The City of Santa Ana has a diverse employment base. The top ten employers are as follows: Employer Employees County of Orange 15,390 Ingram Micro 4,000 Rancho Santiago Comm. College Dist. 2,300 United States Postal Service 2,000 Tenet Healthcare 1,500 Freedom Communications 900 First American 900 Corinthian Colleges 858 California Dept. of Mental Health 800 United Building Services 800. LIDGARDANDASSOCIATES APPRAISERS -CONSULTANTS 20D'-34 NEIGHBORHOOD ENVIRONMENT (Continued) COMMUNITY: (Continued) There is a variety of cultural, recreational, educational, and entertainment options in the greater central Orange County area. Tour -ism and entertainment facilities include the Anaheim Convention Center, Honda Center, Angel Stadium, Disneyland Resort, Anaheim Resort, The Rinks Anaheim Ice, Orange County Fairgrounds, Dad Miller Golf Course, and the Grove Theater. LOCATION: The subject property is located toward the easterly portion of the City of Santa Ana in an area commonly known as the Station District. The neighborhood is in close proximity to the Santa Ana (Interstate 5) Freeway, Costa Mesa (State Route 55) Freeway, as well as the Santa Ana Train Station. LAND USES: Land uses along Santa Ana Boulevard within the immediate area are quite varied, and include residential, commercial and quasi commercial/industrial developments such as automobile service facilities, light manufacturers, as well as newly constructed mixed use live -work residential develop- ments. The predominant land use in the area is the Santa Ana Train Station, which is situated at the southeast quadrant of Santa Ana Boulevard and Santiago Avenue. Com- mercial retail uses are scattered throughout the general area. The intensity of commercial retail development increases easterly and westerly of the subject vicinity, specifically along Main Street and Grand Avenue. The Santa Ana Civic Center is located approximately one mile southwest of the subject neighborhood. The Civic Center is LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 8 20D-35 JZ 171 Lei lu l • o• LAND USES: (Continued) improved with public facilities including the Santa Ana Superior Court, Orange County Assessor's offices, Sheriff's station, post office, City Hall, OCTA transit terminal, and the Ronald Reagan Federal Courthouse facility. Secondary streets within the general area are improved with single family and low density multiple family residential developments such as apartment complexes, condominiums, and townhouse developments. Overall compatibility of existing uses in the subject vicinity is rated average. There are no substantial external influences which would significantly impact the overall marketability or value of the subject parcel. BUILT-UP: The immediate neighborhood is effectively 85% built-up. OCCUPANCY: Industrial: 40±% owners. 60±% tenants. Residential: 70±0/o owners. 30±0/b tenants. Commercial: 40±0/b owners. 60±% tenants. PRICE RANGE: Commercial land values within the greater northern Orange County market area generally range between $30.00 and ex- ceeding $60.00 per square foot of land area. The upper range of value pertains to rela- tively prominent corner locations along primary thoroughfares suitable for high end retail uses such as service station facilities and fast food restaurants. Residentially zoned land parcels generally range in value from $30.00 to exceeding $90.00 per square foot of land area. The LIDGARD AND ASSOCIATES APPRMS HRS -CONSULTANTS 0 20D-36 NEI9141130RHOOD ENVIRONMENT (Continued) PRICE RANGE: (Continued) upper range of value pertains to sites that can accommodate high density develop- ments. Residential condominium dwelling units generally range in value from $300,000 to slightly exceeding $500,000. Single family residential detached dwellings generally range in value from $375,000 to exceeding $600,000. The lower range of value pertains to relatively small dwellings in marginal condition, whereas the upper value range pertains to larger dwellings which have been renovated and upgraded throughout the years. Multiple family residential properties are within a much broader value range; smaller complexes such as duplexes and triplexes, generally range from $450,000 to exceeding $700,000.. Larger multiple family residential complexes range in value in excess of $1,000,000. Improved commercial and industrial properties range in value from approximately $800,000 to exceeding several million dollars. AGE RANGE: Existing developments in the area range from 10 years to exceeding 50 years. PRIDE OF OWNERSHIP: Overall pride of ownership, evidenced by an ongoing maintenance program, is rated average. OTHER: The availability and adequacy of public facilities, transportation, and retailloffioe commercial facilities are rated average. The City of Santa Ana provides police and fire protection to the subject district. See Valuation Analysis in the following section, LIDGARD AND ASSOCIATES APP RAI S ERS -CONSULTANTS 10 20D-37 VALUATION ANALYSIS The purpose of this valuation study is the estimation of market value of the unencumbered fee simple interest in the subject underlying land parcel based on the hypothetical condition that the site is fully entitled for the development of a 7 -unit residential townhouse complex as proposed. Said development represents the highest and best use of the subject land. A hypothetical condition is defined in The Dictionary of Real Estate Appraisal, Sixth Edition, Page 113, published by The Appraisal Institute, as, "A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property, or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis." In the event conditions relating to the use of the hypothetical condition do not materialize, assignment results set forth herein might be affected. Prior to the application of the appraisal process, which in this case employs the Sales Comparison Approach, as applied to residential land value, it is necessary to consider and analyze the highest and best use of the subject property. HIGHEST AND BEST USE ANALYSIS: Highest and best use is defined in The Appraisal of Real Estate, by the Appraisal Institute, 14th Edition, Page 332, as: "The reasonably probable and legal use of property that results in the highest value." In the process of forming an opinion of highest and best use, consideration must be given to various environmental and political factors such as zoning restrictions, probability of zone change, private deed restrictions, location, land size and configuration, topography, and the character/quality of land uses in the immediate and general subject market area. There are three basic criteria utilized in the highest and best use analysis of a property as if vacant, as well as presently improved. The three criteria are summarized as follows: 1. Physically possible. 2. Legally permissible. 3. Financially feasible. LED ARDANDASSOCIATES APPRAISERS CONSULTANTS 20D-38 VALUATION ANALYSIS (Continued) HIGHEST AND BEST USEANALYIS: (Continued) The foregoing are typically considered sequentially; for example, a specific use may prove to be maximally productive, however, if it is not legally permissible, or physically possible, its productivity is irrelevant. Physically Possible: The physical possibility of developing a specific property is governed, in part, by the size, shape, area, and terrain of the property in question. The availability of public utilities is also an important consideration in the analysis of a property's overall development potential. Additional physical considerations are warranted when analyzing the highest and best use of the subject property, as presently improved. The size, architectural design, and condition of the existing building improvements are important elements, and may have a substantial impact on the highest and best use of a property, as presently improved. Legally Permissible: Legally permissible uses are determined, in part, by a community's general plan, zoning requirements, local building codes, and private deed restrictions. The general plan of a community is established to assure continuity of development within the community and the surrounding area. There is usually a consistency between the general plan of a community and the various zone classifications. The zone classification sets forth the various types of development allowed within a specific zone district. Zoning requirements typically constitute the available choices of development for a property. Local building codes are generally addressed as part of the zone classification, and include items such as maximum building densities, building height restrictions, setback and parking requirements, etc. Private deed restrictions relate to mutual agreements under which a property was acquired. Said restrictions may prohibit certain types of development. Financially Feasible: Those uses which meet the first two criteria, i.e. physically possible and legally permissible, are further analyzed in order to determine which uses produce an adequate return on the investment. The specified use is EMOARD AND ASSOCIATES APPRAISERS -CONSULTANTS 