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HomeMy WebLinkAboutRes 2015-93 - Alessandro West Imprvmnt - APN 627-071-013CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: ADOPTION OF RESOLUTION NO. 2015-93 FINDING AND DETERMINING THE PUBLIC INTEREST AND NECESSITY FOR ACQUIRING AND AUTHORIZING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED ALONG THE SOUTH SIDE OF SAN ANTONIO CIRCLE, EAST OF MONTEREY AVENUE, IN PALM DESERT, CALIFORNIA, OTHERWISE KNOWN AS A PORTION OF APN 627-071-013, FOR THE ALESSANDRO WEST PROJECT SUBMITTED BY: Martin Alvarez, Director of Economic Development DATE: November 12, 2015 CONTENTS: Resolution No. 2015-93 Letter to Owners RE Notice of Hearing Letter to Owners RE Offer to Purchase Appraisal Preliminary Title Report Recommendation: Adopt Resolution No. 2015-93 ("Resolution") finding that the public interest and necessity require the acquisition of a portion of real property in fee simple interest located along the south side of San Antonio Circle, east of Monterey Avenue, in Palm Desert, California, Riverside County, otherwise known as a portion of Assessor's Parcel Number ("APN") 627- 071-013 ("Subject Property"), for the proposed construction of road improvements along the south side of San Antonio Circle in Alessandro West ("Project"). Executive Summary: Approval of the Resolution will permit the City of Palm Desert ("City") to commence an eminent domain action against the owners of the Subject Property to acquire the interest needed for the Project. Background: In order to accommodate the Project as proposed, Staff has undertaken the preliminary investigations required to identify and attempt to acquire property to accommodate the Project. Pursuant to applicable law, the City had the property interest it proposes to acquire appraised. The appraisal resulted in an offer letter being sent to the owners of the Subject Property pursuant to Government Code section 7267.2. Staff Report Acquire Property for Alessandro West Project November 12, 2015 Page 2 of 3 Staff has attempted to undertake negotiations with the owners of the Subject Property, but to date has not been able to secure any agreement for the transfer of the Subject Property by way of negotiated agreement. Staff will continue to pursue discussions with the owners, regardless of the City Council's action with respect to the proposed Resolution, in an attempt to reach mutually agreeable terms for such a negotiated transfer. Discussion: The proposed Resolution is a resolution of necessity under California Code of Civil Procedure sections 1245.210, et seq. Such a resolution must be considered, and approved, by the legislative body prior to any exercise of eminent domain to acquire property. The proposed Resolution must be passed by a two-thirds majority, or four affirmative votes, of the members of the City Council. The California Eminent Domain Law provides the findings that must be made in a resolution of necessity. These are: 1. That the public interest and necessity require the project for which the property is proposed to be acquired; 2. That the project is planned in a manner that will create the greatest public good and the least private injury; 3. That the property proposed to be acquired is necessary for the project; and 4. That the offer required by Government Code section 7267.2 has been made to the owners of record. In addition, the City Council is being asked to make the finding that the City has met all other procedural prerequisites to the exercise of eminent domain on the Subject Property, including a determination that the Project was reviewed under applicable environmental review procedures. The amount of compensation due for the property interests involved is not a subject of the resolution of necessity, and therefore not before the City Council as an issue to be considered as part of this Resolution. The owners of the Subject Property, and/or their representatives, have a right to appear and be heard on the matters encompassed within the Resolution affecting their property. As required by the California Eminent Domain Law, the owners of the Subject Property were given notice of the City's consideration of the Resolution, and notified of their opportunity to appear and be heard on whether the City has undertaken all required steps and met all procedural prerequisites to the exercise of eminent domain to acquire the property interests proposed to be taken. As of the date of writing this report, the owners of the Subject Property have not contacted the City to inform it that they desire to be heard at the hearing. The facts supporting the various findings included within the resolution of necessity are recited in more detail in the text of the proposed Resolution itself. The Alessandro West corridor runs behind the commercial area on the north side of Highway 111 from Las Staff Report Acquire Property for Alessandro West Project November 12, 2015 Page 3 of 3 Palmas Avenue to approximately 300 feet east of Monterey Avenue. Generally, the public interest and necessity require the Project, in that the Project is designed to improve the lack of parking spaces and access which have adversely impacted the business area and limited further development. The Project is located in a manner most compatible with the greatest public good and least private injury, in that it will widen and improve a public street. The City