Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Res OB-106 (2)
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: AUTHORIZATION TO EXECUTE A PURCHASE AND SALE AGREEMENT WITH THE CITY OF PALM DESERT FOR THE PROPERTY LOCATED AT 72-565 HIGHWAY 111, KNOWN AS ENTRADA DEL PASEO / APN 640- 370-016, PROPERTY 8 OF THE LONG RANGE PROPERTY MANAGEMENT PLAN SUBMITTED BY: Martin Alvarez, Director of Economic Development PROPERTY City of Palm Desert BUYER: 73510 Fred Waring Drive Palm Desert, CA 92260 DATE: December 1, 2014 CONTENT: Resolution No. OB- 106 Purchase and Sale Agreement (CONTRACT NO. SA34050) Appraisal / Location Map Recommendation Waive further reading and adopt Resolution No. OB-106: 1. Authorize the Executive Director to execute a Purchase and Sale Agreement with the City of Palm Desert to sell the Successor Agency owned property located at 72- 565 Highway 111 (APN 640-370-016). 2. Authorize the Executive Director to execute said agreement after approval is received from the State Department of Finance. Executive Summary Approval of staff's recommendation will authorize the Executive Director to execute a Purchase and Sale Agreement (PSA) with the City of Palm Desert for the sale of a Successor Agency owned parcel located at 72-565 Highway 111 (see location map). This parcel is identified to be sold in the approved Long Range Property Management Plan. The PSA is in the amount of the appraised value ($207,000.00) and will require approval by the Oversight Board and the State Department of Finance, prior to execution. Background On June 2, 2014 the Successor Agency's Long Range Property Management Plan (LRPMP) was approved by the State Department of Finance. The subject parcel is identified as Site (8) on the LRPMP and requires disposition at or above fair market value. The site is vacant and totals 29,620 square feet. Staff discussed with the City Council the opportunity to acquire the site with City funds \\srv-fi12k3\groups\Econ Development\Martin Alvarez\SA Property Sales\Entrada Del Paseo\Oversight BoardSR Entrada PSA 12-1-14.doc Staff Report — Oversight Board Sale of Property- Entrada Del Paseo Site (8) December 1, 2014 Page 2 of 2 to construct an outdoor pavilion that could house events, including the existing Farmer's Market, art shows, as well as other community events. On November 13, 2014, the City Council approved the rezoning of this site from Office Professional to Public Institution (public/government use). Discussion With the dissolution of the Redevelopment Agency and the recent approval of the Long Range Property Management Plan, the Successor Agency is tasked with selling this site. In anticipation of the sale of the property, the Successor Agency contracted with Lidgard & Associates, Inc. to conduct a fair market appraisal. Lidgard's appraised value for the site is $207,000.00, based on its new zoning of Public Institution (see attached appraisal). Lidgard's appraisal complies with the reporting requirements set forth in the Uniform Standards of Professional Appraisal Practice, under Standard Rule 2-2(a). Staff has prepared the attached Purchase and Sale Agreement, selling the site to the City of Palm Desert for the appraised value. Funding for the construction of a future pavilion structure at this site may be available from the Successor Agency bond proceeds. The Oversight Board recently approved the El Paseo Multi -Use Community Center Bond Proceeds Funding Agreement and it is currently under review by the State Department of Finance. Staff recommends that the Oversight Board authorize the Executive Director to execute the Purchase and Sale Agreement with the City of Palm Desert for the appraised value of $207,000.00., pending approval from the State Department of Finance. Fiscal Analysis The property is listed on the LRPMP to be sold for fair market value. The LRPMP requires that all proceeds of the sale be distributed as property taxes to the affected taxing entities, in accordance with the terms of the California Health and Safety Code, Section 34191.5 (c)(2)(B). Each taxing entity including the City will receive a portion of the proceeds based on their respective tax rate. Submitted B Martin Alvarez Director of Econmic Development Revi w d: Paul S , Director of Finance Approv John M.'Wohlmuth, Executive Director Department Head: Rudy AEosta, Assistant City Manager (6 —I Y OVERSIGHT BOARD ON a—pl_ I VERIFIED B Original on file with CityJ Clerk's Office \\srv-fi12k3\groups\Econ Development\Martin Alvarez\SA Property Sales\Entrada Del Paseo\Oversight BoardSR Entrada PSA 12-1-14.doc NOTICE OF ADJOURNED REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY Proposed Adoption of: A Resolution Directing the Execution of a Purchase and Sale Agreement with the City of Palm Desert for Property Located at 72-565 Highway 111 (Entrada del Paseo) known as APN: 640-370-016, Property 8, Pursuant to the Long Range Property Management Plan Date: December 1, 2014 Time: 1:30 P.M. or as soon thereafter as the matter may be heard Place: Administrative Conference Room, located at Palm Desert City Hall, 73-510 Fred Waring Drive, Palm Desert, California NOTICE IS HEREBY GIVEN that at the meeting of the Oversight Board (the "Oversight Board") of the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") to be held on December 1, 2014, at 1:30 P.M., or as soon thereafter as possible, the Oversight Board will consider the adoption of a resolution directing the execution of a Purchase and Sale Agreement with Family Development for Property located at 72-565 Highway 111 (Entrada del Paseo) known as APN: 640-370-016, Property 8, pursuant to the Successor Agency's Long Range Property Management Plan. Such Long Range Property Management Plan has been approved previously by the Oversight Board and the California State Department of Finance. Interested persons are invited to attend this meeting and be heard regarding this matter. An individual who challenges any decision regarding the proposed action in court may be limited to raising only those issues such individual or someone else raised at the meeting described in this notice or in written correspondence delivered to the Oversight Board at, or prior to, the meeting. Due to the time constraints and the number of persons wishing to give oral testimony, time restrictions may be placed on oral testimony at the meeting regarding the proposal. Any interested person may wish to make comments in writing to assure that the relevant views are expressed adequately. Written comments may be submitted to the Oversight Board prior to the time set for the meeting, to the attention of the Secretary of the Oversight Board at 73-510 Fred Waring Drive, Palm Desert. Further information may be obtained by contacting Martin Alvarez, Dir. of Economic Development, at 73-510 Fred Waring Drive, Palm Desert, or by telephone at (760) 346-0611, Ext 467 or by email at malvarez@cityofpalmdesert.org. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in an Oversight Board meeting, please contact the Office of the City Clerk of the City of Palm desert at (760) 346-0611. Notification at least 48 hours prior to the meeting or time when services are needed will assist the Oversight Board staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Assisted hearing devices will be available at this hearing without prior notification Dated this'day �,V- , 2014 Ra helle D. Klassen, Secretary to the Successor Agency to the Palm Desert Redevelopment Agency RESOLUTION NO. OB- 106 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTION OF A PURCHASE AND SALE AGREEMENT WITH THE CITY OF PALM DESERT FOR PROPERTY LOCATED AT 72-565 HIGHWAY 111, PALM DESERT, CA (APN 640-370- 016), PROPERTY NO. 8 OF THE LONG RANGE PROPERTY MANAGEMENT PLAN RECITALS: A. Pursuant to AB X1 26 (enacted in June 2011), as modified by the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), the Palm Desert Redevelopment Agency (the "Former Agency") was dissolved as of February 1, 2012 and the Successor Agency was established, and the Oversight Board to the Successor Agency (the "Oversight Board") was constituted. B. AB 1484 (enacted June 2012) amended and supplemented AB X1 26 (AB X1 26 and AB 1484, together, being referred to below as the "Dissolution Act"). C. Pursuant to the Dissolution Act, the Successor Agency is tasked with winding down the affairs of the Former Agency. D. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all real properties of the Former Agency transferred to the control of the Successor Agency by operation of law. E. On May 5, 2014, the Oversight Board adopted Resolution No. OB-073, approving a long-range property management plan (the "LRPMP") which addresses the disposition of the real properties owned by the Successor Agency. F. As indicated in the DOF's letter dated June 2, 2014, the DOF has approved the LRPMP. G. Pursuant to HSC Section 34191.3, the DOF-approved LRPMP shall govern, and supersede all other provisions of the Dissolution Act relating to, the disposition and use of the real property assets of the Former Agency. H. Pursuant to the approved LRPMP, the Oversight Board authorizes the execution of a Purchase and Sale Agreement (see Exhibit A) with The City of Palm Desert for Property No. 8 of the LRPMP (APN 640-370-016) in the amount of $207,000.00 (fair market value). I. In accordance with the terms of California Health and Safety Code Section 34191.5(c)(2)(B), the proceeds of this property sale will distributed as property taxes to the affected taxing entities. -1- RESOLUTION NO. OB-106 J. The Oversight Board is adopting this Resolution to direct the execution of the Purchase and Sale Agreement (see Exhibit A) with The City of Palm Desert for fair market value as directed by the approved LRPMP. K. Notice of the proposed action presented in this Resolution was posted on the Successor Agency's website (being a page on the City's website) and at three public places: beginning on November 20 , 2014. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals, and each of them, are true and correct. Section 2. The Oversight Board hereby authorizes and directs the Successor Agency to complete the execution of the Purchase and Sale Agreement (see Exhibit A) with The City of Palm Desert for fair market value as directed by the approved LRPMP. The Executive Director of the Successor Agency is hereby authorized to execute the Purchase and Sale Agreement to complete the disposition of the properties. Section 3. The members of the Oversight Board and officers and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution. Section 4. This Resolution shall become effective in accordance with HSC Section 34181(f). APPROVED and ADOPTED this day of , 2014. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY RESOLUTION NO. OB -106 EXHIBIT A OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY PURCHASE AND SALE AGREEMENT WITH THE CITY OF PALM DESERT FOR PROPERTY LOCATED AT 72-565 HIGHWAY 111, PALM DESERT, CA (APN 640- 370-016, PROPERTY NO. 8 OF THE LONG RANGE ROPERTY MANAGEMENT PLAN -3- RESOLUTION NO. OB-106 CONTRACT NO. SA34050 AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS Foresite Escrow ("Escrow") 41-995 Boardwalk, Ste G-2 Palm Desert, CA 92211 Attention: Esther Lopez, Escrow Officer ("Escrow Holder") Escrow No: THIS AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS ("Agreement") is dated for reference purposes as of this day of , 2014 (the "Effective Date"), by and between the SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, a public entity ("Seller"), and CITY OF PALM DESERT, a California municipal corporation ("Buyer"). This Agreement is made with reference to the following facts: RECITALS A. Seller is the owner of certain real property located in the City of Palm Desert, Riverside County, California, commonly known as APN: 640-370-016 and more particularly described in Exhibit A attached hereto ("Property"). Reference herein to the Property includes all of Seller's right, title and interest in and to any and all improvements, fixtures, rights -of -way, utility rights, entitlements, claims or other benefits in any way connected with the Property. B. Buyer desires to purchase the Property from Seller and Seller desires to sell the Property to Buyer pursuant to the terms and conditions set forth in this Agreement. THE PARTIES AGREE AS FOLLOWS: 1. Purchase and Sale of Property. Upon the terms and conditions described below, Buyer agrees to purchase and Seller agrees to sell and convey the Property to Buyer. 2. Purchase Price. The purchase price for the Property will be an amount equal to Two Hundred and Seven Thousand Dollars ($207,000.00) ("Purchase Price"). The purchase price shall be paid in cash, and this Agreement is not subject to any financing contingency. 3. Payment of Purchase Price. Not later than two (2) business day prior to Closing, Buyer shall deposit with Escrow Holder in immediately available funds the Purchase Price, together with such other amounts, if any, as may be required in order to pay Buyer's share of prorations. RESOLUTION NO. OB-106 CONTRACT NO. SA34050 4. Title. 4.1 Preliminary Title Report. Upon execution of this Agreement by both parties, Seller will order from Lawyer's Title Company (through its Riverside, California office — "Title Company") a preliminary title report, together with legible copies of all title exception documents described therein (collectively the "Report"). Within five (5) business days after Buyer's receipt of the Report, Buyer may object, by written notice to Seller, to any title exceptions which Buyer determines are unacceptable, in Buyer's sole discretion. Seller may thereafter elect, at its option and at its sole cost and expense, either to eliminate such title objections prior to or at the Close of Escrow, or not to do so. If Seller is unable or unwilling to eliminate any such title objections, Buyer may elect to terminate this Agreement. Alternatively, Buyer may elect to waive any such title objections and accept title to the Property subject to such matters. 4.2 Title Policy. At Close of Escrow, Seller will convey good and marketable title to the Property to Buyer as evidenced by a CLTA Standard Form Owners Policy of Title Insurance, or at Buyer's election and expense, an ALTA Extended Owner's Policy of Title Insurance, issued by the Title Company in an amount equal to the Purchase Price, and containing such endorsements (the "Endorsements") as Buyer may, at Buyer's expense, reasonably require ("Title Policy"). 