2 20D-39 VALUATION ANALYSIS (Continued) HIGHEST AND BEST USE ANALYIS: (Continued) Financially Feasible: (Continued) considered financially feasible if the net income capable of being generated is enough to satisfy the required rate of return and provide a return on the land. Among those uses which are considered financially feasible, that use which produces the highest price, or value, consistent with the required rate of return, is considered the highest and best use of the property. Conclusion: The subject property has a nonsignalized corner location at the intersection of two secondary streets. The site has an irregular land configuration, effectively level topography, and contains 26,598 square feet of land area. Vehicular access, as well as pedestrian access to the subject parcel are rated above average. All public utilities such as water, gas, electric power, telephone, as well as sanitary sewer are available to the site. The physical characteristics of the subject parcel are considered adequate to accommodate a variety of legally permissible uses. As stated, the subject property is located within the UN -2 (urban neighborhood -2) zone classification of the City of Santa Ana. Legally permitted uses include a variety of housing types with some opportunities for live -work, neighborhood -serving retail, and caf6 oriented businesses. The property owners are nearing the end of the entitlement process for a 7 - unit townhouse development on the subject property. The proposed unit mix includes five 2-bedroom/3-bathroom dwelling units and two 3- bedroom/3-bathroom units ranging in size from 883 to 1,296 square feet of living area. The development will consist of a 6,987 square foot building footprint with a 53% lot coverage ratio and a density of one unit per 3,800 square feet of land area. Each unit will have a two -car garage and private balcony. There will be two on-site guest parking spaces. After considering the (1) physical characteristics of the subject site, (2) those uses which are legally permissible and financially feasible, and (3) economic conditions in the immediate and general subject market area, the highest L IDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 3 20D-40 VALUATION ANALYSIS (Continued) HIGHEST AND BEST USE ANALYIS: (Continued) Financially Feasible: (Continued) and best use of the subject site, as if vacant, is residential development in accordance with standards set forth in the current zone classification. VALUATION METHODS: There are three conventional methods (approaches) which can be used to estimate value. They are the Sales Comparison Approach, Cost -Summation Approach, and Income Capitalization Approach. Following is a brief description of each approach to value. Sales Comparison Approach: This approach consists of the investigation of recent sales of similar properties to determine the price at which said properties sold. The information so gathered is judged and considered by the appraiser as to its comparability to the subject property. Recent comparable sales, either vacant land or improved properties, are the basis for the application of the Sales Comparison Approach. Cost -Summation Approach: The Cost -Summation Approach consists of estimating the construction cost new of the building and yard improvements and making allowances for the appropriate amount of accrued depreciation. The depreciated reconstruction value of the improvements is then added to the land value estimate. The sum of these two figures is the value indicated by the Cost - Summation Approach. Income Capitalization Approach: The Income Capitalization Approach consists of the capitalizing of net income of the property under appraisement. The capitalization methodology studies the income stream, allows for (1) vacancy and credit loss, (2) fixed expenses, and (3) oper- ating expenses. The value indicated by the Income Capitalization Approach represents the money which would be paid by a prudent investor to obtain the net income capable of being generated by the property. The capitalization rate is usually commensurate with the inherent risk. T GARDANDASSOCIATES APPRAISERS -CONSULTANTS 4 20D-41 VALUATION ANALYSIS (Continued) VALUATION METHODS: (Continued) Inasmuch as the subject property consists of a vacant land parcel, the Sales Comparison Approach, as applied to residential land value, is the only approach considered applicable in the subject case. 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, the Sales Comparison Approach attempts to equate the subject property with sale properties by analyzing and weighing the various elements of comparability. The Sales Comparison Approach was applied after conducting an investigation of market data (residential land sales) in the greater subject market area. The reader is referred to the Market Data Section for comprehensive information pertaining to each sale property employed herein. Reference the Market Data Map on the following page for an illustration of the location of the various sale properties. Primary indicators studied included sales of residential zoned land parcels as well as land sales construction cost estimates and depreciation schedules. Other elements considered included (1) pride of ownership exhibited by an aggressive and on-going maintenance program, and (2) trends toward change evidenced by private redevelopment and remodeling, or gradual continued building degeneration in certain areas. The knowledge and understanding of present and historical value patterns and trends affecting the local real estate market are based on the observation of market conditions and the appraisal of other residential properties, as well as information obtained from various sources which include the following: • Owners: Interviews were conducted with owners of residential properties in the general research area to determine various market trends, and value patterns. • Tenants: Interviews were conducted with various tenants of properties located within the immediate subject market area. LrDGARD ANDASSOC:IATES APPRAISERS -CONSULTANTS 5 20D-42 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) • Real estate brokers and salespersons: A number of active brokers and salespersons within the greater subject market area were interviewed regarding existing and historical lease and sales data, as well as value patterns and trends. • Public officials: Various public officials were interviewed regarding (1) existing or proposed projects which have an impact on real property values, (2) economic trends, (3) level of public services, (4) zone classifications and building standards, and (5) properly tax structure and assessment districts. • Public officials: Information was gathered and studied regarding population, unemployment levels, employment centers, residential sales data as well as rental data, and other demographic and economic factors. Land Value: Following is a summary of those sales considered helpful when estimating the value of the subject underlying land parcel. No. Dev. Data Date Zoning Land Area Units Density Sale Price Per SF A. 3-16 RM 36,138 sf 13 1/2,780 sf $1,535,000.' $42.48 W/S Newland St., 140'SIO Slater Ave., Huntington Beach B. 4-16 RH 18,125 sf 6 1/3,021 sf $ 650,000. $35.86 SWC Western Ave. and Rutledge Ave., Stanton C. 5-16 R-2 9,148 sf 2 1,4,574 sf $ 273,000. $29.84 SEC Cypress Ave. and Adams St., Santa Ana D. 9-16 C-12 19,688 sf 12 1/1,641 sf $ 950,000. $48.25 W/S Hewes St., 1 13' S/O Chapman Ave., Orange E. 2-17 RM 20,413 sf 5 1/4,083 sf $ 730,000. $35.76 NIS Kermore Ln., 172'W/0 Keenan PI., Stanton F. 7-17 R-2 20,196 sf 3 1/6,732 sf $ 620,000. $30.70 E/S Bewley St., 80' N/O 11" St., Santa Ana 'Inclusive of estimated demolition and clearing expenses. ! Property rezoned for development of multiple family housing. LUDGARD AIV D ASSOCIATES APPRAISERS -CONSULTANTS 6 20D-44 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) The properties surveyed are located within the general subject vicinity, and represent the most recent comparable land sales available for analysis. The properties range in size from 11,900 to 16,150 square feet of land area and have developable densities ranging from one unit per 403 square feet to one unit per 2,381 square feet. The overall purchase prices range from $510,000 to $1,030,000, reflecting a range of value between $42.86 and $65.48 per square foot of land area. Due to the absence of a representative number of land sale properties having recently sold within the immediate subject market area, it was necessary to expand the (1) chronological time frame, and (2) geographic search area to include the neighboring communities of Huntington Beach, Stanton, and Orange. Particular consideration has been assigned to differing market conditions, general location and immediate environmental influences in the analysis of the individual sale properties. All of the sales employed herein conveyed title to the fee simple interest, and represent arm's length transactions. Financing terms of each sale are considered generally typical of the subject market