Council has the option of either passing, or refusing to pass, the proposed Resolution. If the Resolution is passed, Staff will proceed to commence eminent domain proceedings, which ultimately would lead to a determination of the fair market value of the property interests proposed to be taken through court proceedings. If the City Council does not pass the Resolution, the City can either (i) commit to acquiring the Subject Property from the owners only by negotiated acquisition; (ii) decide not to implement the Project; or (iii) provide alternative direction to Staff. Based on all the foregoing, and on the matters recited in more detail in the Resolution itself, Staff requests that the City Council adopt Resolution No. Fiscal Impact: There is no fiscal impact associated with the recommended action. Environmental Review: The feasibility of the Project was studied and approved in 2004, and no additional environmental review is required. Submitted By: Martin Alvarez Director of Economic Development Approval: �'6 pohn M. Wohlmuth City Manager Department Head: Rudy Acosta Assistant City Manager RESOLUTION NO. 2015-93 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT FINDING AND DETERMINING THE PUBLIC INTEREST AND NECESSITY FOR ACQUIRING AND AUTHORIZING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED ALONG THE SOUTH SIDE OF SAN ANTONIO CIRCLE, EAST OF MONTEREY AVENUE, IN PALM DESERT, CALIFORNIA, OTHERWISE KNOWN AS A PORTION OF APN 627-071-013, FOR THE ALESSANDRO WEST PROJECT WHEREAS, the City of Palm Desert ("City") proposes to acquire a fee simple interest in certain real property located along the south side of San Antonio Circle, east of Monterey Aveue, in the City of Palm Desert, California, County of Riverside, otherwise known as a portion of Assessor's Parcel Number ("APN") 627-071-013 (hereafter, "Subject Property"), for the purpose of constructing road improvements along the south side of San Antonio Circle in Alessandro West ("Project"), pursuant to the authority granted to the City by Government Code section 37350.5 and Code of Civil Procedure sections 1240.040, 1240.110, and 1240.120; and WHEREAS, pursuant to Code of Civil Procedure section 1245.235, the City scheduled a public hearing for November 12, 2015 at 4:00 p.m. at the City Council chambers located at City Hall, 73-510 Fred Waring Drive, Palm Desert, California 92260, and gave to each person whose property is to be acquired and whose name and address appears on the last equalized county assessment roll, notice and a reasonable opportunity to appear at said hearing and be heard on the matters referred to in Code of Civil Procedure section 1240.030; and WHEREAS, said hearing has been held by the City and each person whose property is to be acquired by eminent domain was afforded the opportunity to be heard on said matters; and WHEREAS, the City may adopt a resolution of necessity pursuant to Code of Civil Procedure section 1240.040. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Palm Desert, California, that the City Council does hereby find, determine and declare upon evidence presented to the City Council as follows: Section 1. Notice and Hearing Compliance. The City has provided notice of this hearing to the owners of the Subject Property as required by Code of Civil Procedure section 1245.235. RESOLUTION NO: 2015-93 Section 2. Public Use. The public use for which the Subject Property is to be acquired is for the Alessandro West Project ("Project"). The City is authorized to acquire by eminent domain property necessary for such a purpose in accordance with Government Code section 37350.5 and Code of Civil Procedure sections 1240.040, 1240.110, and 1240.120. Section 3. Description of Property. The Subject Property to be acquired is generally described as a 1,620 square foot portion of a 7,200 square foot parcel of vacant land, located along the south side of San Antonio Circle, east of Monterey Avenue, in the City of Palm Desert, California, County of Riverside, otherwise known as a portion of APN 627-071-013, owned by David Holtz and Agnes Holtz. Attached hereto as Exhibit A is the legal description of the Subject Property to be acquired for the Project. Section 4. Findings. The City Council hereby finds and determines the following: a. The public interest and necessity require the proposed Project; b. The proposed Project is planned or located in the manner that will be the most compatible with the greatest public good and least private injury; C. The Subject Property is necessary for the proposed Project; and d. The offer required by Government Code section 7267.2 was made to the owners. Section 5. Condemnation for a More Necessary Use. If and to the extent any portion of the Subject Property is already devoted to a public use, the proposed Project is a more necessary public use pursuant to California Code of Civil Procedure sections 1240.610 et seq. Section 6. Further Activities. Best Best & Krieger LLP ("BBK"), as the City Attorney to the City, is hereby authorized to acquire the Subject Property in the name of and on behalf of the City by eminent domain. BBK is further authorized to institute and prosecute such legal proceedings as may be required. BBK may take such steps as may be authorized and required by law, and make such deposit as may be required, to permit the City to take possession of and use of the Subject Property at the earliest