5. [Intentionally Omittedl. 6. As Is Acceptance of Property. Buyer acknowledges that prior to Close of Escrow, it will have had the opportunity to conduct such tests and evaluations as it deems reasonably necessary in order to investigate the condition of the Property, including its environmental status. Buyer acknowledges that it is acquiring the Property in its "as is" condition with no warranty or representation from Seller regarding the physical condition of the Property, its environmental condition or its suitability for Buyer's intended purposes. Buyer acknowledges that it is acquiring the Property based solely in reliance on its own inspections and examination and its own evaluation of the Property. Buyer agrees that no representations, statements or warranties have at any time been made by Seller or its agents regarding the physical condition of the Property except as may be contained in this Agreement. Buyer acknowledges that there may be conditions affecting the Property unknown to Buyer that may adversely affect its value or use for Buyer's intended purposes. Buyer nevertheless waives any rights or recourse it may have with respect to such unknown conditions and any damage, loss, costs or expense related thereto, including rights accruing under California Civil Code § 1542, which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." G:\Econ Development\Martin Alvarez\SA Property Sales\Entrada Del Paseo\PD - SARDA - Purchase and Sale Agreement (Entrada Del Paseo) doc 2 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 Buyer acknowledges that it has either consulted with or had an opportunity, to consult with legal counsel regarding the above waiver. The provisions of this Section 6 will survive Close of Escrow. Buyer Initials 7. Escrow. 7.1 Escrow Instructions. This Agreement shall constitute instructions of Buyer and Seller to Escrow Holder. The parties agree to execute such additional pro forma instructions as Escrow Holder may reasonably require, however, in the event of a conflict, the terms and provisions of this Agreement shall govern. 7.2 Opening of Escrow. Upon execution of this Agreement, Buyer and Seller shall cause an escrow to be opened with Escrow Holder by depositing with Escrow Holder a fully executed copy of this Agreement. Escrow shall be deemed opened as of the date this Agreement is deposited with Escrow Holder ("Escrow Opening"). 7.3 Close of Escrow; Closing Date. "Close of Escrow" shall mean the date on which the Grant Deed conveying title from Seller to Buyer is recorded in the Official Records of the County Recorder of Riverside County, California. The form of the Grant Deed will be as set forth in Exhibit B attached hereto. Provided that this Agreement is not earlier terminated pursuant to the terms and provisions hereof, and provided that all of the conditions precedent to the Close of Escrow set forth in this Agreement have been approved or waived as herein provided, Escrow shall close on or before thirty (30) days following the Escrow Opening ("Closing Date"). Seller may terminate this Agreement if Seller has performed its obligations hereunder, and failure to close Escrow results from a material default by Buyer. Buyer may terminate this Agreement if Buyer has performed its obligations hereunder, and failure to close Escrow results from a material default by Seller. By causing the Close of Escrow to occur, Escrow Holder shall be deemed to have irrevocably committed to cause the Title Company to issue the Title Policy to Buyer. If the County Recorder of Riverside County, California is closed on the last day for closing Escrow, then the parties agree that Escrow Holder shall have until the next day the Recorder is open to record the Grant Deed and close Escrow. 7.4 Documents and Funds from Buyer. Not later than two (2) business days prior to the Closing Date, Buyer will deliver or will assure that the following documents and funds have been delivered to Escrow Holder: (a) Purchase Price. The Purchase Price, as described in Section 2 above. G \Econ Development\Martin Alvarez\SA Property Sales\Entrada Del Paseo\PD - SARDA - Purchase and Sale Agreement (Entrada Del Paseo) doc 3 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 (b) Preliminary Chance of Ownership Statement. A Preliminary Change of Ownership Statement or in lieu thereof, the appropriate fee, to be provided to the Recorder's office at Close of Escrow. (c) Other Sums and Documents. All other sums and documents required by Escrow Holder according to this Agreement to carry out and close the Escrow. 7.5 Documents and Funds from Seller. Not later than two (2) business day prior to the Closing Date, Seller will deliver or will assure that the following documents and funds have been delivered to Escrow Holder: (a) Grant Deed. A fully executed and acknowledged Grant Deed conveying the Property to Buyer, or Buyer's nominees or assigns, in fee simple. (b) FIRPTA Affidavit. An original affidavit, using Escrow Holder's standard forms, certifying that Seller and this transaction are not subject to the withholding requirements of the Foreign Investment in Real Property Tax Act and equivalent California legislation. (c) Other Sums and Documents. All other documents and sums required by Escrow Holder according to this Agreement to carry out the Escrow and to issue the Title Policy to Buyer in the form required by Buyer. 7.6 Conditions to the Close of Escrow. Close of Escrow shall not take place unless and until: (a) Seller's Obligation. Seller's obligation to sell the Property to Buyer is contingent on the following: (i) Buyer shall have delivered the Purchase Price, Tess any credits described in this Agreement, for the Property. (ii) Buyer shall have timely performed all other obligations of Buyer under this Agreement. In the event that any of the foregoing conditions have not occurred or been satisfied or waived by the Closing Date, Seller shall be entitled to terminate this Agreement and, subject to the provisions of Section 7.9 below, any funds deposited by Buyer and any interest thereon will be returned to Buyer. (b) Buyer's Obligation. Buyer's obligation to purchase the Property is contingent on the following: (i) Buyer shall have approved or shall be deemed to have approved the Report for the Property pursuant to Section 4.1. GA\Econ Development\Martin Alvarez SA Property Sales\Entrada Del Paseo'PD - SARDA - Purchase and Sale Agreement (Entrada Del Paseo) doc 4 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 (ii) Seller shall have delivered insured title to the Property on the terms required by Section 4. (iii) No loss or damage to the Property shall have occurred which would permit Buyer to terminate this Agreement pursuant to the provisions herein below. (iv) Seller shall have performed all of its other obligations under this Agreement. In the event that any of the foregoing conditions have not occurred or been satisfied or waived by the date(s) specified, Buyer shall be entitled to terminate this Agreement and, subject to the provisions of Section 7.9 below, any funds deposited by Buyer, and any interest thereon will be returned to Buyer. (c) Delivery of Sums and Documents. Both parties have deposited with Escrow Holder all sums and documents required by this Agreement. (d) Title Policy. The Title Company is prepared to issue the Title Policy to Buyer with title as described in Section 4 above. 7.7 Closina Procedure. Upon receipt of all funds and instruments described in this Section 7, and upon satisfaction or waiver of all contingencies and conditions set forth in this Agreement, Escrow Holder shall: (a) Record the Grant Deed. Record the Grant Deed in the Official Records of Riverside County, California. (b) Title Policy. Cause the Title Policy to be issued. (c) Purchase Price. Deliver the Purchase Price to Seller, less any costs and expenses shown on the closing statements approved by Seller and Buyer, which costs and expenses shall be disbursed as instructed by Seller and Buyer in escrow instructions delivered to Escrow Agent prior to the Closing Date. 7.8 Electronic/Counterpart Documents. In the event Buyer or Seller utilizes "facsimile" or other electronically transmitted signed documents, the parties hereby agree to accept and instruct Escrow Holder to rely upon such documents as if they bore original signatures. Buyer and Seller hereby agree, if requested by Escrow Holder, to provide to Escrow Holder within seventy-two (72) hours after transmission, such documents bearing the original signatures. Buyer and Seller further acknowledge and agree that electronically transmitted documents bearing non -original signatures will not be accepted for recording and that the parties will provide originally executed documents to Escrow Holder for such purpose. Escrow Holder is authorized to utilize documents which have been signed by Buyer and Seller in counterparts. G \Econ Development\Martin Alvarez \SA Property Sales\Entrada Del Paseo\PD - SARDA - Purchase and Sale Agreement (Entrada Del Paseo) doc 5 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 7.9 Costs of Escrow and Closing Costs. Seller shall pay all of the Escrow Holder's fee, the costs and expenses associated with the Title Policy as described in Section 4, and any additional closing costs and charges relating to the closing of the sale of the Property. 7.10 Property Taxes and Assessments. Under Seller's ownership, the Property has not been subject to real property taxes or assessments. At the Close of Escrow, Buyer will become liable for all real property taxes and assessments (including any supplemental assessments) allocable to the Property after the Close of Escrow. 7.11 Brokers' Commissions. Neither party has had any contact or dealings regarding the Property, or any communication in connection with the subject matter of this transaction, through any real estate broker or other person who can claim a right to a commission or finder's fee in connection with the sale contemplated herein. If any other broker or finder perfects a claim for a commission or finder's fee based upon any such contact, dealings or communication, then the party through whom such person makes its claim shall indemnify, hold harmless and defend the other party (the "Indemnified Party") from any and all costs, damages, claims, liabilities, losses, or expenses, (including without limitation, reasonable attorneys' fees and disbursements) incurred by the Indemnified Party in defending against the claim. The provisions of this Section shall survive termination of this Agreement and the Close of Escrow. 7.12 Possession. Possession of the Property shall be surrendered to Buyer at the Close of Escrow. 7.13 Report to IRS. After Close of Escrow and prior to the last date on which such report is required to be filed with Internal Revenue Service ("IRS"), and if such report is required pursuant to Section 6045(e) of the Internal Revenue Code, Escrow Holder shall report the gross proceeds of the purchase and sale of the Property to the IRS on Form 1099-B, W-9 or such other form(s) as may be specified by the IRS pursuant to said Section 6045(e). Concurrently with such filing, Escrow Holder shall deliver a copy thereof to Buyer and Seller. 8. Remedies for Default. If Seller defaults under this Agreement, Buyer may, at its option, terminate this Agreement or initiate an action for specific performance of this Agreement. 9. Notices. Any and all notices required or permitted to be given hereunder shall be in writing and shall be (i) personally delivered, or (ii) sent by recognized overnight delivery service, mailed by certified or registered mail, return receipt requested, postage prepaid. Any such notice or communication shall be effective when received by the addressee or upon refusal of such delivery to the parties at the addresses indicated below: G.\Econ Development\Martin Alvarez\SA Property Sales\Entrada Del Paseo\PD - SARDA - Purchase and Sale Agreement (Entrada Del Paseo) doc 6 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 To Seller: To Buyer: Successor Agency of the Palm Desert Redevelopment Agency c/o City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Executive Director City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Manager Any party may change its address by a notice given to the other party in the manner set forth above. 10. Miscellaneous. 10.1 Integration. This Agreement supersedes all prior agreements and understandings between the parties relating to the subject matter hereof. Neither of the parties has relied upon any oral or written representation or oral or written information given to it by any representative of the other party. 10.2 Binding Effect. This Agreement shall bind and inure to the benefit of the parties, their respective heirs, successors and assigns. 10.3 Amendment/Modification. No change or modification of the terms or provisions of this Agreement shall be deemed valid unless in writing and signed by both parties. 10.4 Governing LawNenue. This Agreement shall be construed, interpreted and applied in accordance with the laws of the State of California. Any litigation or arbitration regarding the Property or this Agreement will be brought in Riverside County Superior Court or conducted in Riverside County. 10.5 Business Days. Reference herein to "business days" means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of California or in the City of Palm Desert. 10.6 Waiver. No waiver of any breach or default shall be construed as a continuing waiver of any provision or as a waiver of any other or subsequent breach of any provision contained in this Agreement. 10.7 Attorneys' Fees. In the event of any action or proceeding to enforce or construe any of the provisions of this Agreement, the prevailing party in any such action or proceeding shall be entitled to reasonable attorneys' fees and costs. G.\Econ Development\Martin Alvarez\SA Property Sales\Entrada Del Paseo\PD - SARDA - Purchase and Sale Agreement (Entrada Del Paseo) doc 7 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 10.8 Assianabilitv. Any assignment of Buyer's rights under this Agreement shall require the prior written consent of Seller, which Seller may grant or withhold in its sole discretion. 