area. Adjustments for property rights conveyed, conditions of sale, and financing terms, therefore, are not warranted. Market Conditions: Certain of the land sales data considered extended over a time period back to the first quarter of 2016. The time frame permitted the development of a rather comprehensive real estate market profile. The sales employed in this report are set forth in chronological order, and took place between March, 2016 and July, 2017. Based on discussions with residential brokers and salespersons, as well as extensive media coverage, a substantial upward trend in value and market activity commenced in 2012 after relatively stagnant market conditions. The escalating value trend continues, albeit at a slower pace. It is apparent that the supply of residential properties is generally in equilibrium with the demand. This condition is anticipated to continue throughout the remaining portion of this year. Differing market conditions impacting the sale properties were considered in the valuation analysis employed herein. YJ GARD AND ASSOCIATES APPRAISERS -CONSULTANTS 7 20D-45 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Elements of Comparability: After viewing each of the sale properties, and obtaining certain information pertinent to land value, the appraiser analyzed the various elements of comparability for each sale property which, among others, include the following: General location. Availability of public alley Immediate environmental influences. Zoning. Vehicular and pedestrian access. Vehicular and pedestrian traffic. Overall developab ility. Site frontage/depth ratio. Site prominence and exposure. Proximity to freeway. A Relative Comparison Analysis (RCA) has been conducted between the individual comparable properties and the subject property. The RCA is a qualitative technique for analyzing comparable sales, and is a valuable tool employed to illustrate whether the characteristics of a comparable property are inferior, superior, or similar to those of the property under appraisement. The Relative Comparison Analysis is similar to paired sales data analysis. This technique acknowledges the imperfect nature of the subject real estate market. The primary objective is to bracket the subject property between the comparable sales with respect to the similarity, superiority, and inferiority thereof. Superior elements of comparability of an individual sale property would reflect a downward adjustment to the value indication thereof. Conversely, inferior elements suggest an upward adjustment. Additionally, it is important to note that the above elements of comparability were not assigned equal weight in making the analysis of each property. The general location, immediate environmental influences, vehicular accessibility, overall developable density, site conditions, site prominence/ - exposure, and land plottage were considered the most important factors in the subject case, as follows: General Location: Social, economic, and governmental forces have a substantial influence on property values. Locational factors considered include, but are not limited to, demographics such as proximity LIDGARDAND ASSOCIATES APPRAISERS -CONSULTANTS I 20D-46 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value. (Continued) Elements of Comparability: (Continued) to housing, schools, employment centers, transportation facilities, as well as quality of public services, proximity to freeway corridors, enforcement of codes, and median income levels. Immediate Environmental Influences: Considered with respect to the density and quality of existing developments within the immediate proximity to a specific property. By contrast, immediate environmental influences represent a myopic consideration of location as opposed to more generalized characteristics considered with respect to general location. Vehicular Accessibillty: Multiple family residential properties rely heavily on the ease of vehicular accessibility. Generally, corner locations with multiple access points command higher values than interior parcels having single point ingress/egress. Developable Density. The overall developable density of a particular property has a significant impact on the underlying land value of residentially zoned parcel. A direct relationship exists between density and the purchase price per square foot of land area, i.e. higher densities typically reflect higher rates on a per square foot basis. Conversely, there is an inverse relationship with respect to the purchase price per developable unit. Higher densities typically result in a lower per unit value. The purchase price per square foot of land area has been utilized as the primary unit of analysis due to the wide range of developable densities among the sale properties employed herein. Developable density has been assigned particular consideration. Site conditions. This factor is considered with respect to the condition of the property at the time of the sale. While certain properties are acquired based on the underlying land value, often times LIDGARD AND ASSOCIATE S APPRAISE" -CONSULTANTS 9 20D-47 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Elements of Comparability: (Continued) improvements exist on the site which either contribute or detract from the value. In many instances, an additional expense must be incurred to demolish existing improvements which expense increases the cost of the underlying land. In contrast, however, a nominally improved property may be receiving income for an interim period during the planning and entitlement phase of a future development. Site Prominence/Exposure: Multiple family residential properties rely on site prominence/ - exposure as a means of attracting tenants. The advertising exposure along commercial thoroughfares is viewed beneficial, however, increased traffic noise is also a detriment. In general terms, signalized corner parcels offer superior prominence/ - exposure than interior sites. Land Area: The functional utility or desirability of a site often varies depending on the types of contemplated uses. Different prospective uses have ideal size and shape characteristics that influence value as well as highest and best use. The purchase price per square foot of land area can fluctuate greatly depending on the size of property. Smaller parcels lend themselves to a higher degree of market participants capable of purchasing and developing the sites. Due to the precept of "economies of scale", it is the general consensus that smaller parcels tend to sell on a higher per square foot basis than larger parcels. Based on a review of the land value indicators employed herein, it is apparent that there is no significant differential in value attributable to land size. Marketability of each sale property was also considered. Marketability is the practical aspect of selling a property in view of all the elements constituting value, and certain economic and financing conditions prevailing as of the date of sale. All of the sale properties employed herein are considered having generally similar marketability as the subject property. LIDGARD AND ASSOCIATES APPAA [ SE RS -CONSULTANTS 10 I+11ir: VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Sales Comparison Analysis: Following are comments regarding the various sale properties employed herein. Data A Located on the west side of Newland Street, beginning 140 feet south of Slater Avenue, Huntington Beach. The property is improved with an older residential development which was demolished and cleared from the site at a reported cost of $135,000. The buyer intends to construct a residential development containing 13 dwelling units. The developable density reflects one unit per 2,780 square feet of land area. The parcel has an interior (versus corner) location, effectively rectangular land configuration, effectively level topography, and contains 36,138 square feet of land area. The purchase price was $1,400,000, all cash. The deed recorded March 29, 2016 as Document No. 130888. Further details regarding the transaction are summarized as follows: Grantor: Pacific Coast Community Church Grantee: Olson -Huntington Beach 3, LLC Assessor's Parcel No.: 167-492-05, 06 Data B Located at the southwest corner of Western Avenue and Rutledge Avenue, Stanton. The site is improved with a single family residence which represents relatively nominal value in a highest and best use context. The property is surrounded by apartment building complexes and can reportedly accommodate a development comprising 6 dwelling units reflecting a density of one unit per 3,021 square feet of land area. The parcel has a nonsignalized corner location along a moderately traveled thoroughfare across from industrial developments, trapezoidal land configuration, effectively level topography, and contains 18,125 square feet of land area. LIDGARDANDASSOCIATES APPRAISERS.CONSULTANTS 11 20D-49 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Sales Comparison Analysis: (Continued) The property was originally offered for sale at $650,000 and was on the market 