possible time. BBK is further authorized to correct any errors or to make or agree to non -material changes in the legal description of the Subject Property that is deemed necessary for the conduct of the condemnation action, or any other proceedings or transactions required to acquire the Subject Property. -2- RESOLUTION NO: 2015-93 2015. PASSED, APPROVED AND ADOPTED this day of AYES: NOES: ABSENT: ABSTAIN: ATTEST CITY CLERK APPROVED SUSAN MARIE WEBER, MAYOR -3- RESOLUTION NO: 2015-93 EXHIBIT A [LEGAL DESCRIPTION] -4- Resolution No. 2015-93 EXHIBIT "A" Right of Way Acquisition Parcel "A" The southerly 27.00 feet of Lot 134 of Palma Village Unit No. 7, in the City of Palm Desert, County of Riverside, State of California, as per map filed in Book 21 of Maps, Pages 16 through 18 inclusive, in the office of the County Recorder of said County of Riverside, and being in the northwest quarter of Section 20, Township 5 South, Range 6 East, S.B.M. Containing 1,620 square feet, more or less. Exhibit "B" is attached hereto, and by this reference is made a part hereof. A R. Page Garner City Surveyor City of Palm Desert, CA Page 1 of 1 101�Z1s Date Resolution No. 2015-93 0 SAN ANTONIO CIRCLE N89'47'00"E 60.00' 5' P U.E r1 A 1 • • A ► / 11 1 • /♦ r- 1 1 • 1 1 -r • 1 /♦ r7 1\/1 /1 1/ 11 1 /1 1 -� /�• 1 11\11 1 (\I I 1 / � � \ L- 1 1 I-� � i L- L� Jam\ ♦� L- ♦� 1 \ 1 1 1 � ♦� / i rN i. IA•• A♦♦ IVI Mt / 1 1 . lJ . A- 1 / 1 J. 1 \/ O O O O O O O O N O 17 r) N rn APN: 627-071-013 rn 0 � 3 p O LOT 135 LOT 134 [00 LOT 127 O z rzz N89'47'00"E 60.00' I �g PRCL "\" 1 fi2 .0 t S.F.ro 0 N89'47'00"E 60.00' 0 ALESSANDRO ALLEY ATE: OCT 2 2015 EXHIBIT "B" CALE- 1"=20' RIGHT OF WAY ACQUISITION SHEET NO. JM -- DEPARTMENT OF PUBLIC WORKS CITY OF PALM DESERT Indian wells Iffik ssa 2s++ Irvine BEST BEST & KRIEGER Irvine (949) 253-2600 ATTORNEYS AT L A W Los Angeles (213)817-8100 Ontario 655 West Broadway. 15" Floor. San Diego. CA 92101 (909) ga9-8584 Phone: (619) 525-1300 1 Fax: (619) 233-6118 ( www.bbklaw.com Bruce W. Beach (619) 525-1335 brute. beach@bbklew.00m File No. 72500.00890 October 27, 2015 BY 1ST CLASS MAIL AND CERTIFIED MAIL— RETURN RECEIPT REQUESTED David and Agnes Holtz 505 North Camden Beverly Hills, California 90210 Riverside (951) ee6-1450 Sacramento (916) 325-4000 Walnut Creek (925) 977-3300 Washington. DC (202)785-0000 Re: Notice of Hearing Re: Adoption of Resolution of Necessity to Acquire Property by Eminent Domain (California Code of Civil Procedure section 1245.235, Palm Desert, California (APN 627-071-013) Dear Mr. and Mrs. Holtz: As you are aware, the City of Palm Desert ("City") has made an offer to purchase a portion of your real property in fee simple interest located along the south side of San Antonio Circle, east of Monterey Avenue, in the City of Palm Desert, California, County of Riversi e, otherwise known as a portion of Assessor's Parcel Number 627-071-013 (hereafter, "Subject Property"). The purchase is for the City's proposed project to construct road improvements along the south side of San Antonio Circle in Alessandro Alley ("Project"). On November 12, 2015, at 4:00 p.m., or as soon thereafter as the matter can be heard, in the City Council chambers located at City Hall, 73-510 Fred Waring Drive, Palm Desert, California 92260, the City Council will consider the adoption of a Resolution of Necessity authorizing the City to acquire the Subject Property, described in Exhibit "A" and depicted in Exhibit "B," through eminent domain proceedings. You have the right to appear and be heard before the City Council at the hearing on the following matters and issues, and to have the City Council give consideration to any testimony and other information and evidence that may be offered by you with respect to the following issues, stated in Code of Civil Procedure section 1245.230(c), prior to deciding whether or not to adopt the proposed Resolution of Necessity: a. Whether the public interest and necessity require the proposed Project; 72500.00890\20906349.1 ids BEST BEST & KRIEGER ATTORNEYS AT LAW David and Agnes Holtz October 27, 2015 Page 2 b. Whether the proposed Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; C. Whether the Subject Property sought to be acquired by eminent domain is necessary for the proposed Project; d. Whether the pre -condemnation offer required by Government Code Section 7267.2, together with the accompanying statement and summary of the basis for the amount established as just compensation, was made to the owners of record. If you wish to appear at the hearing and be heard on the matters referred to above, you must file a written request with the City Clerk, City Hall, 73-510 Fred Waring Drive, Palm Desert, California 92260, within fifteen (15) days after this notice was mailed. The date of the mailing of this notice is set forth above. PLEASE NOTE: Failure to file a written request to appear and be heard will result in a waiver of the right to appear and be heard. The City is not oblieated to give an opportunity to appear and be heard to any person who fails to file a written request. If the Resolution of Necessity is adopted and you intend to challenge in court any of the issues or matters or determinations listed above, including in any subsequent eminent domain proceeding, you may be limited to raising only those issues and relying only upon such testimony and other information and evidence that is