10.9 Time of the Essence. Time is of the essence of this Agreement. 10.10 Escrow Agent. Escrow Agent shall conduct the Close of Escrow in accordance with the terms and provisions of the escrow instructions to be given to Escrow Agent by the parties in a form consistent with this Agreement. To the extent of any conflict or inconsistency between the terms and provisions of this Agreement and the escrow instructions, the terms of this Agreement shall control. 10.11 Exhibits. All Exhibits which are referred to herein and which are attached hereto or bound separately and initialed by the parties are expressly made and constitute a part of this Agreement. 10.12 Counterparts. This Agreement may be executed in counterparts and when so executed by the parties, shall become binding upon them and each such counterpart will be an original document. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE FOLLOWS G \Econ Development\Martin Alvarez\SA Property Sales\Entrada Del Paseo\PD - SARDA - Purchase and Sale Agreement (Entrada Del Paseo).doc 8 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 SELLER: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By: Name: John M. Wohlmuth Its: Executive Director BUYER: CITY OF PALM DESERT, a California municipal corporation By: John M. Wohlmuth, City Manager ATTEST: APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP Rachelle Klassen, City Clerk David J. Erwin, City Attorney G \Econ Development\Martin Alvarez\SA Property Sales\Entrada Del Paseo\PD - SARDA - Purchase and Sale Agreement (Entrada Del Paseo) doc 9 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 CONSENT AND ACKNOWLEDGMENT OF ESCROW HOLDER Escrow Holder hereby agrees to (i) accept the foregoing Agreement, (ii) act as the Escrow Holder under said Agreement and (iii) be bound by said Agreement in the performance of its duties as Escrow Holder. Escrow Holder acknowledges receipt on the date hereof of originals or counterparts of the foregoing Agreement fully executed by Seller and Buyer. Dated: Escrow Holder advises the parties that the date of the Opening of Escrow is , 2014. , 2014 FORESITE ESCROW By: Its: Escrow Officer G \Econ Development\Martin Alvarez\SA Property Sales\Entrada Del Paseo\PD - SARDA - Purchase and Sale Agreement (Entrada Del Paseo) doc 10 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: Exhibit A 72500 00000\9420714.1 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 EXHIBIT A LEGAL DESCRIPTION (APN: 640-370-016) THAT CERTAIN PORTION OF LAND SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS: PARCEL l: ALL THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 19, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE END MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID SOUTHWEST QUARTER; THENCE SOUTH 89°14'36" WEST ALONG THE SOUTH LINE OF SAID SOUTHWEST QUARTER A DISTANCE OF 5.73 FEET TO THE WESTERLY LINE OF THE COACHELLA VALLEY COUNTY WATER DISTRICT STORM WATER CHANNEL RIGHT OF WAY (BEING 150.00 FEET WIDE) AND THE TRUE PO:NT OP BEGINNING; THENCE CONTINUING SOUTH 89°14'36" WEST ALONG SAID SOUTH LINE TO THE SOUTHWEST CORNER OF SAID SOUTHWEST QUARTER; THENCE IN A NORTHERLY DIRECTION ALONG THE WEST LINE OF SAID SOUTHWEST QUARTER A DISTANCE OF 500.00 FEET; THENCE NORTH 89°14'36" EAST AND PARALLEL TO THE SOUTH LINE OF SAID SOUTHWEST QUARTER TO THE WESTERLY LINE OF SAID COACHELLA VALLEY COUNTY WATER DISTRICT STORM WATER CHANNEL RIGHT OF LAY (BEING 150.00 FEET WIDE); THENCE IN A SOUTHEASTERLY DIRECTION ALONG SAID WESTERLY RIGHT OF WAY TO THE SOUTHLINE OF SAID SOUTHWEST QUARTER AND THE TRUE POINT OF BEGINNING; EXCEPTION THEREFROM THE SOUTHERLY 30.00 FEET AND THE EASTERLY 30.00 FEET FOR ROAD AND UTILITY PURPOSES; ALSO EXCEPTING THEREFROM THAT PORTION LYING WITHIN ABOVE DESCRIBED PARCEL 1 AS CONVEYED TO THE COACHELLA VALLEY COUNTY WATER DISTRICT BY DEED RECORDED JUNE 10, 1987 AS INSTRUMENT NO. 163487 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 19 AND THAT PORTION OF THE NORTHWEST QUARTER OF SECTION 30, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS: RESOLUTION NO. OB-106 CONTRACT NO. SA34050 BEGINNING AT THE INTERSECTION OF WILLOW STREET AND GREENE WAY OF TRACT NO. 4380-1, AS SHOWN BY MAP ON FILE IN BOOK 81 PAGE 11, OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; THENCE SOUTH 87°23'51" WEST 322.33 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 10°26'00" EAST 76.13 FEET TO THE BEGINNING OF A CURVE WHOSE RADIUS BEARS SOUTH 72°28' 16" WEST AT THIS POINT, SAID POINT BEING ON THE WESTERLY RIGHT OF WAY LINE OF THE PALM VALLEY STORMWATER CHANNEL; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE, CONCAVE TO THE RIGHT, HAVING A RADIUS OF 510.00 FEET THROUGH A CENTRAL ANGLE OF 17°00'00" A DISTANCE OF 151.32 FEET, SAID CURVE BEING THE WESTERLY RIGHT OF WAY LINE OF SAID PALM VALLEY STORM WATER CHANNEL; THENCE NORTH 26°49'59" WEST 82.96 FEET TO THE TRUE POINT OF BEGINNING. PARCEL 2: AN EASEMENT FOR INGRESS AND EGRESS OVER THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 19, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, AND OVER THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 30, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS: BEING THE SOUTH 30.00 FEET (MEASURED AT RIGHT ANGLES) OF THE SOUTHEAST QUARTER OF SAID SECTION 19, AND BEING THE NORTH 30.00 FEET (MEASURED AT RIGHT ANGLES) OF THE NORTHEAST QUARTER OF SAID SECTION 30, BOTH BEING BOUNDED ON THE EAST BY THE WESTERLY RIGHT OF WAY LINE OF WILLOW STREET (66 FEET WIDE) AS DEEDED TO THE COUNTY OF RIVERSIDE FEBRUARY, 1965, AS INSTRUMENT NO. 29434 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, AND BOUNDED ON THE WEST BY THE EASTERLY RIGHT OF WAY LINE OF COACHELLA VALLEY COUNTY WATER DISTRICT FLOOD CONTROL RIGHT OF WAY (150 FEET WIDE). PARCEL 3: THE NORTH HALF OF GOVERNMENT LOT 12 IN THE WEST HALF OF SECTION 30, AS SHOWN ON DEPENDENT RESURVEY AND SUBDIVISION OF SECTION 30, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE ON MAY 31, 1950; EXCEPTING AND RESERVING TO THE UNITED STATES SUCH OIL, GAS AND ALL OTHER MINERAL DEPOSITS, TOGETHER WITH THE RIGHTS TO PROSPECT FOR, MINE AND REMOVE THE SAME, AS WERE REQUIRED TO BE RESERVED TO THE UNITED STATES BY THE ACT OF JUNE 1, 1938 (52 STAT. 609) AS AMENDED, AND AS RESERVED IN THE PATENT FROM THE UNITED STATES TO NAHUM VINCENT PARSONS RECORDED NOVEMBER 3, 1952 IN BOOK 1413 PAGE 189 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. RESOLUTION NO. OB-106 CONTRACT NO. SA34O5O EXHIBIT B GRANT DEED [See Attached] Exhibit 1 to Grant Deed 72500.00000\9420714.1 RESOLUTION NO. OB-106 CONTRACT NO. SA34050 Exhibit "B" Form of Grant Deed RECORDING REQUESTED BY: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY c/o CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Executive Director WHEN RECORDED RETURN TO: CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: City Clerk Exempt from Recording Fees Pursuant to G.C. 6103 APN: 640-370-016 Above Space for Recorder's Use Documentary transfer tax is $0.00 Exempt from Documentary Transfer Taxes Pursuant to R & T Code Section 11922 GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, a public entity ("Grantor"), hereby grants to CITY OF PALM DESERT, a California municipal corporation ("Grantee"), the following described real property (the "Property") situated in the City of Palm Desert, County of Riverside, State of California: See Exhibit A attached hereto. AND excepting therefrom any public rights of way or easements. IN WITNESS WHEREOF, Grantor has caused its name to be affixed hereto and this instrument to be executed by its duly authorized officer. DATED: , 2014 GRANTOR: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By: Name: John M. Wohlmuth Its: Executive Director RESOLUTION NO. OB-106 CONTRACT NO. SA34050 ACKNOWLEDGEMENT STATE OF CALIFORNIA ) COUNTY OF On before me, Notary Public, personally appeared 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. Signature (Seal) RESOLUTION NO. OB-106 CONTRACT NO. SA34050 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: RESOLUTION NO. OB-106 CONTRACT NO. SA34050 EXHIBIT A LEGAL DESCRIPTION (APN: 640-370-016) THAT CERTAIN PORTION OF LAND SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS: PARCEL l: ALL THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 19, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE END MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID SOUTHWEST QUARTER; THENCE SOUTH 89°14'36" WEST ALONG THE SOUTH LINE OF SAID SOUTHWEST QUARTER A DISTANCE OF 5.73 FEET TO THE WESTERLY LINE OF THE COACHELLA VALLEY COUNTY WATER DISTRICT STORM WATER CHANNEL RIGHT OF WAY (BEING 150.00 FEET WIDE) AND THE TRUE POINT OP BEGINNING; THENCE CONTINUING SOUTH 89°14'36" WEST ALONG SAID SOUTH LINE TO THE SOUTHWEST CORNER OF SAID SOUTHWEST QUARTER; THENCE IN A NORTHERLY DIRECTION ALONG THE WEST LINE OF SAID SOUTHWEST QUARTER A DISTANCE OF 500.00 FEET; THENCE NORTH 89°14'36" EAST AND PARALLEL TO THE SOUTH LINE OF SAID SOUTHWEST QUARTER TO THE WESTERLY LINE OF SAID COACHELLA VALLEY COUNTY WATER DISTRICT STORM WATER CHANNEL RIGHT OF LAY (BEING 150.00 FEET WIDE); THENCE IN A SOUTHEASTERLY DIRECTION ALONG SAID WESTERLY RIGHT OF WAY TO THE SOUTHLINE OF SAID SOUTHWEST QUARTER AND THE TRUE POINT OF BEGINNING; EXCEPTION THEREFROM THE SOUTHERLY 30.00 FEET AND THE EASTERLY 30.00 FEET FOR ROAD AND UTILITY PURPOSES; ALSO EXCEPTING THEREFROM THAT PORTION LYING WITHIN ABOVE DESCRIBED PARCEL 1 AS CONVEYED TO THE COACHELLA VALLEY COUNTY WATER DISTRICT BY DEED RECORDED JUNE 10, 1987 AS INSTRUMENT NO. 163487 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 19 AND THAT PORTION OF THE NORTHWEST QUARTER OF SECTION 30, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND :MERIDIAN, DESCRIBED AS FOLLOWS: RESOLUTION NO. OB-106 CONTRACT NO. SA34050 BEGINNING AT THE INTERSECTION OF WILLOW STREET AND GREENE WAY OF TRACT NO. 4380-1, AS SHOWN BY MAP ON FILE IN BOOK 81 PAGE 11, OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; THENCE SOUTH 87°23'5l" WEST 322.33 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 10°26'00" EAST 76.13 FEET TO THE BEGINNING OF A CURVE WHOSE RADIUS BEARS SOUTH 72°28'16" WEST AT THIS POINT, SAID POINT BEING ON THE WESTERLY RIGHT OF WAY LINE OF THE PALM VALLEY STORMWATER CHANNEL; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE, CONCAVE TO THE RIGHT, HAVING A RADIUS OF 510.00 FEET THROUGH A CENTRAL ANGLE OF 17°00'00" A DISTANCE OF 151.32 FEET, SAID CURVE BEING THE WESTERLY RIGHT OF WAY LINE OF SAID PALM VALLEY STORMWATER CHANNEL; THENCE NORTH 26°49'59" WEST 82.96 FEET TO THE TRUE POINT OF BEGINNING. PARCEL 2: AN EASEMENT FOR INGRESS AND EGRESS OVER THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 19, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, AND OVER THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 30, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS: BEING THE SOUTH 30.00 FEET (MEASURED AT RIGHT ANGLES) OF THE SOUTHEAST QUARTER OF SAID SECTION 19, AND BEING THE NORTH 30.00 FEET (MEASURED AT RIGHT ANGLES) OF THE NORTHEAST QUARTER OF SAID SECTION 30, BOTH BEING BOUNDED ON THE EAST BY THE WESTERLY RIGHT OF WAY LINE OF WILLOW STREET (66 FEET WIDE) AS DEEDED TO THE COUNTY OF RIVERSIDE FEBRUARY, 1965, AS INSTRUMENT NO. 29434 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, AND BOUNDED ON THE WEST BY THE EASTERLY RIGHT OF WAY LINE OF COACHELLA VALLEY COUNTY WATER DISTRICT FLOOD CONTROL RIGHT OF WAY (150 FEET WIDE). PARCEL 3: THE NORTH HALF OF GOVERNMENT LOT 12 IN THE WEST HALF OF SECTION 30, AS SHOWN ON DEPENDENT RESURVEY AND SUBDIVISION OF SECTION 30, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED IN THE DISTRICT LAND OFFICE ON MAY 31, 1950; EXCEPTING AND RESERVING TO THE UNITED STATES SUCH OIL, GAS AND ALL OTHER MINERAL DEPOSITS, TOGETHER WITH THE RIGHTS TO PROSPECT FOR, MINE AND REMOVE THE SAME, AS WERE REQUIRED TO BE RESERVED TO THE UNITED STATES BY THE ACT OF TUNE 1, 1938 (52 STAT. 609) AS AMENDED, AND AS RESERVED IN THE PATENT FROM THE UNITED STATES TO NAHUM VINCENT PARSONS RECORDED NOVEMBER 3, 1952 IN BOOK 1413 PAGE 189 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. APPRAISAL REPORT MARKET VALUE STUDY VACANT LAND PARCEL APN: 640-370-016 ENTRADA DEL PASEO PALM DESERT, CALIFORNIA Date of Report November 4, 2014 Effective Date of Appraisal November 3, 2014 Prepared for CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, California 92260 Prepared by Scott A. Lidgard, MAI, CCIM LIDGARD AND ASSOCIATES, INC. 2492 North Santiago Boulevard Orange, California 92867-1862 Report Reference No. 7538 LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS November 4, 2014 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: Martin C. Alvarez Director of Economic Development Subject: Market Value Study Vacant Land Parcel APN: 640-370-016 Entrada Del Paseo Palm Desert, California In accordance with your request and authorization, I have completed an appraisal 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, (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 is located within the quadrant bounded by Highway 1 1 1, Painters Path, El Paseo, and the Palm Valley Storm Channel, on the north, south, east, and west, respectively, within the City of Palm Desert. The parcel has an interior (versus corner) location within the Entrada Del Paseo master planned development, irregular land configuration, effectively level topography, and contains 29,621 square feet of land area. The subject property is currently located within the OP (office professional) zone of the City of Palm Desert. The general plan land use designation is C-OP (commercial professional office). A zone change is presently being processed wherein the subject zoning will be changed to P (public). The subject property has been considered and appraised herein based on the extraordinary assumption of the public zone classification. Long Beach Office: 3353 Linden Avenue Suite 200 Long Beach, CA 90807 - 4503 Orange County Office: 2592 N. Santiago Blvd. Orange, CA 92867 - 1862 Telephone.. (562) 988-2926 (714) 633-8441 Facsimile: (714) 633-8449 T.TTU ARTS AAJit ACC(1['TAT1 Q ��wrr�alrrlu A trrrrvrrwri er trrf rtir rrr art %lrvl trim City of Palm Desert Attention: Martin C. Alvarez Director of Economic Development November 4, 2014 Page 2 The purpose and intent of the P land use district is to provide for the orderly establishment of public facilities, expansion of their operations, or change in the use of lands owned, leased, or otherwise controlled by governmental agencies, and for the orderly establishment of quasi -public institutional uses. The public zone classification severely limits the permitted uses and commercial developability of the site. Said condition has a negative impact on the market value of the underlying land. 