144 days. The purchase price was $650,000, which included $162,500 cash down to a concurrent first trust deed note of 487,500 with First Cap. The cash down payment represents 25% of the total purchase price. The deed recorded April 15, 2016 as Document No, 165137. Further details regarding the transaction are summarized as follows: Grantor: Okada Revocable Trust Grantee: Martin & Carmen L. Leon Assessor's Parcel No.: 131-641-08 Data C Located at the southeast corner of Cypress Avenue and Adams Street, Santa Ana. The site was vacant at the time of sale; immediate development plans are unknown. Based on current zone standards, the site can accommodate two dwelling units. The developable density reflects one unit per 4,572 square feet of land area. The parcel has a nonsignalized corner location across from industrial uses and adjacent to a railroad corridor, effectively rectangular land configuration, level topography, and contains 9,148 square feet of land area. The property was originally offered for sale at $285,000 and was on the market 14 days. The purchase price was $273,000, all cash. The deed recorded May 23, 2016 as Document No. 230237. Further details regarding the transaction are summarized as follows: Grantor: PM Investment Groups, Inc. Grantee: Mira Properties, LLC Assessor's Parcel No.: 016-044-12 Data D Located on the west side of Hewes Street, beginning 113 feet south of Chapman Avenue, Orange. The site was vacant at the time of sale and situated within a commercial zone district. An LrDOARDAND ASSOCIATES APPRAISERS -CONSULTANTS 12 20D-50 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Sales Comparison Analysis: (Continued) application for a change of zoning was processed during escrow to allow for a multiple family residential development comprising 12 dwelling units. The developable density reflects one unit per 1,641 square feet of land area. The parcel has an interior (versus corner) location, rectangular land configuration, effectively level topography, and contains 19,688 square feet of land area. The purchase price was $950,000, all cash and was entitled for development upon closing of escrow. The property reportedly sold at a discount due to a joint venture agreement between the buyer and seller. The deed recorded September 9, 2016 as Document No. 434671. Further details regarding the transaction are summarized as follows: Grantor: SMRS Properties, LLC Grantee: Encore -Hewes, LLC Assessor's Parcel No.: 392-181-21 Data E Located on the north side of Kermore Lane, beginning 172 feet west of Keenan Place, Stanton. The site is improved with an older residential development representing relatively nominal value in a highest and best use context. The site can reportedly accommodate five dwelling units reflecting a developable density of one unit per 4,083 square feet of land area. The parcel has an interior (versus corner) location, rectangular land configuration, effectively level topography, and contains 20,413 square feet of land area. The property was originally offered for sale at $730,000, and was on the market 22 days. The purchase price was $730,000, all cash. The deed recorded February 16, 2017 as Document No. 104394. Further details regarding this transaction are summarized as follows: LIDGARD AND A.SSOC:IATES APPRAISERS -CONSULTANTS 13 20D-51 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Sales Comparison Analysis: (Continued) Grantor: Soon Kap Hahn Grantee: Gerhardt 8. Schupmann Assessor's Parcel No.: 079-751-08 Data F Located on the east side of Bewley Street, beginning 80 feet north of 11 'h Street, Santa Ana. The site was vacant at the time of sale; immediate development plans are unknown. The site can reportedly accommodate three dwelling units reflecting a developable density of one unit per 6,732 square feet of land area. The parcel has an interior (versus corner) location, rectangular land configuration, effectively level topography, and contains 20,196 square feet of land area. The property was originally offered for sale at $720,000, and was on the market 48 days. The purchase price was $620, all cash. The deed recorded July 14, 2017 as Document No. 289728. Further details regarding this transaction are summarized as follows: Grantor: John T. Robertson Grantee: John Le & Teresa Huynh Assessor's Parcel No.: 198-102-20 Reference the Market Analysis Comparison Grid set forth on the following facing page. The land sale properties have been compared to the subject property with consideration assigned to property rights conveyed, conditions of sale, sale terms (financing), as well as the significant elements of comparability. By way of review and comparison, the subject property has a nonsignalized corner location at the intersection of two secondary streets. The site has a rectangular land configuration, effectively level topography, and contains 26,598 square feet of land area. The subject property has been considered and appraised herein based on the hypothetical condition that full entitlements have been achieved for the development of a 7 -unit townhouse complex as proposed. LUDOnxDANnASSOC S A P P RA ] S E R S -CONSULTANTS 201-52 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH. (Continued) Land Value: (Continued) Sales Comparison Analysis: (Continued) All of the sale transactions employed herein were considered helpful in the land valuation analysis of the subject property. The purchase price per square foot of land area has been utilized herein as the primary indication of value due to the wide variation of developable densities among the sale properties. Following is a summary relating the overall comparability of the individual consummated sale properties employed in the subject land value analysis. Value Data Indication Per SF C lower range $29.84 F lower range $30.70 E slightly lower range $35.76 B slightly lower range $35.86 Subject - - - - $40.00 A slightly upper range $42.48 D upper range $48.25 After considering the various elements of comparability, as well as economic and financial conditions prevailing during the consummation of the various sale properties, when compared to current market conditions, it is the appraiser's opinion that the unencumbered fee simple market value of the subject site, as if vacant and available for a highest and best use development, is estimated at $40.00 per square foot of land area, as follows: 26,598 sf Q $40.00 = $1,063,920. Adjusted: $1,065,000. FINAL ESTIMATE OF MARKET VALUE: Based on the foregoing valuation study, the unencumbered fee simple market value of the subject property, as of the date of value employed herein, is estimated at $1,055,000. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 1s 20D-53 VALUATION ANALYSIS (Continued) EXPOSURE TIME: Exposure time is defined in the 2014-2015 Edition of the Uniform Standards of Professional Appraisal Practice as the "estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal." Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market. The reasonable exposure time is a function of price, time, and use, not an isolated opinion of time alone. The exposure time of a particular property is a direct function of supply and demand within a particular market segment. Generally, a higher demand results in a shorter marketing period. During the course of extensive market research, interviews were conducted of parties involved in the transactions regarding the sale properties employed in the Sales Comparison Approach. Based on said interviews, as well as interviews with a number of real estate brokers and other market participants, the exposure time estimated for the subject property, assuming an aggressive and comprehensive marketing program, is estimated at approximately six to nine months. LIDGARI) AND ASSOCIATES APPRAISERS -CONSULTANTS 16 20D-54 MARKET DATA SUMMARY RESIDENTIAL LAND VALUE INDICATORS: 'Inclusive of estimated demolition and clearing expenses. 'Property rezoned for development of multiple family housing. LIDGARD AND ASSOCIATES APPRAISERS -CONS UL"TANTS 1 20D-55 No. Dev. Data Oate Zoning Land Area nit I-ensity Sale PricePer SF A. 3-16 RM 36,138 sf 13 1/2,780 sf $1,535,000.' $42,48 W/S Newland St., 140' S/O Slater Ave., Huntington Beach B. 4-16 RH 18,125 sf 6 1/3,021 sf $ 650,000. $35.86 SWC Western Ave, and Rutledge Ave., Stanton C. 5-16 R-2 9,148 sf 2 1,4,574 sf $ 273,000. $29.84 SEC Cypress Ave. and Adams St., Santa Ana D. 9-16 C-12 19,688 sf '12 1/1,641 sf $ 950,000. $4825 W/S Hewes St., 113' S/O Chapman Ave„ Orange E. 2-17 RM 20,413 sf 5 1/4,083 sf $ 730,000. $35.76 N/S Kermore Ln., 172'W/0 Keenan PL, Stanton F. 7-17 R-2 20,196 sf 3 1/6,732 sf $ 620,000. $30.70 E/5 Bewley St., 80' N/O 1 VSt., Santa Ana 'Inclusive of estimated demolition and clearing expenses. 