presented to the City Council prior to or at the hearing. Notwithstanding the foregoing, your election to not appear at the Resolution of Necessity hearing will not waive your right to claim greater compensation in a court of law than the amount of the City's pre -condemnation purchase offer. If the City Council elects to adopt the Resolution of Necessity, then within six months of adoption of the Resolution of Necessity, the City will commence eminent domain proceedings in Superior Court. If you and the City do not agree on the amount of just compensation to be paid, you have the legal right to have the compensation amount determined by the court or a jury. 72 500, 00890\20906349.1 ION BEST BEST & KwEGER ATTORNEYS AT LAW David and Agnes Holtz October 27, 2015 Page 3 Should you have any questions with regard to this matter, please do not hesitate to contact me at 619-525-1335. Very truly yours, Bruce W. Beach of BEST BEST & KRIEGER LLP Exhibit A [legal description of Subject Property] cc w/o enc.: Martin C. Alvarez, Director of Economic Development Robert W. Hargreaves, Esq. 72500 0089000906349 I EXHIBIT A A fee simple interest as described in Exhibit "A" and depicted in Exhibit "B." EXHIBIT "A" Right of Way Acquisition Parcel "A" The southerly 27.00 feet of Lot 134 of Palma Village Unit No. 7, in the City of Palm Desert, County of Riverside, State of California, as per map filed in Book 21 of Maps, Pages 16 through 18 inclusive, in the office of the County Recorder of said County of Riverside, and being in the northwest quarter of Section 20, Township 5 South, Range 6 East, S.B.M. Containing 1,620 square feet, more or less. Exhibit "B" is attached hereto, and by this reference is made a part hereof. _ A R. Page Garner City Surveyor City of Palm Desert, CA Page 1 of 1 iO/V /-S- Date I^ SAN ANTONIO CIRCLE a M N89'47'00"E 60.00' 5' P.U.E r♦ • 1 ► • t I 1 1 1 • /♦ r- 1 1► 1 1 T ► 1 /♦ rs ►� / t I 1\/1 f t \f 1 1 1 f\ 1 •� t- 1 1 1\1 I I 1\f 11 1 I t L� 1 1/ t 1 L� L- /ot ♦. L� ♦� 1 it 1 1\ ♦� IVI M< / 1 / 1 �♦ 1 !t � O � 0 0 APN: 627-071-013'- o � cn LOT 135 LOT 134 � r,00) LCT 127 0 rzOz N89'47'00"E 60.00' P RC L "\" 0 _ N 1,62 t S.F. M 0 ;n N89'47'00"E 60.00' 0 ALESSANDRO ALLEY ATE: OCT 2 2015 EXHIBIT "B" SCALE- 1 "=20' RIGHT OF WAY ACQUISITION SHEET NO. JM — DEPARTMENT OF PUBLIC WORKS CITY OF PALM DESERT Indian Weis 118 rk (760) 588-2811 Irvine BEST BEST & KwEGER ;i (949) 263-2600 ATTORNEYS AT L A W Los Angela (213) 817-8100 Ontario 855 Wag Broadway, 15'" Floor, San Diego, CA 92101 (909) gag-"" Phone: (819) 525-1300 1 Fax: (619) 233-6118 1 www.bbklaw.com Bruce W. Beach (619)525-1335 bruoe.beach@bbkiaw.com File No. 72500.00890 October 2, 2015 BY 1ST CLASS MAIL AND CERTIFIED MAIL — RETURN RECEIPT REQUESTED David and Agnes Holtz 505 North Camden Beverly Hills, California 90210 Re: Offer to Purchase a portion of property located along the south side of San Antonio Circle, east of Monterey Avenue (Alessandro Alley), Palm Desert, California (APN 627-071-013) Dear Mr. and Mrs. Holtz: Riverside (951) OW1450 Sacramento (916) 325-4000 Walnut Creek (925) 977-3300 WasNngton, DC (202) 785-0600 The City of Palm Desert is seeking to make road improvements along the south side of San Antonio Circle in Alessandro Alley. In order to make the road improvements, it is necessary to acquire a portion of your vacant property, Assessor's Parcel Number 627-071-013. Included with this letter is a copy of an appraisal prepared for the City by an independent appraiser of your property and the portion to be acquired. The City of Palm Desert is offering $6,302 for the purchase of a portion of your property necessary for its project. Alternatively, the City is willing to purchase the entire parcel for the appraised amount of $59,904. If you are in agreement to the sale of a portion or all of of your property, you may execute a copy of this letter below where it states, "it is agreed," with the address, telephone number and e-mail address for contacting you. This letter does not constitute a contract to sell but, rather, an offer to sell by you, which we will communicate to the City, as their attorney. Please also indicate whether you wish to sell all of the parcel or only the portion. We will inform the City of your willingness to sell. Upon approval by the City, we will open an escrow to transfer payment to you in exchange for title to all or a portion of the property to be acquired. The City will pay all escrow costs. If you do not agree to the City's purchase of the property, the City may consider acquiring the property by eminent domain. If eminent domain is necessary, the City will provide 72500.00990\20102404.1 1101k BEST BEST & KwEGER ATTORNBTs AT LAW David and Agnes Holtz October 2, 2015 Page 2 you with a notice of the hearing date for the City to consider the adoption of a Resolution of Necessity. Should you have any questions regarding this matter, please do not hesitate to contact the undersigned at your convenience. Very truly yours'', 3'41� tW . Bruce W. Beach of BEST BEST & KRIEGER LLP BWB:wjr Enclosure (appraisal) cc w/o enc.: Michael A. Scarcella, MAI Martin C. Alvarez, Director of Economic Development Robert W. Hargreaves, Esq. IT IS AGREED: (Name) Date: _ Address: E-mail: _ Telephone: ❑ All ❑ A portion 72500 00890\20102404 1 CAPITAL REALTY ANALYSTS September 30, 2014 REAL ESTATE APPRAISERS ♦ ANALYSTS ♦ ADviSORs 78-015 MAIN STREET, SUITE 207 LA