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 subject property based on the extraordinary assumption of public institution zoning. Market value as defined in Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) is defined as follows: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby. 1. Buyer and seller are typically motivated; 2 Both parties are well informed or well advised, and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." An extraordinary assumption is defined in the Dictionary of Real Estate Appraisal, Fourth Edition, Page 106-107, published by the Appraisal Institute as An assumption, directly related to a specific assignment, which, if found to be false, could a/ter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information 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 T _MO ATM AATil A QQ bOTA99 ltw�� ifPah.rin 4 ,.,r.vlli4Yl ,,sn! f f SWta1nI ` City of Palm Desert Attention: Martin C. Alvarez Director of Economic Development November 4, 2014 Page 3 used in an analysis." In the event conditions relating to the extraordinary assumption set forth above, do not materialize, the final conclusion of value set forth herein may or may not be credible. The intended use of this appraisal report is to assist the City of Palm Desert in potential sale negotiations with a private developer as well as to substantiate the State's equity interest in the property. Intended users are City officials and consultants thereof for the explicit purpose indicated above. This report is not intended to be distributed to, or relied upon by, third parties, except as provided for herein. After considering the various factors which influence value, the market value of the subject property, as of November 3, 2014, is as follows: TWO HUNDRED SEVEN THOUSAND DOLLARS $207,000. 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, LIDGARD AND ASSOCIATES, INC. Scott A. Lidgard, MAI, CCIM Certified General Real Estate Appraiser California Certification No. AG 004014 Renewal Date: March 13, 2016 SAL:sp T _Tiff'! ATPT A71J11 A tCC[' C TAPEIQ i,Prnrr% /t'visrlrs dsserevriwrl srsesl frlsnrsv»aisrlesnts 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 Commercial Land Value Indicators Market Data Location Map Commercial Land Sales Data and Photographs LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS TABLE OF CONTENTS (Continued) ADDENDA Additional Subject Property Photographs Planning Commission Staff Report Coachella Valley Region Description Qualifications of Appraiser LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS PREFACE LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS EXECUTIVE $UMMARY PURPOSE OF APPRAISAL: CLIENT IDENTIFICATION: PROPERTY ADDRESS: APPARENT VESTEE: SITE DESCRIPTION: Land area: Land shape: Zoning: Soil contamination: Present use: Highest and best use: Assessor's No.: Market value of the subject property based on the extraordinary assumption of public institu- tion zoning. City of Palm Desert No situs address; property located in Palm De- sert, California Successor Agency to the Palm Desert Rede- velopment Agency 29,621 square feet, per Assessor's records. Irregular land configuration. OP (office professional). 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. Vacant land. Commercial office development. 640-370-016 EXISTING IMPROVEMENTS: There are no building or other on -site im- provements located within the boundaries of the subject property. DATE OF VALUE: DATE OF REPORT: VALUATION ANALYSIS: Sales Comparison Approach: Cost -Summation Approach: Income Capitalization Approach: November 3, 2014 November 4, 2014 $207,000. Not applicable. Not applicable. LIDGARD AND ASSOCIATES APPRAISFRS-CONSULTANTS 1 EXECUTIVE SUMMARY (Continued) RECONCILIATION: 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. FINAL ESTIMATE OF VALUE: $207,000. An extraordinary assumption is defined in the Dictionary of Real Estate Ap- praisal, Fourth Edition, Page 106-107, published by the Appraisal Institute as "An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physi- cal, legal, or economic characteristics of the subject property; or about con- ditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis." In the event conditions relat- ing to the extraordinary assumption set forth above, do not materialize, the final conclusion of value set forth herein may or may not be credible. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 2 DATE OF VALUE The date of value employed in this report, and all opinions and computations expressed herein, are based on November 3, 2014, said date being gener- ally concurrent with the inspection of the subject property and valuation analysis process. PURPO$E OF THLAPPRAI$AL 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 Palm Desert in potential sale negotiations with a private developer as well as to substanti- ate the State's equity interest in the property. Intended users are City offi- cials and consultants thereof for the explicit purpose indicated above. This report is not intended to be distributed to, or relied upon by, third parties, ex- cept as provided for herein. PROPERTY RIQHTS APPRAISED The property rights appraised herein are those of the unencumbered fee simple interest. Fee simple is defined in the 12t`' Edition of The Aooraisal 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- inent domain, police power, and escheat" LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 3 CERTIFICATION 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 common area drive aisle of the Entrada Del Paseo master planned development. I have no present or contemplated future interest in the real estate which is the sub- ject of this appraisal report. Also, I have no personal interest or bias with re- spect to the subject matter of this appraisal report, or the parties involved 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 con- tained in this appraisal report, upon which the analyses, opinions, and conclu- sions 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 re- port, I have completed the requirements of the continuing education program 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 properties, and report preparation. No one other than the undersigned prepared the analyses, conclusions, and opinions of this appraisal study. Scott A. Lidgard, MAI, CCIM Certified General Real Estate Appraiser California Certification No. AG 004014 Renewal Date: March 13, 2016 Date: November 4, 2014 LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 4 COPE OF THE APPRAISAL 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 Prop- erty 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 5 SCOPE OF THg 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 triplicate, in summation of all the activities outlined above. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 6 AS$UMPTIONS AND LIMITING CONDITIONa 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 contains sufficient information for the intended use and users for which it was written. 4. That title to the subject properties 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 properties have been appraised as though under responsible ownership. The legal descriptions are assumed accurate. LIDGARD AND ASSOCIATES APPRAISI.RS-CONSULTANTS 7 ASSUMPTIONS AND LIMITING QONDITIOI. (Continued) 5. That the appraiser assumes there are no hidden or unap- parent conditions of the subject properties, 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 proper- ties appraised are assumed to meet all governmental codes, requirements, and restrictions, unless otherwise stated. 6. That no soils report, topographical mapping, or survey of the subject properties was provided to the appraiser; therefore information, if any, provided by other qualified sourcesper- taining to these matters is believed accurate, but no liability is assumed for such matters. Further, information, esti- mates and opinions furnished by others and contained in this report pertaining to the subject properties and market data were obtained from sources considered reliable and are believed to be true and correct. No responsibility, how- ever, for the accuracy of such items can be assumed by the appraiser. 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 properties. 8. 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 APPRAISERS -CONSULTANTS 8 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 properties 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 properties. 12. That the appraiser has conducted a visual inspection of the subject properties 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 properties, 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 properties 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 properties LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 9 ASSUMPTION$ 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 ap- praiser, real estate economist, real estate broker, real estate salesman, property manager, valuation consultant, invest- ment counselor, or others, without the written consent and approval of Scott A. Lidgard. 18. That the subject property has been appraised herein based on the extraordinary assumption of public institution zoning. 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. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 10 TERM$ AND DEFINITION 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): Market value is sometimes referred to as Fair Market Value; the latter is a legal term, and a common synonym of Market Value. Market value as de- fined in Title XI of the Financial Institutions Reform, Recovery and Enforce- ment Act of 1989 (FIRREA) is defined as follows: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowl- edgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buy- er under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open mar- ket; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the prop- erty sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." 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. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 11 TERMS AND DEFINITIONS (Continued) 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. 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- ble probability of being permitted under applicable laws and ordinances, and (3) be appropriate and feasible under a reasonable planning, zoning, and land use concept. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 12 SUBJECT PROPERTY DESCRIPTION LIDGARD AND ASSOCIATES A PPR AIS F. RS-CONSULTANTS SITE DESCRIPTION LOCATION: The subject property is located within the quadrant bounded by Highway 111, Painters Path, El Paseo, and the Palm Valley Storm Channel, on the north, south, east, and west, respectively, within the corporate limits of the City of Palm Desert. MAP COORDINATES: Thomas Bros. Map Page 848, Grid D-1. CENSUS TRACT: Property located in Government Census Tract 451.16. LAND SHAPE: Irregular land configuration; see highlighted portion of plat map on the opposite page. DIMENSIONS: Various and numerous dimensions. LAND AREA: 29,621 square feet, per Assessor's records. 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 rainy season. SOIL STABILITY: Appears to be adequate based upon the existing development at the subject site, as well as surrounding developments; it should be noted that a soils report was not provided for review. SOIL CONTAMINATION: None known or observed, however, a soils study has not been provided for review. The subject property has been appraised as though free of soil contaminants. ACCESS: Primary vehicular access to the subject property is via reciprocal ingress/egress drive aisles extending to Highway 111, Painters Path, and El Paseo. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 2 SITE DESCRIPTION (Continued) RIGHTS -OF -WAY WIDTH: STREET SURFACING: CURB AND GUTTER: SIDEWALK: STREET LIGHTS: PUBLIC UTILITIES: SANITARY SEWER: ENCROACHMENTS: EASEMENTS: ILLEGAL USES: EARTHQUAKE FAULT: Highway 1 11: El Paseo: Painters Path: 140± feet. 100± feet. 70± feet. Asphalt paved traffic lanes. Concrete curb and gutter (each side of each street). Concrete sidewalk (each side of each street). Mounted on ornamental standards. Water, gas, electric power, and telephone are available at the site. Available to site. None known, or observed during the field inspection, however, a survey of the subject property was not provided for review. 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 the existing or future highest and best use of the subject property. It is further assumed there are no "cross -lot" or "blanket" easements. None observed. The subject property is not located within an earthquake fault study zone. The greater Southern California area, however, is gener- raily prone to earthquakes and other seismic disturbances. No seismic or geological studies have been provided for review. No responsibility is assumed for the possible impact on the subject property of seismic activity and/or earthquakes. LIDGARD AND ASSOCIATES APPRAISFRS-CONSULTANTS 3 SITE DESCRIPTION (Continued) PRESENT USE: Vacant land. ZONING: The subject property is currently located within the OP (office professional) zone of the City of Palm Desert. The general plan land use designation is C-OP (commercial professional office). A zone change is presently being processed wherein the subject zoning will be changed to P (public). The City case number is CZ 14-190; the Planning Commission Staff Report is dated August 19, 2014. Reference the report set forth in the Addenda Section. Based on discussions with Tony Bagato, Principal Planner, there is a high probability of obtaining approval from the council. The subject property has been considered and appraised herein based on the extraordinary assumption of the public zone classification. The purpose and intent of the P land use district is to provide for the orderly establishment of public facilities, expansion of their operations, or change in the use of lands owned, leased, or otherwise controlled by governmental agencies, and for the orderly establishment of quasi -public institutional uses. Most of the permitted uses are subject to either the issuance of an administrative use permit or conditional use permit. Said uses include apiaries, botanical conservatories, educational institutions, religious institutions, kennels, public parks, commercial recreation facilities, private and public recreation facilities, medical hospitals, government offices, outdoor sales, public and utility service facilities, and recording studios. There are no minimum lot size or minimum yard requirements. The maximum building height is 35 feet. Development of the site LIDGARD AND ASSOCIATES APPRAISRRS-CONSULTANTS 4 BITE DESCRIPTION (Continued) ZONING: (Continued) HIGHEST AND BEST USE: requires a design review process wherein specific development standards will be established. 