'Property rezoned for development of multiple family housing. LIDGARD AND ASSOCIATES APPRAISERS -CONS UL"TANTS 1 20D-55 LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 20D-56 MARKET DATA A vvesr siae or Newland Street, beginning 140 feet south of Slater Avenue, Huntington Beach. GRANTOR: Pacific Coast Comm. Church APN: 167-492-05,06 GRANTEE: Olson -Huntington Beach 3, LLC LAND SIZE: 36,138 sq.ft SALE DATE: March 29, 2016 ZONING: RM DOC. NO.: 130888 NO. UNITS: 13 SALE PRICE: $1,535,000, inclusive of demo-. DOC. STAMPS: $1,540.00 lition and clearing expenses. H & B USE: Residential PRESENT USE: Vacant land TERMS: All cash IMPROVEMENTS: Older bldgs. at time of sale. ENTITLEMENTS: None DEVEL. DENSITY: 1 unit/2,780 SF VALUE INDICATION: $42.48 per SF land. DATE INSPECTED: March 10, 2017 BY: Scott A. Lidgard, MAI LIDGAP,D AND ASSOCIATES A PPRA ISE RS -CONSULTANTS 20b-57 MARKET DATA A (Continued) 44 �uU b SLATER i. �y i i AVENJ/E 4 i I + TRA T -f _ JN x �, Q = Q TRACT i 1Q ® Q ii v r i ,..., a em ® O -Ala ar9,a F, IJ C i 3 © O i la o N i T •491 TRACT w �' v O� O i ON " x xl ..Jx N {i I ® w Q : ® 21 RR®i O P © @ N TRYnN.ery.Jx O Na 4682 t O LOT i ®. t 2 VERIFICATION: Document of public record and CoStar Comps. LIDOARD AND ASSOCIATES APPRAISERS -CONSULTANTS 3 20D-58 MARKET DATA B �.•-��. �� �W1 rvcolcl II f VWIIUU anu nuueuye revenue, aianion. Improvements in photograph contribute relatively nominal value in a highest and best use context. GRANTOR: Okada Revocable Trust APN: 131-641-08 GRANTEE: Martin & Carmen L. Leon LAND SIZE: 18,125 sq.ft. SALE DATE: April 15, 2016 ZONING: RH DOC. NO.: 165137 NO. UNITS: 6 SALE PRICE: $650,000. DOC. STAMPS: $715.00 H & B USE: Residential PRESENT USE: Residential TERMS: 25% cash down IMPROVEMENTS: Older imps. of ENTITLEMENTS: None VALUE INDICATION: DATE INSPECTED: March 10, 2017 nominal value. DEVEL. DENSITY: 1 unit/3,021 sf $35.86 per SF land. BY: Scott A. Lidgard, MAI 1.1 GARDANDASSOCIA'T'ES APPRAISE RS-CONSU LI'ANTS n 20D-59 MARKET DATA B (Continued) R C. A� <W eue TRACT ♦1 � 4�, y✓ A yy nv b gismol)Q F+� TRACT J W W o c ✓ ✓ . O I \ ✓ Yhtt >48E 1 63 C7 VERIFICATION- Document of public record, Costar Comps, and Jesse James, broker representing grantor. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS El 20D-60 MARKET DATA C Southeast corner of Cypress Avenue and Adams Street, Santa Ana. GRANTOR: PM Investment Groups, Inc. APN: GRANTEE: Mira Properties, LLC LAND SIZE: SALE DATE: Mary 23, 2016 ZONING: DOC. NO.: 230237 NO. UNITS: SALE PRICE: H&BUSE: TERMS: $273,000. Residential All cash ENTITLEMENTS: None VALUE INDICATION: DOC. STAMPS: PRESENT USE: 016-044-12 8,801 sci t. R-2 `IA $300.30 Vacant land IMPROVEMENTS: None at time of sale DEVEL. DENSITY: 1 unit/4,401 sf $31.02 per SF land. DATE INSPECTED: September 23, 2016 BY: Scott A. Lidgard, MAI LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 6 20D-61 MARKET DATA C (Continued) l 03 L AWS I N VERIFICATION: Document of public record, Multiple Listing Service, and Henry Mai, agent representing grantee. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 7 20D-62 V�j ytD �I .���� N VERIFICATION: Document of public record, Multiple Listing Service, and Henry Mai, agent representing grantee. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 7 20D-62 MARKET DATA D West side of Hewes Street, beginning 113 feet south of Chapman Avenue, Orange. Improvements in photograph constructed subsequent to the sale. GRANTOR: SMRS Properties, LLC APN: 392-181-21 GRANTEE: Encore -Hewes, LLC LAND SIZE: 19,688 sq.ft. SALE DATE: September 9, 2016 ZONING: C-1 DOC. NO.: 434671 NO. UNITS: 12 SALE PRICE: $950,000. DOC. STAMPS: $1,045.00 H & B USE: Residential TERMS: All cash ENTITLEMENTS: Yes VALUE INDICATION: DATE INSPECTED: March 10, 2017 PRESENT USE: Res. Bevel. under const. IMPROVEMENTS: None at time of sale DEVEL. DENSITY: 1 unit/1,641 sf $48.25 per SF land. BY: Scott A. Lidgard, MAI LIDGARD AN][) ASSOCIATES APPRAISERS -CONSULTANTS a 20D-63 MARKET DATA D (Continued) t r -a BPWES -, PAe , 'I sABCBAB raa.`w awon ——sYBeer , —� S Y on on o 'I sABCBAB raa.`w awon ——sYBeer , —� -, i Srx 1 9 v' VERIFICATION: Document of public record, Multiple Listing Service, and Roger Niez, agent representing grantor. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 9 20D-64 S -, i Srx 1 9 v' VERIFICATION: Document of public record, Multiple Listing Service, and Roger Niez, agent representing grantor. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 9 20D-64 MARKET DATA E 1. Improvements in photograph contribute relatively nominal value in a highest and best use context. GRANTOR: Soon Kap Hahn APN: 079-751-08 GRANTEE: Gerhardt B. Schupmann LAND SIZE: 20,413 sq.ft. SALE DATE: February 16, 2017 NO. UNITS: 5 DOC. NO.: 104394 CORNER: No SALE PRICE: $730,000. DOC. STAMPS: $803.00 H & B USE: Residential PRESENT USE: Residential use TERMS: All cash IMPROVEMENTS: Older imps. at time of sale. ENTITLEMENTS: None DEVEL. DENSITY: 1 unit/4,083 sf VALUE INDICATION: $35.76 per SF land. DATE INSPECTED: March 10, 2017 BY: Scott A. Lidgard, MAI, CCIM LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 10 20D-65 MARKET DATA E (Continued) JRACr u TRACT s rr .O r ®. 75 `•'wl.' Iii '. Qi n. muvr eQQ I I © f � I I I 6D.i 413 I ------ - _______ O O O ;O i1 751 ® II O I NEENAN i NO. /7631 11769 ? Y9 AF.91W.9E r. .1 CANE $r I y O O O TRACT .O ®. 75 `•'wl.' Iii '. Qi n. muvr eQQ I I © f � I I I 6D.i 413 ws NO. /7631 VERIFICATION: Document of public record, Multiple Listing Service, and Paul Kubisen, agent representing grantor. 11 GARDANDASSOCIATES APP RA f S£RS-CONSULTANTS .y 20D-66 MARKET DATA F GRANTOR: GRANTEE: SALE DATE: DOC. NO.: SALE PRICE: H & B USE: TERMS: John T. Robertson APN: John Le & Teresa Huynh LAND SIZE: July 14, 2017 NO. UNITS: 289728 CORNER: $620,000. DOC. STAMPS: Residential PRESENT USE: 198-102-20 20,196 sq.ft. 3 No $682.00 Vacant land All cash IMPROVEMENTS: None at time of sale. ENTITLEMENTS: None DEVEL. DENSITY: 1 unit/6,732 sf VALUE INDICATION: $30.70 per SF land. DATE INSPECTED: October 12, 2017 BY: Scott A. Lidgard, MAI, CCIM LIDGARD AN D ASSOCIATES AYYRAISF RS -CONSULTANTS 201b-67 MARKET DATA F (Continued) x wAavewrtw rvacr ` n l02 � O © 1 i x 0 i nwxx a o 0 0 I 'Q' t• Q' Qi O x ` n l02 rmxrO• O � x Q 703 �lfNCRN' Mr Q 4:7 Q r VERIFICATION: Document of public record, Multiple Listing Service, and Audrey Savopolos, agent representing grantor. LIDOA ,D AND ASSOCIATES APPRAISERS-CONSUUTANT 13 20D-68 See Photo No. 1 on first page of Subject Property Section. property from the intersection of Washington Avenue and Penn Way. property from Washington Avenue. LIDGA-DANDASSOCIATES APPRAISERS -CONSULTANTS 20D-69 PHOTO NO. 3: View looking southwesterly at the subject property from Penn Way. LIDOARD AND ASSOCIATES A PPRA ISF.RS-CONSULTANTS 20D-70 Avenue from the intersection of Penn Way. subject property at left -center of photo- graph. LIDGA ,D AND ASSOCIATES APPRAISERS-CONSU CCA NTS 20D-71 from the intersection of Washington Street. Way; subject photograph. property at right -center of LID GARDANDASSOCIATES A P PRAISERS -CONSULTANTS 20D-72 20D-73 Scott A. Lidgard, MAI, CCIM President of LIDGARD AND ASSOCIATES INCORPORATED Full service appraisal firm encompassing all types of real property including commercial, industrial, complex residential, and special use properties. Scott A. Lidgard has over 30 years' experience in the appraisal of real property for various clients including public agencies, corporations, law firms in connection with litigation support, accountants, and private clients. OFFICE ORGANIZATIONAL STRUCTURE: Principal Appraiser: Market Research Analysi: Market Research Analyst: Market Research Analyst: Market Research Assistant: Office Administrator: Office Assistant: Scott A. Lidgard Jason T. Clayton Jason P. Boyer Andrew S. Lidgard Mayra Villegas-Garcia Sarah A. Petty Kelly M. Lidgard PROFESSIONAL ORGANIZATION AFFILIATIONS: MAI Designated Member of the Appraisal Institute (Member No. 11715). CCIM (Certified Commercial Investment Member) designated member of the CCIM Institute (Member No. 11262). STATE CERTIFICATION' Certified General Real Estate Appraiser by the Office of Real Estate Appraisers, State of California. Certificate No. AG004014. BROKER'S LICENSE: Licensed California Real Estate Broker (License No. 00825141). EXPERT WITNESS: Qualified as an expert on Real Property Valuation in the Los Angeles, Orange, San Bernardino, and Riverside County Superior Courts, as well as Federal Bankruptcy Court. LIDGARD ANDASSOCIATES A PP RAIS ERS -CONSULTANTS 20D-74 BACKGROUND AND QUALIFICATIONS (Continued) California State University, Fullerton B.A., Business Administration, emphasis in real estate finance. Successfu8y completed various educational courses and seminars sponsored by the Appraisal Institute, as well as other real estate and business organizations. BUSINESS AFFILIATIONS: Appraisal Experience: President, Lidgard and Associates, Inc., Orange, California, established October 1, 1997. Vice President, R. P. Laurain & Associates, Inc., Long Beach, California, between 1984 and 1997. Real Estate Sales Associate, Merrill Lynch Realty, Placentia, California, between 1982 and 1984. Sergeant at Arms, Long Beach Rotary President, Belmont Estates HOA, Orange Vice President, Canyon Rim Villas HOA, Anaheim Hills Treasurer, Orchard Owner's Association, Orange Board of Directors, Villa Heights HOA, Villa Park I q4;1 4 ill Real