QUINTA, CA 92253-8962 CU I-,alty yl"K-roin The City of Palm Desert Attn: Mr. John M. Wohlmuth 73510 Fred Waring Drive Palm Desert, CA 92260 RE: A Proposed Taking of a 1,620 SF Portion of a 7,200 SF Vacant Land Parcel, Located Along the South Side of San Antonio Circle, East of Monterey Avenue, Palm Desert, CA: Otherwise Known as APN: 627- 071-013; Riverside County, CA. Dear Mr. Wohlmuth: At your request and authorization, I have completed this appraisal report, setting forth my opinion of just compensation for the prospective taking of the subject property as of September 14, 2015. My report identifies the subject property and its market area, and presents the market data and analysis leading to my final estimate of just compensation. This report is subject to the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. This appraisal report is intended to comply with the appraisal guidelines of Title X1 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA"), the Uniform Standards of Appraisal Practice ("USPAP"), adopted by the Appraisal Standards Board of the Appraisal Foundation, and the California Code of Civil Procedure. I have personally inspected the subject property. I have located current sales and listings of comparable properties in the subject market area, and competing areas, and have analyzed this data in order to arrive at my final estimate of just compensation. The table on the following page shows my final estimate of just compensation for the proposed taking as of September 14, 2015: Phone: (760) 564-6222 Fax: (888) 985-9994 Email: mike@Fealtyadvisor.com September 30, 2015 Capital Realty Analysts / Mr. John M. Wohlmuth Description Value Estimate Value Before Taking $59,904 Fair Market Value Of Part Taken As Part Of The Whole $6,302 Remainder Value Before The Take $53,602 Remainder Value After The Take $53,602 Damages To The Remainder $0 Benefits To The Remainder $0 Net Damage To The Remainder $0 Benefits $0 Fair Market Value Of Part Taken As Part Of The Whole $6,302 Total Difference (Just Compensation) $6,302 $6,302 (Six Thousand Three Hundred Two Dollars) The undersigned have no personal interest either present or contemplated in the subject property, and certify that no fee, received or to be received for the employment of my services is in any way contingent on the results of the opinion reported herein. I hope you find the details of this report relevant to your decisions. Thank you for the opportunity to be of service. Respectfully submitted, Capital Realty Analysts #WVA'Ie� Michael A. Scarcella, MAI State Certification No.: AGO19463 Expiration Date: October 24, 2015 �� �� Table of Contents Tableof Contents.................................................................................. 4 Summary of Important Facts and Conclusions ...................................... 5 Photographs Relating to the Subject Property ..................................... 7 Photographs Relating to the Subject Property ..................................... 8 Introduction / History of the Subject Property ..................................... 10 Property Rights Appraised................................................................ 11 Definition of Fee Simple Estate......................................................... 11 Definition of Market Value................................................................ 11 Definition of Eminent Domain.......................................................... 11 Definition of Condemnation.............................................................. 11 Definition of Easement..................................................................... 11 Definition of Damages...................................................................... 12 Definition of Benefits:....................................................................... 12 Scopeof Work.................................................................................. 12 Regional Analysis - Coachella Valley .................................................... 18 SiteAnalysis........................................................................................ 22 Highest and Best Use Analysis............................................................ 29 AppraisalProcess................................................................................ 32 Sales Comparison Approach................................................................ 34 Certification........................................................................................ 53 Assumptions and Limiting Conditions ................................................. 