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 IMPROVEMENTS COMMENT: ASSESSMENT DATA ASSESSOR'S PARCEL NO.: ASSESSED VALUATIONS: TAX CODE AREA: TAX YEAR: REAL ESTATE TAXES: SPECIAL ASSESSMENTS: OWNER$HIP HISTORY COMMENT: The southwesterly portion of the site is improved with a portion of the larger reciprocal automobile parking and drive aisle areas. The majority of the site consists of vacant land. No value, either positive or negative has been assigned to existing improvements. The scope of the appraisal study is limited to the underlying land parcel. 640-370-016 Not applicable; vested with public entity. 18031 2013-2014 Not applicable; vested with public entity.* None known. * Real estate taxes will be based upon approximately 1.15% of the current cash value placed on the subject property by the Riverside County Assessor, in the event the subject property is sold to a private party (per Proposition 13). A quit claim deed conveying title from the City of Palm Desert to the Successor Agency to the Palm Desert Redevelopment Agency, recorded December 11, 2012 as Document No. 601611. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 5 OWNERSHIP HISTORY (Continued) COMMENT: (Continued) The subject property has not been marketed for sale through the local Multiple Listing Service in recent years. NEIGHBORHOOD ENVIRONMENT COMMUNITY: The City of Palm Desert was incorporated November 26, 1973 as a general law city, governed under California's State regulations. The City's designation was amended by Citywide referendum in 1997 from a general law to a charter city as a means of preserving the historical principals of self governance. The Palm Desert City Council consists of five councilpersons elected at large for four-year terms; the mayor is appointed from among the council members. The City Council enacts City ordinances, establishes policies, represents the public, maintains inter- governmental relations, and exercises general oversight over the affairs of City government including the Redevelopment Agency, Financing Authority, Housing Authority, and Parking Authority. Palm Desert is situated within the Coachella Valley of the Colorado Desert, surrounded by the San Jacinto Mountains to the east and the Santa Rosa Mountains to the south. Neighboring communities include Indio, Thousand Palms, La Quinta, Indian Wells, Rancho Mirage, Cathedral City, and Palm Springs. Interstate 10 is the primary freeway accessing the greater Coachella Valley region. Predominant intersecting streets entering the City of Palm Desert include Washington Street, Cook Street, Portola Avenue, Monterey Avenue, and Highway 111. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 6 NEIGHBQRHOOD gNVIRONMENT (Continued) COMMUNITY: (Continued) The City of Palm Desert encompasses 27 square miles; the elevation is 220 feet above sea level. The total permanent resident pop- ulation within City limits is reported at 48,445 persons. Seasonal residents are reported at 32,000 persons. The average household size is approximately 2.08 persons. The median household income is $67,328, and the per capita income is $42,339. The Palm Desert labor market is allocated between a primary market area (30-mile radius), and a secondary market area (60- mile radius). The top ten private employers within the City of Palm Desert, as of 2010, are summarized as follows: No. of Emolover Employees JW Marriott Desert Springs Golf Resort 2,000 Universal Protection Services 1,500 Guthy-Renker 825 Securitas 700 Desert Arc 400 Wal-Mart 350 Marriot Desert Springs Villas 304 Macy's 301 Toscana Country Club 300 Bighorn Golf Club 250 There are a total of 17 hotels and 20 shopping centers/plazas located within the City boundaries. The predominant hotels include Embassy Suites, Fairfield Inn, JW Marriott Desert Springs Resort and Spa, Marriott Shadow Ridge, Shadow Mountain Resort, Best Western Palm Desert Resort, etc. Predominant shopping centers include the El Paseo shopping district, Westfield Shoppingtown, Palm Desert, Desert Crossing, and the Desert Gateway anchored by Super Walmart and Sam's Club. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 7 NEIGHBORHOOD ENVIRONMENT (Continued) COMMUNITY: (Continued) LOCATION: LAND USES: The Palm Springs International Airport is the hub of the transportation network for the Coachella Valley region. The airport facility serves nine airlines including four major and five regional carriers. Recent airport improvements include a 60,000 square foot terminal building, expansion of the runway, and state-of-the-art taxi/bus holding facilities. The Union Pacific Railroad runs parallel to Interstate 10, and offers Amtrak trans- continental service. Bus transportation within the City limits is provided by Greyhound and Sunline Systems. The Coachella Valley region offers a wide variety of cultural, recreational, educational, and entertainment options. The subject property is located toward the westerly -center portion of the City of Palm Desert within the master planned commercial development commonly known as the Entrada Del Paseo. The development comprises several pad surrounded by the Eric Johnson Memorial Gardens. Existing uses include the Quistot French Restaurant, La Spiga Italian Restaurant, Palm Springs Art Museum, Chamber of Commerce, and the Henderson Building. Other land uses within the immediate subject vicinity include the Westfield shopping center, Desert Crossing shopping center, El Paseo upscale commercial retail district, along with numerous single family residential subdivisions and resort communities. Numerous commercial retail uses are located along the Highway 111 corridor. Predominant land uses include College of the Desert campus, Palm Desert Civic Center, Civic Center Park, Cook Sports Complex, Bob Hope Cultural Center, Hahn LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 8 NEIGHBQRHOOD ENVIRONMENT (Continued) LAND USES: (Continued) Amphitheater, Palm Desert Skate Park, Monterey Country Club, Rancho Los Palmas Country Club, Desert Crossing Shopping Center, Stone Eagle Golf Club, Shadow Mountain Golf Club, El Dorado Country Club, Ironwood Country Club, Big Horn Golf Club, along with the Marrakesh Country Club. BUILT-UP: OCCUPANCY: PRICE RANGE: Based on a tour of the general subject vicinity, the overall compatibility of existing land uses is rated average. No substantial adverse conditions were noted which would have a measurable impact on the value of the subject property. Effectively 65% built-up. Residential: Commercial: Industrial: 55±% owners 45±% tenants 30±% owners 70±% tenants 35±% owners 65±% tenants Commercial land parcels zoned for retail use generally range from $15.00 to exceeding $30.00 per square foot of land area. Land parcels zoned for commercial office use generally range in value from $6.00 to $10.00 per square foot. The upper range of value pertains primarily to prominent commercial corner locations, whereas the lower range consists of large unimproved acreage land parcels. Improved single family residential properties generally range in value from $300,000 to exceeding $600,000. The lower value range primarily consists of 2-bedroom/1-bathroom dwellings, whereas the upper value range includes three and four bedroom dwellings located within resort developments. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 9 NEIGHBORHOOD NVIRONMENT (Continued) PRICE RANGE: (Continued) Multiple family residential properties are within a much broader value range; smaller complexes such as duplexes and triplexes, generally range from $350,000 to exceeding $650,000. Larger multiple family residential complexes range in value in excess of several million dollars. AGE RANGE: PRIDE OF OWNERSHIP: OTHER: Improved commercial properties range in value from approximately $500,000 for single tenant, typically owner -user facilities, to exceeding several million dollars including large multi -tenant commercial facilities anchored by national tenants. Improved single family and low density multiple family residential developments generally range from $250,000 to exceeding $500,000. Improved commercial properties range in value from $500,000 to exceeding $1,000,000. The age range of all types of improved properties is rather broad. Single family residential properties generally range in age from effectively new to exceeding 40 years. There are numerous commercial properties which have been recently built in the immediate area. Overall pride of ownership in the general subject market area, evidenced by an ongoing maintenance program, is rated above average. The availability and adequacy of public facilities, transportation, and commercial retail facilities is rated average. The City of Palm Desert provides police and fire protection to the subject district. LIDGAR.D AND ASSOCIATES APPRAISERS•CONSULTANTS 10 NEIGHOORHOQD ENVIRONMENT (Continued) COMMENT: The reader is referred to a detailed description of the Coachella Valley Region in the Addenda Section. See Valuation Analysis in the following section. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 11 VALUATION ANALYSIS LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS VALVATION ANALYSIS The purpose of this valuation study is the estimation of market value of the unencumbered fee simple interest in the subject property, based on the extraordinary assumption of public institution zoning. An extraordinary assumption is defined in the Dictionary of Real Estate Appraisal, Fourth Edition, Page 106-107, published by the Appraisal Institute as An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information 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 extraordinary assumption set forth above, do not materialize, the final conclusion of value set forth herein may or may not be credible. Prior to the application of the appraisal process, which in this case employs the Sales Comparison Approach as applied to 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. LIDGARD AND ASSOCIATES APPRAISFRS-CONSULTANTS 1 VALUATION ANALYSIS (Continued) HIGHEST AND BEST USE ANALYSIS: (Continued) Physically Possible: (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 LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 2 VALUATION ANALYSIS (Continued) HIGHEST AND BEST USE ANALYSIS: (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 an interior location within the Entrada Del Paseo master planned commercial development situated in close proximity to the El Paseo upscale commercial retail district. The site has an irregular land configuration, effectively level topography, and contains 29,621 square feet of land area. Vehicular and pedestrian accessibility to the subject site is 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 currently located within the OP (office professional) zone of the City of Palm Desert. The general plan land use designation is C-OP (commercial professional office). A zone change is presently being processed wherein the subject zoning will be changed to P (public). The subject property has been considered and appraised herein based on the extraordinary assumption of the public zone classification. The purpose and intent of the P land use district is to provide for the orderly establishment of public facilities, expansion of their operations, or change in the use of lands owned, leased, or otherwise controlled by governmental agencies, and for the orderly establishment of quasi -public institutional uses. The public zone classification severely limits the permitted uses and commercial developability of the site. Said condition has a negative impact on the market value of the underlying land. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 3 VALUATION ANALYST* (Continued) HIGHEST AND BEST USE ANALYSIS: (Continued) Conclusion: (Continued) Based on the demand, physical characteristics of the site, particularly with respect to the limited permissible uses, it is the appraiser's opinion that the maximally productive use, and therefore, the highest and best use of the subject land, as if vacant, is public institution development. The subject property has been considered and appraised herein accordingly. 