estate appraisal services performed on projects for the following public agencies and private corporations, since 1984: Cities: City of Anaheim City of Azusa City of Baldwin Park City of Bell City of Bellflower City of Bell Gardens City of Brea City of Carson City of Cathedral City City of Costa Mesa City of Diamond Bar City of Downey City of Fullerton City of Garden Grove City of Glendora City of Hawaiian Gardens City of Highland City of Huntington Park City of Indio City of Irvine City of La Mirada City of La Habra City of La Quinta City of Laguna Hills City of Long Beach City of Lynwood City of Mission Viejo City of Montclair City of Monterey Park City of Murrieta City of Ontario City of Palm Desert City of Palm Springs City of Pasadena City of Pico Rivera City of Placentia City of Pomona City of Rancho Mirage City of Redondo Beach LID GARDANDASSOCIATES AP P R A IS E RS -CONSULTANTS 20D-75 BACKGROUND AND QUALIFICATIONS (Continued) APPRAISAL SERVICES RENDERED (Continued) Cities: (Continued) City of Rialto City of Santa Ana City of Upland City of Riverside City of Santa Clarita City of Whittier City of San Clemente City of Signal Hill City of West Covina City of San Bernardino City of Stanton City of Yorba Linda City of San Juan Capistrano City of Tustin City of Victorville Redevelopment Agencies: Baldwin Park Redevelopment Agency Bell Redevelopment Agency Bell Gardens Redevelopment Agency Buena Park Redevelopment Agency Carson Redevelopment Agency Cathedral City Redevelopment Agency EI Monte Redevelopment Agency Garden Grove Redevelopment Agency Glendale Redevelopment Agency Huntington Beach Redevelopment Agency Huntington Park Redevelopment Agency Inglewood Redevelopment Agency La Puente Redevelopment Agency Long Beach Redevelopment Agency Los Angeles Community Redevelopment Agency Norwalk Redevelopment Agency Ontario Redevelopment Agency Palm Desert Redevelopment Agency Rialto Redevelopment Agency Riverside Redevelopment Agency San Bernardino Redevelopment Agency Signal Hill Redevelopment Agency West Covina Community Development Commission Whittier Redevelopment Agency Yorba Linda Redevelopment Agency Other Government Agencies: Calleguas Municipal Water District County of Los Angeles, Internal Services Division County of Riverside Inland Empire Utilities Agency Long Beach Unified School District Los Angeles County Sanitation District Los Angeles Unified School District Orange County Transportation Authority Palm Springs Unified School District LIDO' ARD AND ASSOCIATES APPRAISERS -CONSULTANTS 20D-76 BACKGROUND AND QUALIFICATIONS (Continued) APPRAISAL SERVICES RENDERED (Continued) Other Government Agencies: (Continued) Placentia Unified School District Port of Long Beach Port of Los Angeles Resolution Trust Corporation Riverside County Transportation Commission State of California U. S. Department of Navy U. S. Marshal Service Victor Valley Wastewater Reclamation Authority Financial Institutions: American First Federal Credit Union Farmers and Merchants Bank First Federal Bank First Federal Credit Union Fiscal Federal Credit Union Harbor Bank Long Beach Bank Mineral King National Bank Northern Trust Bank Queen City Bank Sumitomo Bank, Ltd. Union Bank Asset Management Companies: Amresco, Inc. American Residential Mortgage Corporation BEI Management, Inc. Emerson International Equitable Real Estate Investment Management EQ Services Icon Associates Independence One Pacific Southwest Partners Private Companies/Corporations: Allstate Insurance Company Best, Best & Krieger, LLP Bonnie, Hopkins & Bastardi, LLP Bridgestone/Firestone, Inc. Black & Vetch Corporation Buchalter Nemer, A Professional Corporation Burke, Williams & Sorenson, LLP California Eminent Domain Law Group LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 20D-77 BACKGROUND AND QUALIFICATIONS (Continued) APPRAISAL SERVICES RENDERED (Continued) Private Companies/Corporations: (Continued) Carl Karcher Enterprises Chapman University Century Law Group Daley & Heft, LLP Eastman Kodak Company Ferro Corporation Flagstar Companies Guild Financial Hahn & Hahn, LLP Harbor Chevrolet Inland Partners Corporation Kaufman and Broad Latham & Watkins, Attorneys at Law Long Beach Memorial Medical Center Madden, Jones, Cole & Johnson, Attorneys at Law Oliver, Vose, Sandifer, Murphy & Lee Pan Pacific Development Rutan & Tucker, LLP Scotsdale Insurance Snell & Wilmer, Attorneys at Law T.R.W. The Trust for Public Land Westport Packers Windes and McClaughry, Accountancy Corporation Wise, Wiezorek, Timmons & Wise, Attorneys at Law LIDGARDANDASSOCIATES APPRAISERS -CONSULTANTS 20D-78 PURCHASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY AND BILATERAL ESCROW INSTRUCTIONS THIS AGREEMENT (hereinafter "PSA"), entered into on , 2018, between the CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California (hereinafter "City" or "Buyer"), and, Pacific.Legacy�Real Estate and Investments Inc. a California Corporation (hereinafter "Seller"), regardless of number or gender; THEREFORE, for and in consideration of their mutual promises, covenants and agreements, and subject to the terms, conditions and provisions of this PSA, Seller agrees to sell to City, and City agrees to purchase from Seller, that certain real property (hereinafter "Said Real Property") legally described as follows: SEE EXHIBIT "A" —Legal Description ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF (Commonly known as 651-657 East Washington Avenue, Santa Ana CA) (APN: 398-152-16 & 398-150-02,) Said purchase and sale of Said Real Property shall be in accordance with and subject to all of the following terms, conditions, promises, covenants, agreements and provisions, to wit: 1. Conveyance by Seller. Seller agrees to convey said real property to City, by Grant Deed, at the office of Commonwealth Title Company at 4100 Newport Place Dr. Suite 120 Newport Beach, California, within sixty (60) days from and after the date on which the City has approved this Agreement. 2. Title to be Conveyed. Seller agrees that, except as may hereinafter be otherwise expressly provided, said real property shall be conveyed by Seller to City, as aforesaid, free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non -monetary, general or specific, including any and all leasehold Interests), liens, clouds or defects in title except those exceptions shown in Paragraph 14 below. Seller hereby warrants that the title to said real property to be conveyed by Seller to City shall be free and clear as provided above. Seller further agrees that acceptance by City of any deed to said real property, with or without knowledge of any condition, restriction, reservation, exception, easement, assessment, profit, limitation, encumbrance (whether monetary or non -monetary, general or specific, and including any and all leasehold interests), lien, cloud or defect in title, shall not constitute a waiver by City of its right to the full and clear title hereinabove agreed to be conveyed by Seller to City, nor of any right which might accrue to City because of the failure of Seller to convey title as hereinabove provided. 3. Title Insurance. Seller agrees to deliver to City, concurrently with the conveyance of said real property to City, within the time and at the place hereinabove specified for said conveyance of said real property, a policy of title insurance to be issued by the above mentioned title company, with the City therein named as the insured, in the amount of One Million Sixty Five Thousand Dollars ($1;065;000.00) insuring the title of the City to said real property is free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non - monetary, general or specific, and including any and all leasehold interests), liens, clouds or defects in title, excepting such specific ones as city may hereinafter expressly agree to take subject to. Acceptance by City of any such policy of insurance, whether such insurance complies with the requirements of this paragraph or not, shall not constitute a waiver by City of its right to such insurance as is herein required of Seller, nor a waiver by the City of any rights of action for damages or any other rights which may accrue to City by reason of the failure of Seller to convey title or to provide title insurance as required in this Agreement. Exhibit 3 20D-79 4. Escrow. City agrees to open an escrow at the office of Commonwealth Title Company at 4100 Newport Place Dr. Suite 120 Newport Beach, California, (the Escrow Agent) within five (5) days from and after the date on which the City has approved this Agreement. This Agreement constitutes the joint escrow instructions of the City and the Seller and a duplicate original of this Agreement shall be delivered to the Escrow Agent upon the opening of the escrow. Escrow to close within sixty (60) days of the City's execution of this Agreement. If escrow is not in a condition to close by the Close of Escrow, and failure to close is due to unforeseen conditions of title or interest of third parties In the Property that cannot be resolved In Escrow, then buyer may, at its option, request cancellation