56 C-TAI 0 2015 CAPITAL REALTY ANALYSTS Page 4 Summary of Important Facts and Conclusions Client: The City of Palm Desert Attn: Mr. John M. Wohlmuth 73510 Fred Waring Drive Palm Desert, CA 92260 Intended Users: The Client Intended Use: The intended use of this appraisal is for negotiation and possible eminent domain proceedings. Property Type: Vacant Land Location: South Side of San Antonio Circle, East of Monterey Avenue, Palm Desert, CA Identification: APN: 627-071-013; Riverside County, CA. Thomas Brothers Page 848 Grid El, Riverside County, CA. Guide Reference: Census Tract Number: Tract 451-08 Block 1 Type Of Report: Date of Valuation: Date of Appraisal: Appraisal Report September 14, 2015 September 30, 2015 Owner of Record: A Preliminary Title Report (PTR) was submitted and examined. According to the PTR, title to the subject is vested with David Holtz and Agnes Holtz. Site: According to the Riverside County Assessor's Plat Map and data supplied by the Client, the site sizes of the components of the subject property are as follows: Lot Lot Total Description Width Depth SF Before 60 120 7,200 Take Area 60 27 1,620 Remainder Area 60 93 5,580 C3J1 0 2015 CAPITAL REALTY ANALYsrs Page 5 Improvements: None Zoning: According to the Zoning Map of the City of Palm Desert, the subject is zoned R-1, Residential Single Family. A Zoning Map is located at the end of the Site Analysis section of this report. General Plan According to the General Plan Map of the City of Designation: Palm Desert, the subject has a General Plan Designation of R-M, Medium Density 4-10 du/ac. A General Plan Map is located at the end of the Site Analysis section of this report. Highest And Best Use, "As Vacant": Highest And Best Use, "As Improved": Property Rights Appraised: Hold for future price appreciation N/A, the subject is vacant Fee Simple Estate Final Estimate of Just I Description value Estimate Compensation: Value Before Taking $59,904 Fair Market Value Of Part Taken As Part Of The Whole $6,302 Remainder Value Before The Take $53,602 Remainder Value After The Take $53,602 Damages To The Remainder $0 Benefits To The Remainder $0 Net Damage To The Remainder $0 Benefits $0 Fair Market Value Of Part Taken As Part Of The Whole $6,302 Total Difference (Just Compensation( $6,302 Cad0 2015 CAPITAL REALTY ANALYSTS Page 6 A. 1,4wypp T tle` 73510 Fred Waring Drive Palm Desert, CA 92260 Attn: Robin McCormick Your Reference No: Lawyers Title Company 3480 Vine Street Suite 300 Riverside, CA 92507 Phone: (951) 774-0825 Fax: ( ) Title Officer: Lisa Saly (TO)/ Lucia Ornelas, ]r.TO--So email: tu69@ltic.com Phone No.: (951) 774-0825 x 603 Fax No.: (951) 782-0871 File No.: 615696241 Property Address: Vacant Land, City of Palm Desert, California PRELIMINARY REPORT Dated as of August 25, 2015 at 7:30 a.m. In response to the application for a policy of title insurance referenced herein, Lawyers Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitation on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. The policy(s) of title insurance to be issued hereunder will be policy(s) of Commonwealth Land Title Insurance Company. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report Is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. CLTA Preliminary Report Form - Modified (11-17-06) Page 1 File No: 615696241 SCHEDULE A The form of policy of title insurance contemplated by this report is: CLTA/ALTA 2013 Homeowner's Policy of Title Insurance ALTA Loan 2006 The estate or interest In the land hereinafter described or referred to covered by this report is: A Fee Title to said estate or interest at the date hereof is vested in: David Holtz and Agnes Holtz, husband and wife, as joint tenants The land referred to herein is situated in the County of Riverside, State of California, and is described as follows: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF CLTA Preliminary Report Form - Modified (11-17-06) Page 2 File No: 615696241 EXHIBIT "A" THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOT 134 OF PALMA VILLAGE UNIT 7, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 21, PAGES 16 THROUGH 18, INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ASSESSOR'S PARCEL NUMBER: 627-071-013-3 CLTA Preliminary Report Form - Modified (11-17-06) Page 3 File No: 615696241 SCHEDULE B - Section A The following exceptions will appear in policies when providing standard coverage as outlined below: (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the Issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. CLTA Preliminary Report Form - Modified (11-17-06) Page 4 File No: 615696241 SCHEDULE B - Section B At the date hereof Exceptions to coverage in addition to the printed exceptions and exclusions in said policy form would be as follows: A. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2015-2016. B. Notice of Intent to Remove Delinquent Special Tax Installments from Tax Roll Executed By: City of Palm Desert Dated: July 8, 1997 Recording Date: August 11, 1997 Recording No.: 283959, of Official Records For questions concerning the delinquent assessment installment amounts, if any, covered by this notice, contact: Frank Fannon Associate Director MuniFinacial 28765 Single Oak Drive Suite 200 Temecula, CA 92590 (909)699-3990 C. The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Chapter 3.5 (commencing with Section 75) or Part 2, Chapter 3, Articles 3 and 4, respectively, of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A or as a result of changes in ownership or new construction occurring prior to Date of Policy. 1. Water rights, claims or title to water, whether or not disclosed by the Public Records. 2. Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, source of income, gender, gender identity, gender expression, medical condition or genetic information, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document Recording Date: June 28, 1946 Recording No.: Book 758. Page 224. of Official Records All easements, offers and dedications as shown on the official map Tract of: Palma Villaae Unit No. 7 4. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document: Granted To: California Electric Power Company Purpose: Public utilities Recording Date: March 4, 1947 Recording No: Book 818, Page 524, of Official Records Affects: said land more particularly described therein CLTA Preliminary Report Form - Modified (11-17-06) Page 5 File No: 615696241 Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document: Granted To: Palm Village Land Company, a Corporation Purpose: Right to pump or otherwise extract water and to remove the same to or upon other lands, together with the right to erect, lay, maintain and operate water pipes, ditches, flumes or other conduits Recording Date: January 8, 1948 Recording No: Book 878, Page 537, of Official Records Affects: said land more particularly described therein 6. A Notice of Pending Lien property as disclosed by a document Recording Date: May 6, 2005 Recording No.: 2005-0363282, of Official Records Reference is made to said document for full particulars. 7. A Notice of Pending Lien property as disclosed by a document Recording Date Recording No.: May 18, 2010 2010-0229535, of Official Records Reference is made to said document for full particulars. 8. Please be advised that our search did not disclose any open Deeds of Trust of record. If you should have knowledge of any outstanding obligation, please contact the Title Department immediately for further review prior to dosing. 9. Any rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the Public Records. The Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of title insurance without excepting this item from coverage. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. END OF SCHEDULE B EXCEPTIONS PLEASE REFER TO THE "NOTES AND REQUIREMENTS SECTION" WHICH FOLLOWS FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION CLTA Preliminary Report Form - Modified (11-17-06) Page 6 File No: 615696241 REQUIREMENTS SECTION: Req. No. 1: In order to complete this report, the Company requires a Statement of Information to be completed by the following party(s), Party(s): All Parties The Company reserves the right to add additional items or make further requirements after review of the requested Statement of Information. NOTE: The Statement of Information is necessary to complete the search and examination of title under this order. Any title search includes matters that are indexed by name only, and having a completed Statement of Information assists the Company in the elimination of certain matters which appear to involve the parties but in fact affect another party with the same or similar name. Be assured that the Statement of Information is essential and will be kept strictly confidential to this file. Req. No. 2: Pursuant to the type of transaction contemplated in this Report, a Documentary Transfer Tax Affidavit must be filled out and executed to accompany the Transfer Deed, a form of which can be obtained by going to the following Website www.riversideacr.com or by contacting your Title Officer or Escrow Officer. CLTA Preliminary Report Form - Modified (11-17-06) ' Page 7 N File No: 615696241 INFORMATIONAL NOTES SECTION Note No. 1: The information on the attached plat is provided for your convenience as a guide to the general location of the subject property. The accuracy of this plat is not guaranteed, nor is it a part of any policy, report or guarantee to which it may be attached. Note No. 2: California insurance code section 12413.1 regulates the disbursement of escrow and sub -escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds deposited with the company by wire transfer may be disbursed upon receipt. Funds deposited with the company via cashier's check or teller's check drawn on a California based bank may be disbursed on the next business day after the day of deposit. If funds are deposited with the company by other methods, recording and/or disbursement may be delayed. All escrow and sub -escrow funds received by the company will be deposited with other escrow funds in one or more non -interest bearing escrow accounts of the company in a financial institution selected by the company. The company may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with such financial institution, and the company shall have no obligation to account to the depositing party in any manner for the value of, or to pay to such party, any benefit received by the company. Those benefits may include, without limitation, credits allowed by such financial institution on loans to the company or its parent company and earnings on investments made with the proceeds of such loans, accounting, reporting and other services and products of such financial institution. Such benefits shall be deemed additional compensation of the company for its services in connection with the escrow or sub -escrow. For wiring Instructions please contact your Title Officer or Title Company Escrow officer. Note No. 3: Lawyers Title is a division of Commonwealth Land Title Insurance Company. The insurer in policies of title insurance, when issued in this transaction, will be Commonwealth Land Title Insurance Company. Note No. 4: There are no conveyances affecting said land recorded within 24 months of the date of this report. Note No. 5: The Company requires current beneficiary demands prior to closing. If the demand is expired and a current demand cannot be obtained, our requirements will be as follows: a) If the Company accepts a verbal update on the demand, we may hold an amount equal to one monthly mortgage