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 LIDGARD AND ASSOCIATES APPRAlSFRS-CONSULTANTS 4 VALUATION ANALYSIS (Continued) VALUATION METHODS: (Continued) 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. Inasmuch as the subject property consists of an effectively vacant land parcel, the Sales Comparison Approach, as applied to 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 (commercial 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 commercial 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 commercial properties, as well as information obtained from various sources which include the following: LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 5 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) • Owners: Interviews were conducted with owners of commercial 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. • 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) property tax structure and assessment districts. • Published data: Information was gathered and studied regarding population, unemployment levels, employment centers, commercial 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 as if vacant and readily available for development. Street Data Date Zoning Land Size Alley Corner Frontage Sale Price $ Per SF A. 2-13 N-BP 15,682 sf no yes 200 feet $215,000. $13.71 NWC Dinah Shore Dr. and Cathedral Canyon Dr., Cathedral City B. 6-13 CT 39,640 sf no no 211 feet $500,000. $12.61 S/S Miles Ave., 79.97' E/O Washington St., La Quinta C. 9-13 PCC 50,530 sf no no 399 feet $600,000. $11.87 E/S Date Palm Dr., 125' S/O Victoria Dr., Cathedral City LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 6 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Street Data Date Zoning Land Size Alley Corner Frontage Sale Price $ Per SF D. 12-13 0 42,689 sf no yes 400 feet $286,500. $ 6.71 SEC Bob Hope Dr. and Via Vail, Rancho Mirage E. 3-14 PC-3 61,420 sf no yes 484 feet $950,000. $15.47 NEC Monterey Ave. and 35'" Ave., Palm Desert F. 4-14 CO 99,460 sf* no yes 590 feet $ 750,000. $ 7.54 SWC Frank Sinatra Dr. & Monterey Ave., Rancho Mirage * Net land area, exclusive of future required street dedication. The land sale properties surveyed are located within the general subject vicinity, and represent the most recent comparable land sale transactions. The properties range in size from 15,682 to 99,460 square feet of land area. The overall purchase prices range from $215,000 to $950,000, reflecting a range of $6.71 to $15.47 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 neighboring communities of Cathedral City, La Quinta, and Rancho Mirage. Particular consideration has been assigned to market conditions, general location, as well as 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 2013. 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 February, 2013 and April, 2014. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 7 VALUATION ANALYSIS (Continued) SALES COMPARISONAPPROACH: (Continued) Land Value; (Continued) Market Conditions: (Continued) Virtually all types of real estate within the greater Southern California region experienced relatively high levels of value appreciation throughout 2003 to the first half of 2006. The lack of available properties offered for sale, along with the expansion of subprime lending practices, have been the primary reasons for the unprecedented rate of real estate appreciation, particularly with respect to single family and low density multiple family residential properties. While the appreciation rate pertaining to residential properties began to subside in the middle part of 2006, the market for commercial and industrial properties, along with vacant land parcels continued to thrive. The destabili- zation of the residential market was caused by numerous factors including (1) increasing interest rates, (2) an oversupply of properties available for sale, (3) the tightening of credit markets wherein difficulty of obtaining financing began, and (4) the lack or diminishing confidence level regarding future value appreciation for residential properties. Within the past four to five years, both the local and national economies have suffered a major housing and credit crisis which has had a significant impact on market activity involving all types of real property. The lack of financing options available for purchase and refinancing activities has had a detrimental impact on demand and value. Based on market research findings and analysis of the immediate and general subject vicinity, it is apparent that values of commercial properties continued to appreciate through the last quarter of 2007 despite the meltdown of the residential market. Interviews with active real estate brokers and salespersons indicate that commercial and industrial properties, including vacant land parcels, have declined in value substantially since the peak period. As stated, appreciating conditions occurred throughout the first three quarters of 2007 and leveled off during the fourth quarter thereof. Due to the lack of financing options and overall uncertainty regarding credit markets, the declining trend gained significant momentum in the last quarter of 2008 and throughout the first quarter of 2009. It is apparent that market LIDGARD AND ASSOCIATES APPRAISFRS-CONSULTANTS 8 VALUATION ANALYSIS, (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Market Conditions: (Continued) conditions have stabilized since the second half of 2010. There has been an increase in the demand for vacant land parcels within the past several months. The increased demand has resulted in a slight upward value trend. This condition has been considered in the analysis of the individual land sale properties employed herein. 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. Overall developability. Zoning. Site frontage/depth ratio. Vehicular and pedestrian access. Site prominence and exposure. Vehicular and pedestrian traffic. 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. Quantitative adjustment methodology has been utilized to compare the individual comparable land sale properties to the subject site. Quantitative methodology is based on a comparative analysis for analyzing sale transactions 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. Superior elements of comparability of an individual sale property would reflect a downward adjustment 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 LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 9 VALUATION ANALYSIS (Continued) SALES COMPAR/SON APPROACH: (Continued) Land Value: (Continued) Elements of Comparability; (Continued) accessibility, site conditions, site prominence/exposure, zoning/permitted uses, and land size 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 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 Accessibility: Commercial and industrial properties rely heavily on vehicular accessibility. Generally, corner locations with multiple access points command higher values than interior parcels having single point ingress/egress. 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 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. LIDGARD AND ASSOCIATES APPRAISFRS-CONSULTANTS 10 3ALUATIQN ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Elements of Comparability: (Continued) Site Prominence/Exposure: Commercial retail and office properties, along with certain industrial uses, rely heavily on site prominence/exposure as a means of attracting customers and clients. The advertising exposure along commercial thoroughfares can also be beneficial to industrial and business park oriented properties. In general terms, signalized corner parcels offer superior prominence/exposure than interior sites. Additionally, heavily traveled corridors are preferred by commercial uses over secondary collector streets. The subject property has an interior location within the Entrada Del Paseo master planned development. Consequently, the site does not have commercial exposure. All of the sale properties employed herein are judged superior with respect to site prominence/exposure. 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. Due to the relatively wide range of land areas among the sale properties employed herein, particular consideration has been assigned to land size in the analysis of the subject parcel. Overall 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 LIDGARD AND ASSOCIATES APPRAISFRS-CC NSULTANTS 11 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Elements of Comparability: (Continued) prevailing as of the date of sale. All of the sale properties employed herein are considered having generally similar marketability as the subject property. Sales Comparison Analysis: Following are comments regarding the various sale properties employed herein. Data A Located at the northwest corner of Dinah Shore Drive and Cathedral Canyon Drive, Cathedral City. The site was vacant at the time of sale; the buyer constructed a 7-Eleven convenience store subsequent to the sale. The parcel has a relatively prominent signalized corner location along a heavily traveled commercial corridor, effectively rectangular land configuration, level topography, and contains 15,682 square feet of land area. The purchase price was $215,000, all cash. The deed recorded February 28, 2013, as Document No. 100554. Further details regarding the transaction are summarized as follows: Grantor: Dinah Drive, LLC Grantee: CA7E Cathedral City, LLC Assessor's Parcel No.: 680-441-048, 060 Data B Located on the south side of Miles Avenue, beginning 79.97 feet east of Washington Street, La Quinta. The site is improved with an automobile parking lot which is apparently shared with the adjacent development through reciprocal ingress/egress rights. The westerly portion consists of vacant land available for commercial development. The parcel has an interior (versus corner) location along a heavily traveled commercial corridor with additional frontage along a secondary street, irregular land configuration, generally level topography, and contains 39,640 square feet of land area, net of street dedication. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 12 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Sales Comparison Analysis: (Continued) The property was originally offered for sale at $599,000 and was on the market 301 days. The purchase price was $500,000, all cash. The deed recorded June 20, 2013 as Document No. 295417. Further details regarding the transaction are summarized as follows: Grantor: Pacific Premier Bank Grantee: International Property Solutions, LLC Assessor's Parcel No.: 604-630-012 Data C Located on the east side of Date Palm Drive, beginning 125 feet south of Victoria Drive, Cathedral City. The site was vacant at the time of sale; the buyer constructed a Family Dollar retail stor subsequent to the sale. The parcel has an interior (versus corner) location, rectangular land configuration, generally level topography, and contains 50,530 square feet of land area. The property was originally offered for sale at $600,000 and was on the market 812 days. The purchase price was $600,000, all cash. The deed recorded September 4, 2013 as Document No. 432314. Further details regarding the transaction are summarized as follows: Grantor: Gabriel V. and Patricia Lechuga Grantee: Boos Fund 1-Cathedral City, LLC Assessor's Parcel No.: 673-172-024 Data D Located at the southeast corner of Bob Hope Drive and Via Vail, Rancho Mirage. The site was vacant at the time of sale. The property was acquired by an adjacent property owner; immediate development plans are unknown. The parcel has a relatively nonsignalized double corner location, effectively rectangular land configuration, generally level topography, and contains 42,689 square feet of land area. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 13 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH; (Continued) Land Value: (Continued) Sales Comparison Analysis: (Continued) The property was originally offered for sale at $300,000 and was on the market 390 days. The purchase price was $286,500, all cash. The deed recorded December 9, 2013 as Document No. 571941. Further details regarding the transaction are summarized as follows: Grantor: Victory Christian Center of the Desert Grantee: Vista San Jacinto, LLC Assessor's Parcel No.: 685-060-011 Data E Located at the northeast corner of Monterey Avenue and 35th Avenue, Palm Desert. The site is partially improved with an automobile parking lot; the buyer constructed an Auto Zone retail store subsequent to the sale. The parcel has a corner location, effectively rectangular land configuration, level topography, and contains 61,420 square feet of land area. The purchase price was $950,000, all cash. The deed recorded March 28, 2014, as Document No. 113888. Further details regarding the transaction are summarized as follows: Grantor: RJ Ventures, LLC Grantee: AutoZone, Inc. Assessor's Parcel No.: 694-090-029 Data F Located at the southwest corner of Frank Sinatra Drive and Monterey Avenue, Rancho Mirage. The site was vacant at the time of sale. The buyer intends to construct a medical office building. The parcel has a relatively prominent signalized corner location at the intersection of two heavily traveled commercial thoroughfares with additional street frontage along a secondary street. The site has an effectively rectangular land configuration, generally level topography, and contains 99,460 square feet of land area. LIDGARD AND ASSOCIATES APPRAISIiRS-CONSULTANTS 14 VALUATION ANALYSIS (Continued) SALES COMPARISONAPPROACH:(Continued) Land Value: (Continued) Sales Comparison Analysis: (Continued) The property was originally offered for sale at $1,290,000 and was on the market 572 days. The purchase price was $750,000, all cash. The deed recorded April 22, 2014 as Document No. 145079. Further details regarding the transaction are summarized as follows: Grantor: Peter Solomon, Inc. Grantee: Do Stuff Partnership, LP Assessor's Parcel No.: 685-251-009 Reference the Market Analysis Comparison Grid set forth on the opposite page. The sale properties have been compared to the subject property with consideration assigned to property rights conveyed, date of sale, financing terms, along with the various elements of comparability. By way of review and comparison, the subject property has an interior location within the Entrada Del Paseo master planned commercial development situated in close proximity to the El Paseo upscale commercial retail district. The parcel has an irregular land configuration, effectively level topography, and contains 29,621 square feet of land area. The property has been considered and appraised herein based on the extraordinary assumption of public institution development. Said zone severely limits conventional commercial development. 