of escrow and this Agreement and return of any funds it has deposited into escrow. Thereupon, all obligations and liabilities of the Parties under this Agreement shall cease and terminate. If no such request is made, Escrow shall be closed as soon as possible thereafter. Buyer shall be entitled to possession of the Property immediately upon close of Escrow. The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance of this Section 4 and of the General Provisions described in Exhibit "B" attached hereto and incorporated herein by this reference, in writing, delivered to the City and to the Seller within five (5) days after delivery of this Agreement, shall carry out its duties as Escrow Agent hereunder. City and Seller agree to split and Escrow Agent is hereby authorized to charge to the City and Buyer the cost of any transfer taxes, recording fees, cost of title insurance, re -conveyance fees, document preparation fees, escrow fees and any other closing costs incidental to the conveying of said real property to City. Penalties for prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedures Section 1265.240, The liability to the Escrow Agent under this Agreement is limited to performance of the obligations Imposed upon It under Section 4, Section 6, and Exhibit "B" of the General Provisions of this Agreement, 5. Property Taxes. Such real property taxes, if any, on said real property for the fiscal year within which said real property is conveyed to City as are unpaid at the time of said conveyance shall be cleared and paid in accordance with the provisions of Section 4986 of the Revenue and Taxation Code of the State of California. Seller shall be eligible for a refund under Section 5096.7 of the Revenue and Taxation Code of the State of California for that portion of property taxes on said real property for said fiscal year which have been paid prior to the date the deed conveying said real property to City is recorded which is allocable to that portion of the fiscal year which begins on the date the deed conveying said real property to City Is recorded and made uncollectible if unpaid by reason of Section 5086 of the Revenue and Taxation Code of the State of California. To the extent that Seller has prepaid any taxes or assessments attributable to the Property; Seller shall be solely responsible for obtaining any refund due thereon from the taxing authority. Upon written request, Buyer shall assist Seller, at Seller's sole cost, in obtaining said refund, if any; however, in no case shall Buyer credit or otherwise pay Seller for that refund, If any, through or outside of Escrow. All unpaid taxes on said real property for any and all years prior to the fiscal year within which said conveyance is made shall be paid by Seller before conveyance of said real property to City. 6. Payment of Purchase Price, City agrees to pay to Seller, and Seller agrees to accept from City, as and for the full purchase price for said real property, severance damages, and Seller's financing costs of $18,750 for five months from October 2017 to February; 2018 for the total sum of One Million Eighty Three Thousand Seven Hundred Fifty Dollars ($1;083,750:00). City agrees to deposit said purchase price in escrow with the Escrow Agent within thirty (30) days from and after the date on which the City has approved this Agreement, and the Escrow Agent is hereby authorized to pay the same to Seller upon and after: (a) Conveyance of said real property by Seller to City as hereinabove provided; (b) Acceptance by City of a Grant Deed conveying said real property to City; (c) Delivery to City of the policy of title insurance as hereinabove provided; r, Kli oo (d) Recordation of the Deed conveying said real property to City. 7, Possession. Seller agrees to deliver to City, on the date the Deed conveying said real property to City is recorded, quiet and peaceful possession of said real property, which shall be made free by Seller of all personal property, a. No later than three (3) days after close of escrow, Seller shall have removed all merchandise, inventory, equipment, personal property, and/or removable trade fixtures from the Property, and shall leave the Property in a broom swept condition. Any merchandise, inventory, equipment, personal property, and/or removable trade fixtures at the Property as of three days after close of escrow shall be deemed abandoned by Seller on that date, unless a prior written agreement has been made with the City or its representatives. 81 Waivers. The waiver by City of any breach of any covenant or agreement herein contained on the part of the Seller shall not be deemed or held to be a waiver of any subsequent or other breach of said covenant or agreement nor a waiver of any breach of any other covenants or agreements contained herein. 9, Heirs, Assigns, Successors -in -Interest,. This PSA, and all the terms, covenants and conditions hereof, shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective Parties hereto. 10, Time is of the Essence, In all matters and things hereunder to be done and In all payments hereunder to be made, time is and shall be of the essence. 11. Acknowledgement of Full Benefits and Release. By execution of this Agreement, Seller hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer, and Seller hereby expressly and unconditionally waives any claim for damages, interest, loss of goodwill, severance damages, or any other compensation or benefits other than as already expressly provided for In this Agreement, It being understood that this Is a complete and full settlement of all acquisition claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Property. 12. Notices, The mailing address of the City of Santa Ana Is 20 Civic Center Plaza, M-36, P.O. Box 1988, in the City of Santa Ana 92701, County of Orange, State of California. The mailing address of the Seller is 17853 Santiago Blvd. # 107-484, Villa Park CA 92861. 13. Exceptions, City agrees to accept title to said real property subject to the following: NONE. 14, Entire Agreement. It is mutually agreed that the Parties hereto have herein set forth the whole of their Agreement. Performance of this PSA by City shall lay at rest, each, every, and all issue(s) that were raised or could have been raised in connection with the acquisition of Said Real Property by City. 15, Hazardous Waste. Neither Seller nor, to the best of Seller's knowledge, any previous owner, tenant, occupant, or user of the Property used, generated, released, discharged, stored, or disposed of any hazardous waste, toxic substances, or related materials ("Hazardous Materials") on, under, in, or about the Property, or transported any Hazardous Materials to or from the Property. Seller shall not cause or permit the presence, use, generation, release, discharge, storage, or disposal of any Hazardous Materials on, under, in, or about, or the transportation of any Hazardous Materials to or from, the Property. The term "Hazardous Material" shall mean any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste", "extremely hazardous waste", or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as "hazardous substance" under Section 25316 of the California Health and Safety Code, Division w 20D-81 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act), (Iii) defined as a "hazardous material", "hazardous substance", or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6,7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as a "hazardous substances" pursuant to Section 311 of the Clean Water Act, (33 U.S.C. 51317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. 56901 at sem. (42 U.S.C. 56903) or (A) defined as a "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, as amended by Liability Act, 42. U.S,C. 59601 et seg. (42 U.S.C. S9601), 16, Compliance With Environmental Laws. To the best of Seller's knowledge the Property complies with all applicable laws and governmental regulations including, without limitation, all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental matters, Including, but not limited to, the Clean Water, Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and Liability Acts, and the California Environment Quality Act, and the rules, regulations, and ordinances of the city within which the subject property Is located, the California Department of Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all applicable federal, state, and local agencies and bureaus. 17. Indemnity, Seller agrees to indemnify, defend and hold the City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (i) the presence, release, use, generation, discharge, storage, or disposal of any Hazardous Material on, under, in or about, or the transportation of any such materials to or from, the Property, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment, or license relating to the use, generation, release, discharge, storage, disposal, or transportation of Hazardous Materials on, under, in, or about, to or from, the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, punitive damage, cost, or expense arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease, or death, tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, pollution, contamination, leak, spill, release, or other adverse effect on the environment). This Indemnity extends only to liability created prior to or up to the date this escrow shall close. Seller shall not be responsible for acts or omissions to act post close of this escrow. 