payment. This hold will be in addition to the verbal hold the lender may have stipulated. b) If the Company cannot obtain a verbal update on the demand, we will either pay off the expired demand or wait for the amended demand, at our discretion. c) All payoff figures are verified at closing. If the customer's last payment was made within 15 days of closing, our Payoff Department may hold one month's payment to insure the check has cleared the bank (unless a copy of the cancelled check is provided, in which case there will be no hold). CLTA Preliminary Report Form - Modified (11-17-06) Page 8 File No: 615696241 Note No. 6: Property taxes, including any personal property taxes and any assessments collected with taxes, are paid. For proration purposes the amounts were: Tax Identification No.: 627-071-01 -3 Fiscal Year: 2014-2015 1st Installment: $63.04 2nd installment: $63.04 Exemption: None Shown Code Area: 018-002 Processor: TG Date Typed: September 3, 2015 CLTA Preliminary Report Form - Modified (11-17-06) Page 9 k r :4� r w ) _! [ ..F a:^ M F # s ls g Cd R r a # ^ I ^ ^ � I ./1 - O V V — � g RSF A rta . as e �12 ig d ' rIre acr+x Uj w(LC> LU IU 0 r i I — + rj sv i m # _� _:.,.. sox arsi —° ""4 a t cr c 1 ' i- # R It to an due rre l w C.> A _.. cxiewx a OR n re 17 a ea r �.x Para a This map should be used for reference purposes only. No liability is assumed for the accuracy of the data shown. Parcels may not co pbj Wilh local subdivision or building ordinances. - 4. .. WHEN RECORDED PLEASE MAIL TO: Code Compliance Division c/o City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 EXEMPT., Government Code Section 6103 NOTICE OF LIEN In the matter of the property of: David and Agnes Holtz 505 N. Camden Drive Beverly Hills, CA 902103201 DOC # 2010-0229535 05/18/2010 08:00A Fee:NC RecordedRi�eOfficial Records County of Riverside Larry u. Yard Assessor, County Clerk d Recorder IN 1 NOTICE IS HEREBY GIVEN to all persons, pursuant to Section 8.20, Public Nuisance Ordinance of the City of Palm Desert Municipal Code, County of Riverside, State of California, that proceedings have been commenced with respect to the violations described as maintaining property maintenance violations on said property. Such proceedings are based upon the noncompliance of such real property, located at 44900 San Antonio Cir, Palm Desert, California, also legally known as APN No. 627-071-013; and that any costs incurred by the City, including, but not limited to investigative, administrative and abatement costs and attorney's fees, will become a lien on the property. Legal description: Lot 134 MB 0211016 Palma Village Unit 7, as per Map recorded in Book 21, Page 16 of Maps, for total description see assessor's map in the Office of the. County Recorder of said county. Further details regarding this notice may be addressed by inquiring to the City of Palm Desert, Code Compliance Division, 73-510 Fred Waring Drive, Palm Desert, California 92260. CITY OF)PALM DESERT Hart H. Ponder, Jr. Code Compliance Manager Code Compliance Division Date requested: May 10, 2010 0 4to • t' State of California }SS County of Riverside } On May 10, 2010, before me, Lorena Gloria Armenta, a Notary Public, personally appeared Hart H. Ponder, Jr. who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. LORENA GLORIA ARMENU j Commisslon #.17776`5 16 Notary Public • Calflornl* Motside County SignatureAe��Z(Seal) WCOMM 2p11 -OPTIONAL- DESCRIPTION OF ATTACHED DOCUMENT: Notice of Lien/Nuisance Abatement Property Owner: David and Agnes Holtz APN: 627-071-013 Property address: 44900 San Antonio Cir, Palm Desert, CA (TITLE OR TYPE OF DOCUMENT) 1 (NUMBER OF PAGES) May 10, 2010 JDATE OF DOCUMENT) WHEN RECORDED PLEASE MAIL TO: Code Compliance Division c/o City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 EXEMPT., Government Code Section 6103 NOTICE OF LIEN In the matter of the property of. David and Agnes Holtz 505 N. Camden Drive Beverly Hills, California 90210 OOC " 2005-0363282 05/06/2005 08:00A Fee:NC Page 1 of 1 Recorded in Official Records County of Riverside Larry W. Uard Assessor, County Clerk & Recorder 1111111111111 IN 1111111111111111111111111111111111 Corr I COMA i -I- I — I EXW NOTICE IS HEREBY GIVEN to all persons, pursuant to Section 8.20, Public Nuisance Ordinance of the City of Palm Desert Municipal Code, County of Riverside, State of California, that proceedings have been commenced with respect to the violations described as maintaining a public nuisance by allowing overgrown weeds and debris on vacant lot on said property. Such proceedings are based upon the noncompliance of such real property, located at 44900 San Antonio Circle, Palm Desert, California, also legally known as APN No. 627-071-013; and that any costs incurred by the City, including, but not limited to investigative, administrative and abatement costs and attorney's fees, will become a lien on the property. Legal description: Lot 134 MB 021/016 Palma Village Unit 7, as per Map recorded in Book 21, Page 16 of Maps, for total description see assessor's map in the Office of the County Recorder of said county. Further details regarding this notice may be addressed by inquiring to the City of Palm Desert, Code Compliance Division, 73-510 Fred ring Drive, Palm Desert, California 92260. CITY OF PAILM DESERT Hart H. Ponder, Jr. Code Compliance Manager Code Compliance Division Date requested: April 19, 2005 MA a