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 inasmuch as it is most commonly utilized by market participants. The adjusted values indicated by the sale properties are summarized as follows: Data A: $7.54 Data B: $6.94 Data C: $7.12 Data D: $6.04 Data E: $7.73 Data F: $6.79 LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 15 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH; (Continued) Land Value; (Continued) Sales Comparison Analysis: (Continued) The adjusted purchase prices per square foot of land area are within a range of $6.04 and $7.73. The overall comparability adjustments, applicable to the various sale properties, range between a negative 10% and a negative 50%, due primarily to the differences in location, immediate environmental influences, site conditions, land size, along with overall developability. All of the sale properties employed herein were considered helpful in the land value analysis of the subject property. The value indication applicable to the subject parcel is as follows: Rate per SF Reliability Subtotals Data A: $7.54 x 15.0% = $1.13 Data B: $6.94 x 15.0% = 1.04 Data C: $7.12 x 15.0% = 1.07 Data D: $6.04 x 20.0% = 1.21 Data E: $7.73 x 15.0% = 1.16 Data F: $6.79 x 20.0% = 1.36 Totals: 100.0% $6.97 Total indicated unit rate, adjusted: $7.00 In addition to the consummated sale transactions discussed herein, research was expanded to include four reasonably comparable land parcels presently offered for sale within the general subject market area, as follows: Street Days on Data Zoning Land Size Corner Frontaae Askina Price S Per SF Market 1. C-G 42,689 sf yes 610 feet $300,000. $ 7.03 636 SEC Bob Hope Dr. and Via Vail, Rancho Mirage 2. VC 28,998 sf no 203 feet $285,500. $ 9.85 460 N/S Calle Amigo, 200' W/O Desert Club Dr., La Quinta 3. CPD 64,033 sf no 133 feet $725,000. $1 1.32 146 W/S Cook St., 387' N/O University Park Dr., Rancho Mirage 4. GC 56,628 sf yes 327 feet $695,000. $12.27 8 SEC Jefferson St. and 46th Ave., La Quinta LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 16 VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Sales Comparison Analysis: (Continued) The properties surveyed range in size from 28,998 to 106,286 square feet of land area. The overall asking prices range from $285,500 to $975,000, reflecting $7.03 to $12.27 per square foot of land area. The marketing times range between 8 and 636 days. 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 underlying land parcel is estimated at $7.00 per square foot of land area, as follows: 29,621 SF @ $7.00 = $207,347. Adjusted: $207,000. FINAL ESTIMATE OF MARKET VALUE: Based on the foregoing valuation study, the unencumbered fee simple market value of the subject property, based on the extraordinary assumption of public institution zoning, as of the date of value employed herein, is estimated at $207,000. An extraordinary assumption is defined in the Dictionary of Real Estate Appraisal, Fourth Edition, Page 106-107, published by the Appraisal Institute as An assumption, direct/y related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information 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 extraordinary assumption set forth above, do not materialize, the final conclusion of value set forth herein may or may not be credible. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 17 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. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 18 MARKET DATA LIDGARD AND ASSOCIATES APPRAISFRC-CONSULTANTS MARKET DATA SUMMARY COMMERCIAL LAND VALUE INDICATORS: Street Data Date Zoning Land Size Alley Corner Frontaae Sale Price $ Per SF A. 2-13 N-BP 15,682 sf no yes 200 feet $215,000. $13.71 NWC Dinah Shore Dr. and Cathedral Canyon Dr., Cathedral City 6-13 CT 39,640 sf no no 211 feet $500,000. $12.61 S/S Miles Ave., 79.97' E/O Washington St., La Quinta C. 9-13 PCC 50,530 sf no no 399 feet $600,000. $11.87 E/S Date Palm Dr., 125' S/O Victoria Dr., Cathedral City 12-13 0 42,689 sf no yes 400 feet $286,500. $ 6.71 SEC Bob Hope Dr. and Via Vail, Rancho Mirage E. 3-14 PC-3 61,420 sf no yes 484 feet $950,000. $15.47 NEC Monterey Ave. and 35`h Ave., Palm Desert F. 4-14 CO 99,460 sf* no yes 590 feet $ 750,000. $ 7.54 SWC Frank Sinatra Dr. & Monterey Ave., Rancho Mirage * Net land area, exclusive of future required street dedication. L1DGA.RD AND ASSOCIATES APPRAISERS -CONSULTANTS 1 ADDENDA LILX;ARL ANL) AssocAA-rus ♦re811.t k... PLANNING COMMISSION STAFF REPORT LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT PLANNING COMMISSION STAFF REPORT REQUEST: CONSIDERATION OF A CHANGE OF ZONE FROM OFFICE PROFESSIONAL (O.P.) TO PUBLIC (P) FOR A VACANT .68-ACRE PROPERTY LOCATED AT 72-565 HIGHWAY 111, ALSO KNOWN AS APN 640-370-016 SUBMITTED BY: Tony Bagato, Principal Planner APPLICANT: City of Palm Desert CASE NO: CZ 14-190 DATE: August 19, 2014 CONTENTS: 1. Planning Commission Resolution No. 2634 2. Exhibit A, CZ (O.P. to P) 3. Legal Notice Recommendation Waive further reading and adopt Resolution No. 2634 recommending to the City Council approval of CZ 14-190. Backaround A. Property Description: In September 2001, the Planning Commission approved a master plan for a 12-acre property owned by the former Palm Desert Redevelopment Agency. The master plan, known as Entrada del Paseo, included several pads for development and the Eric Johnson Memorial Gardens. Most of the property has been developed, and is currently occupied by Cuistot French Restaurant, La Spiga Italian Restaurant, the Palm Springs Art Museum in Palm Desert, and the Chamber of Commerce in the Henderson Building. One pad is currently vacant and the former Redevelopment Agency must sell the property as part of the dissolution of California redevelopment agencies. COACHELLA VALLEY REGION DESCRIPTION LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS REGIONAL DATA The value of real property is influenced by the attributes and utility of land and physical improvements, as well as inter -relationships of markets and demographic forces, transportation, government, environmental influences and other factors. Said factors influence the location and density of population distribution and activities in certain areas and regions over others. COACHELLA VALLEY REGION: Coachella Valley is located in the easterly portion of the County of Riverside. Coachella Valley consists of 13 individual communities including Palm Springs, Desert Hot Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, Coachella, Bermuda Dunes, Thousand Palms, Mecca, and Thermal. The current population of Coachella Valley is 336,398 persons, which represents a growth of 45.7% since 1990, and 175.5% since 1980. The Coachella Valley population represents approximately 20% of the entire Riverside County population. The current labor work force is estimated at 1 1 1,900± persons, which represents approximately 33% of the entire Coachella Valley population. 17% of the remaining population consists of persons 65 years and older; 25% represents persons 18 years and younger. The demographic make- up of Coachella Valley is summarized as follows: Population by Race Caucasian: African -American: Hispanic: Other: 47.8% 2.0% 46.4% 3.9% Population bvAae Under 18 years: 29.4% 18-44 years: 31.8% 56-65 years: 20.3% 65 & over: 17.4% The population of Coachella Valley is forecasted to increase at a rate of 6% per annum, which rate would more than double the current population in approximately 20 years. The median household income is $31,735; the median family income is $37,119. The per capita income is estimated at $17,347. Tourism and agriculture are major forces in the Coachella Valley's economy. There are over 270 hotels containing approximately 15,800 hotel rooms and over 85 golf courses. The total annual economic impact of tourism is estimated to exceed 1 billion dollars. The agricultural industry accounts for approximately 58,000 acres. The four major crops include grapes, citrus, dates, and vegetables. The total annual economic impact of agriculture is estimated at slightly below 1 billion dollars. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS REGIONAL DATA (Continued) COACHELLA VALLEY REGION: (Continued) While tourism and agriculture are dominant economic forces, the greater Coachella Valley has a relatively diverse economic base. The distribution of work force is segregated among the following industries: Agriculture & mining: Construction: Manufacturing: Education: Wholesale trade: 12,637 11,967 2,550 7,747 1,496 Retail trade: Finance/real estate: Services: Government: Distribution: 23,765 5,589 33,129 6,474 5,434 There are a number of major manufacturing and non -manufacturing firms located within Coachella Valley. The individual corporations, along with their respective products/services, are summarized as follows: Manufacturing Employment. Employers VIAYSS Design MTC Spates Fabricators Menage Furniture Tvoe of Business Medical equipment Marble products Roof trusses Furniture Non -manufacturing Employment: Employers Peter Rabbit Fox Desert Hospital Eisenhower Hospital Renaissance Esmeralda Resort Vons Companies Type of Business Agriculture Health Health Tourism Retail Employers Armtec Products Guy Evans, Inc. Palm Springs Golf Co. U. S. Filter Type of Business Defense Cabinetries Golf equipment Water treatment Employers Marriott Desert Springs Palm Springs School District La Quinta Hotel Westin Mission Hills Resort Sunrise Company Type of Business Tourism Education Tourism Tourism Developer Coachella Valley sits atop a vast underground lake, thus providing an abundant water supply. The average maximum temperature is 107.8° with an average minimum temperature of approximately 53.7°. The average annual rainfall is 5.20 inches. Coachella Valley has three school districts; there are a total of 33 elementary schools, 12 middle schools, and nine high schools. Higher education is provided by (1) College of the Desert, a community college accredited for AA degrees, (2) California State University, San Bernardino -satellite campus, LIDGARD AND ASSOCIATES APPRAISFRS-CONSULTANTS REGIONAL DATA (Continued) COACHELLA VALLEY REGION: (Continued) (3) University of California, Riverside, a one -hour drive from Coachella Valley, (4) the University of California Riverside A. Gary Anderson School of Management, and (5) University of California Riverside Campus in Palm Desert. There is a wide variety of community services and facilities. Medical care is provided by the Desert Hospital, Eisenhower Medical Center, John F. Kennedy Memorial Hospital, Canyon Springs Hospital, and Heart Institute of the Desert. Cultural facilities and special events include the Palm Springs Desert Museum, Annenberg Theater, McCallum Theater (Bob Hope Cultural Center), The Living Desert, National Data Festival, La Quinta Arts Festival, U. S. Polo Open, Palm Springs Film Festival, and a number of annual golf tournaments. Recreational facilities include over 105 golf courses, the Palm Springs Aerial Tramway, polo grounds, natural hiking trails, a water park, casinos, and the newly completed Indian Wells Championship Tennis Facility. Transportation in Coachella Valley is provided for by a variety of means. The Palm Springs Regional Airport has direct service for many major western and midwestern cities. The commercial air carriers include American Airlines, Delta, Northwest, Continental, and Alaska Skywest. The Bermuda Dunes Airport supports commuter flights serving Los Angeles, Ontario, San Diego and Phoenix. Thermal Airport provides a base for privately owned noncommercial aircraft. Passenger rail service is available via Amtrak. Freight rail service is provided by Union Pacific Railroad which offers a direct link -up with the Mexican National Railroad. Bus service is provided by Greyhound Bus Lines. There are a number of trucking lines which serve the Coachella Valley. Primary highways include Interstate 10, State Highway 1 1 1, and State Highway 86. LIDGARD AND ASSOCIATES APPRAISI=.RS-CONSULTANTS QUALIFICATIONS OF APPRAISER LIDGARD AND ASSOCIATES APPRAISFRS-CONSULTANTS BACKGROUND AND OUALIFIQATIONS 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 25 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 Analyst: Market Research Analyst: Market Research Assistant: Office Administrator: Office Assistant: Scott A. Lidgard Jason T. Clayton Jason Boyer Mayra Villegas-Garcia Sarah A. Petty Kelly M. Lidgard PROFESSIONAL ORGANIZATION AFFILIATION 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'$ LICENS Licensed California Real Estate Broker (License No. 00825141). EXPERT WITNE$j Qualified as an expert on Real Property Valuation in the Los Angeles, Orange, San Bernardino, and Riverside County Superior Courts, as well as Federal Bankruptcy Court. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS BACKGROUND AND QUALIFICATIONS (Continued) ACADEMIC BACKGROUND California State University, Fullerton B.A., Business Administration, emphasis in real estate finance. Successfully completed various educational courses and seminars sponsored by the Appraisal Institute, as well as other real estate and business organizations. BUSINES$ AFFILIATION 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. BOARD QF DIREQTORSHIPS: 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 APPRAISAL SERVICES RENDERED: Real estate appraisal services performed on projects for the following public agencies and private corporations, since 1984: Cities: City of Anaheim City of Garden Grove City of Mission Viejo City of Azusa City of Glendora City of Montclair City of Baldwin Park City of Hawaiian Gardens City of Monterey Park City of Bell City of Highland City of Murrieta City of Bellflower City of Huntington Park City of Ontario City of Bell Gardens City of Indio City of Palm Desert City of Brea City of Irvine City of Palm Springs City of Carson City of La Mirada City of Pasadena City of Cathedral City City of La Habra City of Pico Rivera City of Costa Mesa City of La Quinta City of Placentia City of Diamond Bar City of Laguna Hills City of Pomona City of Downey City of Long Beach City of Rancho Mirage City of Fullerton City of Lynwood City of Redondo Beach LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS BACKGROUND AND QUALIFICATIONS (Continued) APPRAISAL SERVICES RENDERED (Continued) Cities: (Continued) City of Rialto City of Riverside City of San Clemente City of San Bernardino City of San Juan Capistrano City of Santa Ana City of Santa Clarita City of Signal Hill City of Stanton City of Tustin City of Upland City of Whittier City of West Covina City of Yorba Linda 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 El 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 LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS BACKGROUND AND QUALIFICATIONS (Continued) APPRAISAL $ERVICE$ 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 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 LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS APPRAISAL REPORT MARKET VALUE STUDY VACANT LAND PARCEL APN: 640-370-016 ENTRADA DEL PASEO PALM DESERT, CALIFORNIA 4 Chappei Rd Michael S Wolfson Park Morningside D 7' Stanford Dr Co tumtta D Country Club Dr Rancho Mirage Frank Sinatra Dr Vista del Sol Frank Sinatra Dr iz �a c O w m C O > Country Club Dr Hovley Ln W Lomas J 4. Blixseth a 4, Mountain Park y Whitewater P S'd� a VynetewAfnr A'svF` Magnesia ?.. °'1� y Fails. %' Merle Dr Neighborhood Park M Ga Ave co 'A ! o rl' °',A�o, ° 111 m Casteliana S . p Magnesia Falls a City Park oP rk View Dr > m rti a c� �F =. y/aring Dr o Catalina Way tu De Anza VV.,,,0a SIN E 0 0 0 Alessart�ra Dr o :.r 1190 rn El Pase a t' to s; 3a E Candlewood Si g. Z Juniper St E' Ironwood St Fairway Dr ro Cap Homme Q / Ralph A.? Willow St 3 ge Dr W Adams Park co - ��t9 ci. 74 Calliandra St Haystack Rp Indian Wells Bel Air Rd 4 Living Desert Wildlife Botanic A1° Cahuilla trio Arroyo.j, to U oostola Ave Foxes'% Country Club Dra 5''' Hovley Ln E 00 42nd Ave 0mi 05 1 15 LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS LJBJECT PROPERTY Aerial view of subject property situated within the quadrant bounded by Highway 111, Painters Path, El Paseo, and the Palm Valley Storm Channel, on the north, south, east, and west, respectively, within the City of Palm Desert. See additional photographs in the Addenda Section. APPARENT VESTEE: PROPERTY ADDRESS: LEGAL DESCRIPTION: Successor Agency to the Palm Desert Redevelopment Agency Mailing Address: 73-510 Fred Waring Drive Palm Desert, CA 92260 Telephone: c/o Martin C. Alvarez Director of Economic Development (760) 346-0611, ext. 414 No situs address; property located in Palm Desert, California Parcel 2, Parcel Map No. 35155, per map recorded in Book 220, Page 76 of Maps, in the office of the County Recorder, County of Riverside, California. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 1 _ r 1:7 LIDGARD AND ASSOCIATES APPRAISFRS•CONSULTANTS 11V.***". - 71f. iblit-44-06, utT; lk 6,441 A,,-***SillisiwItToriii•ik:: Of 4., : Whyl:P"-4110'itpErn7;47)114 .r tni-3 427 4,-* 4440 *.lAigaveti4'671plyi `47 LIDGAR_D AND ASSOCIATES APPRAISERS -CONSULTANTS $13.71 $11.87 $6.71 Vista Chino 111 E4amon RdR Sky Valley $15.47 4447 R ton oachella Valley Preserve Ague Caliente 'Po I.R. Dinah S Gerald Eord_Dr Macor o athedral City Palms on Rd Thousan . alms Edom „Willis Palms Ra Hidden Palms $12.61 Rancho Mirage, Frank Sinatra Or .: Palm Springs t Subject Property Hills, f R I V E o. 0 QCountty_Club Dt m a o in a o rm Hovk r_Ln -E Du. 42nd Ave v Palm Dese Country Fred Wanng Dr. oma Waring Dr 4_, Indian Wells 0 mi LIDGARD AND ASSOCIATES La Quint% Avenue ss' Eisenhower Dr 2 In D 1) c O oi Avenue 48 ail m 4_ 41) ,in .Avenue 50op 6 4 APPRAISERS -CONSULTANTS E 0 z 0 N a 0 U I i• z 1- W cc 0 FRCI4! LAND 4 L C1 NO/CA •1 L 0 o °' cz o E • O r- N O In f» a) f!3 LLl 0 O N- ay o N O (C) In r a (3) Ea Eft N EA- N a E N a) 0) m Q E N N Q E N 0) 4) Q E N a) m U O i i i i Q i i i Purchase price: Purchase price per sq. ft.: Property rights conveyed: standard sale standard sale standard sale auction sale bank owned standard sale Conditions of sale: 31% cash down Sale terms: 4/22/2014 3/28/2014 0 0) N CO 0) 6/20/2013 2/28/2013 Date of sale: slt'ly. inferior slyly. inferior `O 0) 0 C slt. upwrd. adj. slt. upwrd. adj. 0 • (0 0 0_ (0 0 (0 OQ 3 3 mi. northwest 5 1/2 mi. southeast 4 1/4 mi. northwest 3 3/4 mi. northwest 5 mi. southea ro `m m -° o m m •° m ro m° o 0) E =EN N co - oi as 0) 3 C.) Q • N N o • .N N N a: ,-c: ff3 O_ N N co 0 ° `m E L E ▪ N 0 V upward adj. O ca O N O • N O O O co si .Eo N. U a • N E a E a a a I" • , Cl_ 0 .N C "N 7 'N 0 7 7 i EA co N N co N c ro `m m ° `m m `m ° m m m° o 0 E E E N m 0 a E E E a E E E o_ (o N N U) 1 N N N 7) N N co ND ' fa Q 3 a o m m as U° o m m° m (o m° o r a c w 3 d E • '� ° E E a • `r Oa • Q co co N 7 a • s. m _m ° m _ro m° ro° ro° o rn E E E d ro U a E E E a E - n E Li) .N CT) .N C� Q N N .N N • N N N m mil 0 O O 0 (0 0 (a ° 0 E E c Q.c N N E Market conditions: 0) 0) (0 a) N 173 c0 N c 0 c 0 0 (C5 Proximity to subject property: General location: Imm. environ. influ.: all available Public utilities N OD CD downward adj. a ° `ro m `m ° `ro ro ° ° • o 11) z Q .N .N .N Q .E▪ .E .N CI• ffi co N N N U N 1 L - . • 0 _m 0) O' � 0 m N 1 ▪ Q' : C C N 0_ (0 — Land area (sq. ft.): Land area consideration: C 0 N Zoning consideration: Off -site improvements: Accessibility: Entitlements: Land shape: m (; Topography: as if vacant Site conditions: CB ro Overall developability: Site prominence/exposure: Overall comparability adj.: Adjusted $ per so. ft. land: $13.71 Vista Chino 11I E.Ramon RdR $11.87 Agua Caliente IR. Dinah Sho 0o Gerald Ford Or °Cathedral City Rancho Mirage, Palm Springs Frank Sinatra Dr Subject Property 0 CO Sky Valley on Rd Thousan. alms Edom Fred Waring Dt Ovo Ra $15.47 oachella Valley Preserve „Willis Palms Country Club_.Dt..__..... _. Hidden Palms �� y I!Bermo .. o Hovi1n E..._........ Du U Palm Dese Country Indian Wells 111 0 mi LIDGARD AND ASSOCIATES APPRAISIRS-CONSULTANTS Fr u9 0 c, .Avenue A$ L% 4- m' 4,4 Avenue 50 $12.61 Macon Palms 42nd A 7 a 0 La Quints% Eisenhower Dr 2 Waring Dr tr N ) Avenue 3 S2 4 cn MARKET DATA A Northwest corner of Dinah Shore Drive and Cathedral Canyon Drive, Cathedral City. Building indicated in photograph constructed subsequent to the sale. GRANTOR: Dinah Drive, LLC APN: 680-441-058, 060 GRANTEE: CA7E Cathedral City, LLC LAND SIZE: 15,682 sq.ft. SALE DATE: February 28, 2013 ZONING: N-BP DOC. NO.: 100554 CORNER: Yes SALE PRICE: $215,000. DOC. STAMPS: $236.50 H & B USE: Commercial PRESENT USE: Comm. use TERMS: All cash IMPROVEMENTS: None at time of sale. ENTITLEMENTS: None ST. FRONTAGE: 200 feet VALUE INDICATION: $13.71 per SF land. DATE INSPECTED: August 12, 2014 BY: Scott A. Lidgard, MAI LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 2 MARKET DATA A (Continued) y- ^'7.VEDI Wa =.WK9V 0•r•• I . one 1 ff.w 1 f sp ! * "'I il 4 4 ri 4 ski 4 4 isq J il L. fVN. N4. 3r/K.1 drf4f e/rArO Iry . .--! i C ®t ® ® € ® € 11.Ar 1 g f :t t x t 1 1, R rat a,.A» ter e MI rwA J Not....:„._,'''!.! • ` awl rat «... a7: • ."L'EBIS-- — I 7 a t 4 I a R k 1 0 0 ® ® ® ®s® , e O 1...0 ® ® ie J Qr:-- t - A44i444d.. ram O.IJtl ter c — • da t. • •t9t• ® l e QP. 0 a OJr..• • 61 w a a! a. a Ala z si 0 0I C y�� JN 4.-y I 0 Q a I ram ,a,-,l mi•• '•• Jtii.. © ® © 0 Q 0 ® e e ® ® ozzo AH 0 rat 4 — rmarc Cram 0 VERIFICATION: Document of public record, CoStar Comps, and Barney Upton, broker representing grantor. LIDGARD AND ASSOCIATES APPR AISERS-CONSULTANTS 3 MARKET DATA B South side of Miles Avenue, beginning 79.97 feet east of Washington Street, La Quinta. GRANTOR: Pacific Premier Bank APN: 604-630-012 GRANTEE: Int'I. Property Solutions, LLC LAND SIZE: 39,640 sq.ft. SALE DATE: June 20, 2013 ZONING: CT DOC. NO.: 295417 CORNER: No SALE PRICE: $500,000. DOC. STAMPS: $550.00 H & B USE: Commercial PRESENT USE: Parking lot TERMS: All cash IMPROVEMENTS: Parking lot improvements ENTITLEMENTS: None ST. FRONTAGE: 211 feet VALUE INDICATION: $12.61 per SF land. DATE INSPECTED: August 12, 2014 BY: Scott A. Lidgard, MAI LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 4 MARKET DATA B (Continued) VERIFICATION: Document of public record CoStar Comps, and Brian Corrigan, broker representing grantor. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 5 MARKET DATA C Cast sloe or uate yalm urive, oegirming I Lo reef south of vioioria unve, Cathedral City. Improvements indicated in photograph constructed subsequent to the sale. GRANTOR: Gabriel & Patricia Lechuga APN: 673-172-024 GRANTEE: Boos Fund 1- LAND SIZE: 50,530 sq.ft. Cathedral City, LLC SALE DATE: September 4, 2013 ZONING: PCC DOC. NO.: 431314 CORNER: No SALE PRICE: $600,000. DOC. STAMPS: $660.00 H & B USE: Commercial PRESENT USE: Commercial use TERMS: All cash IMPROVEMENTS: None at time of sale. ENTITLEMENTS: None ST. FRONTAGE: 399 feet VALUE INDICATION: $1 1.87 per SF land. DATE INSPECTED: November 3, 2014 BY: Scott A. Lidgard, MAI LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 6 MARKET DATA C (Continued) 1.11 •I 0 I is • v PALFA 0 M A V 1 • s rJ I I OR. VERIFICATION: Document of public record, CoStar Comps, and Curtis Barlow, broker representing grantor. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 7 MARKET DATA D Southeast corner of Bob Hope Drive and Via Vail, Rancho Mirage. GRANTOR: Victory Christian Center APN: of the Desert, Inc. 685-060-01 1 GRANTEE: Vista San Jacinto, LLC LAND SIZE: 42,689 sq.ft. SALE DATE: December 9, 2013 ZONING: 0 DOC. NO.: 571941 CORNER: Yes SALE PRICE: $286,500. DOC. STAMPS: $315.15 H & B USE: Commercial PRESENT USE: Vacant land TERMS: All cash IMPROVEMENTS: None at time of sale. ENTITLEMENTS: None ST. FRONTAGE: 400 feet VALUE INDICATION: $6.71 per SF land. DATE INSPECTED: November 3, 2014 BY: Scott A. Lidgard, MAI L1DGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 8 MARKET DATA D (Continued) —is —%CTORY ne — .44 ,sw 011.1811 wn, in 0 caw, 11111.11,1011. DR , ossesR a s0 101 PO POI 0 5y VERIFICATION: Document of public record, CoStar Comps, and Don Tannahill, broker representing grantor. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 9 MARKET DATA E Northeast corner of Monterey Avenue and 35th Avenue, Palm Desert. GRANTOR: RJ Ventures, LLC GRANTEE: AutoZone, Inc. SALE DATE: March 28, 2014 DOC. NO.: 113888 SALE PRICE: $950,000. H & B USE: Commercial TERMS: All cash APN: 694-090-029 LAND SIZE: 61,420 sq.ft. ZONING: PC-3 CORNER: Yes DOC. STAMPS: $1,045.00 PRESENT USE: Commercial use IMPROVEMENTS: Parking lot imps. at time of sale. ENTITLEMENTS: None ST. FRONTAGE: 4784 feet VALUE INDICATION: $15.47 per SF land. DATE INSPECTED: November 3, 2014 BY: Scott A. Lidgard, MAI LIDGARD AND ASSOCIATES AP PRAISERS -CONSULTANTS 10 MARKET DATA E (Continued) 40 VERIFICATION: Document of public record and CoStar Comps. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 11 MARKET DATA F Southwest corner of Frank Sinatra Drive and Monterey Avenue, Rancho Mirage. GRANTOR: Peter Solomon, Inc. APN: 685-251-009 GRANTEE: Do Stuff Partnership, LP LAND SIZE: 99,460 sq.ft. SALE DATE: April 22, 2014 ZONING: CO DOC. NO.: 145079 CORNER: Yes SALE PRICE: $750,000. DOC. STAMPS: $825.00 H & B USE: Commercial PRESENT USE: Vacant land TERMS: All cash IMPROVEMENTS: None at time of sale. ENTITLEMENTS: None ST. FRONTAGE: 590 feet VALUE INDICATION: $7.54 per SF land. DATE INSPECTED: August 12, 2014 BY: Scott A. Lidgard, MAI LIDGARD AND ASSOCIATES APPR AISF RS-CON S V LTANTS 12 MARKET DATA F (Continued) • Ywa FRANK • lin .444/1 91A uN . n J i i CJ maa ow.• 414 AC $INATRA MAO �'• I" • --A $PAW 1A•4 Y I ' 1 DRIVE OOVIr non Ma 1 41411 2$1 • 164 •� 10•A w. I qt VERIFICATION: Document of public record, Multiple Listing Service, and Scott Wilson, broker representing grantor. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 13 See Photo No. 1 on first page of Subject Property Section. PHOTO NO. 2: View northerly across the subject parcel from the adjacent common area drive aisle. PHOTO NO. 3: View looking westerly across the subject parcel from the adjacent common area drive aisle. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS PHOTO NO. 4: View looking southerly across the subject parcel from the adjacent common area drive aisle. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS STREET SCENE 1: View looking westerly along Painters Path. STREET SCENE 2: View looking easterly along Painters Path. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS Staff Report CZ 14-190 Page 2 of 4 August 19, 2014 The property totals .68 acres and is located between La Spiga and the Henderson Building, as shown in the image below: City staff is investigating the possibility of building a new outdoor multi -use pavilion that may be used for the Certified Farmers Market and other community events for the public on the property. The City would be required to buy the property at fair market value from the Successor Agency to the Palm Desert Redevelopment Agency to retain ownership for such a outdoor multi -use pavilion. B. General Plan and Zoning: The property is currently designated Office Professional (C-OP) in the General Plan, and zoned Office Professional (O.P.). C. Adjacent Zoning And Land Use: North: PC (3), SP / Commercial Shopping Center, Scenic Preservation Overlay South: PR-6 / Sandpiper Condominiums East: PC (3), SP / Commercial Shopping Center, Scenic Preservation Overlay West: Overlay n Dese,l Land1S PC (3), SP / Commercial Shopping Center, Scenic Preservation Formatted: Indent: Left: 0.25", Tab stops: 0.19", Left Staff Report CZ 14-190 Page 3 of 4 August 19, 2014 Proiect Description The request is to change the zoning from Office Professional (O.P.) to Public for a vacant property located in Entrada del Paseo. The property is anticipated to be used for a public use. Future development of the parcel will require a separate development application that will be reviewed by the Planning Commission. No construction activity or development plans are proposed at this time. Analysis/Conclusion The proposed change of zone is consistent with the overall master plan for Entrada del Paseo, which was approved for a quasi -public and commercial project at the entry to El Paseo from Highway 111. The parcel would be purchased by the City for a future public use. Environmental Review According to the California Environmental Quality Act (CEQA), staff must determine whether a proposed activity is a project subject to CEQA. If the project is subject to CEQA, staff must conduct a preliminary assessment of the project to determine whether the project is exempt from CEQA review. If a project is not exempt, further environmental review is necessary. Further review from a non-exempt project would result in a Negative Declaration, a Mitigated Negative Declaration or an Environmental Impact Report (EIR). Generally, an EIR must be prepared if a project may have a significant impact on the environment. The City of Palm Desert (City), in its capacity as the Lead Agency has determined that the change of zone will not result in a direct or indirect physical change to the environment; therefore it is not a project under CEQA. Any future construction on the vacant property will require a development application and environmental study for any impacts from that specific project. Submitted by: Tony Bagato, Principal Planner Department Head: Wi Chan g.PORRTTdo,' PknaAlaHR4F eserind\StoeBort-Ze e-".angaFR-T--9 BRoeH6r Comment [LA1]: Comment [LA2]: Can you fix the aligr Staff Report CZ 14-190 Page 4 of 4 August 19, 2014 Lauri Aylaian, Director of Community Development T \Re)�ods�75,"}y-Pa. x�l nr,d�.Sta,H Renort-Zorn CO�RBT doclRnat�ps�7H2E1-Palw+Aeseq 640-370-016 Date: 2014 VICINITY MAP