18. Contingency. It is understood and agreed between the parties hereto that the completion of this transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the City herein, The execution of these documents and the delivery of same to Escrow Agent constitute said acceptance and approval. 19. Modification and Amendment. This PSA may not be modified or amended except In writing signed by the Seller and City. 20. Partial Invalidity. Any provision of this PSA that is unenforceable or Invalid or the conclusion of which would adversely affect the validity, legality, or enforcement of this PSA shall have no effect, but all the remaining provisions of this PSA shall remain in full force. 21. Captions. Captions and headings in this PSA, including the title of this PSA, are for convenience only and are not to be considered in construing this PSA. 22. Governing Law. This PSA shall be governed by and construed in accordance with the laws of the State of California. 20D-82 28, No Reliance By One Party On The Other. Each party has received independent legal advice from its attorneys with respect to the advisability of executing this PSA and the meaning of the provisions hereof. The provisions of this PSA shall be construed as to their fair meaning, and not for or against any party based upon any attribution to such party as the source of the language in question, 24. No Third Party Beneficiary. This PSA is intended to benefit only the Parties hereto and no other person or entity has or shall acquire any rights hereunder. 25. Duty To Cooperate Further. Each party hereby agrees that it shall, upon request of the other, execute and deliver such further documents (in form and substance reasonably acceptable to the party to be charged) and do such other acts and things as are reasonably necessary and appropriate to effectuate the terms and conditions of this PSA, without cost. 26. Applicability of Agreement To Assignees, This PSA shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties to this PSA. 27. Authority to Execute Agreament. Each undersigned represents and warrants that Its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this PSA, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, In fact, held by the signatory or is withdrawn, 28, Incorporation of Exhibits, All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this PSA. IN WITNESS WHEREOF, the Parties hereto have executed this PSA on the date and year first written above, SELLER: Pacific Legacy Real Estate and Investments Inc, a California Corporation By:: Its: CITY/BUYER City of Santa Ana Raul Godinez II City Manager ATTEST: Maria D. Huizar City Clerk Date: 1 ec to 26� Date: .2018 Date: __ _ 2018 20D-83 APPROVED AS TO FORM: I �VrVw�� Jo M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL Fred Mousavipour Executive Director Public Works Agency Date: 2018 EXHIBIT "A" LEGAL DESRIPTION ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS; PARCEL 1: THAT PORTION OF THOSE LANDS DESCRIBED IN A FINAL ORDER OF CONDEMNATION (ORANGE COUNTY SUPERIOR COURT CASE NO. 689625) TO THE STATE OF CALIFORNIA, RECORDED NOVEMBER 12, 1997 AS INSTRUMENT NO. 1997-576612 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA, LYING SOUTHWESTERLY AND NORTHWESTERLY OF THE FOLLOWING DESCRIBED LINE: BEGINNING AT A POINT ON THE NORTHEASTERLY RIGHT-OF-WAY OF THE SOUTHERN PACIFIC RAILROAD (100.00 FEET WIDE) SAID RIGHT-OF-WAY IS SHOWN ON RECORD OF SURVEY NO, 88- 1045, FILED IN BOOK 121, PAGE(S) 10THROUGH 12 OF RECORDS OF SURVEY IN SAID OFFICE, SAID POINT DISTANT THEREON NORTH 26'28'39" WEST, 127.61 FEET FROM THE SOUTHWESTERLY COMER OF THE LANDS DESCRIBED IN SAID FINAL ORDER OF CONDEMNATION AND SAID POINT ALSO BEING A CUSP OF A CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS O F 417.60 FEET (A RADIAL LINE THROUGH SAID POINT OF CUSP BEARS SOUTH 28° 59'34" WEST); THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 090 15'01" AN ARC DISTANCE OF 67.42 FEET; THENCE SOUTH 70° 16'27" EAST, 22.14 FEET TO THE BEGINNING OF A CURVE CONCAVE OUTHWESTERLY AND HAVING A RADIUS OF 196.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 200 12'39" AN ARC DISTANCE OF 6914 FEET; THENCE SOUTH 20° 19' 30"WEST 49.85 FEET TO THE SOUTHERLY LINE OF THE LANDS DESCRIBED IN SAID FINAL ORDER OF CONDEMNATION, PARCEL2: THAT PORTION .OFA 100.00 FOOT WIDE STRIP OF LAND SHOWN ON RECORD OF SURVEY NO. 88- 1045 RECORDED IN BOOK 121, PAGE(S) 10 THROUGH 12, INCLUSIVE OF RECORDS OF SURVEY IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA AND FURTHER DESCRIBED AS A PORTION OF PARCEL "B" IN A GRANT DEED TO THE STATE OF CALIFORNIA RECORDED MAY 5, 2002 AS INSTRUMENT NO. 2002-0432665 OF OFFICIAL RECORDS IN SAID OFFICE, LYING WESTERLY, SOUTHWESTERLY AND SOUTHERLY OF THE SOUTHWESTERLY LINE OF RE -ALIGNED PENN WAY, AS SHOWN ON RECORD OF SURVEY NO, 2002-1059, RECORDED IN BOOK 194, PAGE(S) 28 THROUGH 36 OF RECORDS OF SURVEY IN SAID OFFICE. Assessor's Parcel Numbers: 398-150-02 & 398-152-16 20D-85 EXHIBIT "B" (Commonwealth Land Title Company) GENERAL. ESCROW PROVISIONS All disbursements shall be made by Escrow's check. All funds received in this escrow shall be deposited in one or more of your general escrow accounts with any bank doing business in the State of California and may be transferred to any other general escrow account or accounts. The expression "close of escrow" means the date on which instruments referred to herein are filed for record. All adjustments are to be made on the basis of a 30 -day month. Recordation of any instruments delivered through this escrow, if necessary or proper In the Issuance of a policy of title insurance called for, Is hereby authorized. There shall be no proration of any existing insurance policies in this escrow. You are to furnish a copy of these Instructions, amendments thereto, closing statements and/or any other documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the attorney or attorneys involved in this transaction upon request of such lenders, brokers or attorneys, Should you before or after close of escrow receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict is resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the determination of such conflict, The parties hereto jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorney's fees, suffered or incurred by you In connection with, or arising out of this escrow, including, but without limiting the generality of the foregoing, a suit in interpleader brought by you. In the event you file a suit In interpleader, you shall ipso facto be fully released and discharged from all obligations imposed upon you in this escrow. If for any reason funds are retained or remain In escrow, you are to deduct therefrom a reasonable monthly charge as custodian thereof of not less than $10.00 per month, Time is declared to be the essence of these instructions. If you are unable to comply within the time specified herein and such additional time as is required to make an examination of the official records, you will return all documents, money or property to the party entitled thereto upon satisfactory written demand and authorization. Any amendment of and/or supplement to any instructions must be In writing, The seller agrees to sell and the buyer agrees to buy the property herein described upon the terms hereof. These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which independently shall have the same effect as If it were the original, and all of which taken together shall constitute one and the same Instruction. 20D-86 When recorded, please mail this instrument and tax statements to: Cleric of the Council City of Santa Ana 20 Civic Center Plaza, M-30 Santa Ana, California 92701 Free recording requested by THE CITY OF BANTA ANA PER GOVERNMENT CODE SECTION 6103. SPACE ABOVE TIES LINE FOR RECORDER'S USE CANCEL TAXES B APPROVED AS TO FORM BY ATTY. APPROVED BY DIRECDOR DESCRIPTION WRITTEN EY DESCRIPTIONA.P, CHECKED-Od(. NUMBER: 198-150-12& 195.152.16 PROIECT NUMBER GS 1-fiS7 8 Washington Avenue, Sante Ana, CA 92703 DEED NUMBER GRANTDEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Pacific Legacy Real Estate & Investments Inc. a California Corporation Do Hereby Grant to the CITY OF SANTA ANA, a charter City and municipal corporation duly organized under the Constitution and laws of the State of California, for public roadway purposes, all that real property In the City of Santa Ana, Orange County, State of California, located at 651-657 East Washington Avenue, Santa Ana, CA 92703,described as follows: SEE EXHIBIT "A" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF; Pacific Legacy Real Estate & Investments Inc. a California Corporation. 0 Its: 20D-87 rlf ::