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Home My WebLink AboutSR - Rtfy - R26680 - Prop @ 42-455 Washington St.PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: RATIFICATION OF AGREEMENT FOR PROFESSIONAL SERVICES (CONTRACT NO. R 26680 ) FOR UPDATED APPRAISAL FOR CASEY'S RESTURANT SUBMITTED BY: MARTIN ALVAREZ, REDEVELOPMENT MANAGER CONTRACTOR: LIDGARD AND ASSOCIATES, INC. 2808 E. KATELLA AVENUE, SUITE 107 ORANGE, CA 92867 — 5246 DATE: JUNE 28, 2007 CONTENTS: PROFESSIONAL SERVICES AGREEMENT Recommendation: By Minute Motion, that the Agency Board ratify an agreement in an amount not -to - exceed $3,950.00 (including reimbursables) with Lidgard and Associates for an updated appraisal for Casey's Restaurant located at 42-455 Washington Street. Funds for this service are available in Account No. 854-4195-466-3092. Executive Summarv: Approval of staff's recommendation will ratify a professional services agreement in the amount not -to -exceed $3,950.00. The Agency's Executive Director authorized staff to contract with Lidgard and Associates, Inc. to provide property appraisal services necessary to identify an updated fair market value for Casey's Restaurant located at 42-455 Washington Street. Discussion: In 2005, the Palm Desert Redevelopment Agency purchased the Country Village Apartment project located the southwest corner of Washington Street and Avenue of the States. The acquisition of the 2.98-acre site included the existing 5,313 square foot restaurant/lounge building know as Casey's. In October of 2006, staff used Lidgard and Associates to prepare an appraisal for the Casey's restaurant portion. In order to get a current and more accurate value of the Casey's Restaurant site, staff received approval by the Executive Director to contract with Lidgard and Associates in the amount not to exceed $3,950.00. With the updated appraisal, staff can continue discussions with interested parties who may seek to purchase the property. Staff Report Ratification of Casey's Restaurant Appraisal (Contract No. R 26680 Page 2 June 28, 2007 Lidgard and Associates has a strong knowledge of the site, and is qualified to provide these professional appraisal services. Therefore, staff recommends that the Agency Board ratify the professional services agreement with Lidgard and Associates. Submitted by: Martin Alvarez, Redevelopment Manager opment IAA Carlos L. Ortegg, Executive Director Department Head: Dave Yrigoyen Director of Re velopment/Housing Paul S. Gibson, Director of Finance A V-d BY RDA O ON b ' 29 ()i VERIFIED BY CDK v Original on file with City Clerk's Office C:\Documents and Settings\mhunt\Local Settings\Temporary Internet Files\OLK1 C\Ratification SR-Lidgard Appraisal doc 9 May 30, 2007 Mr. Martin Alvarez Redevelopment Manager Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, California 92260 Subject: Update Real Estate Appraisal Services Casey's Restaurant/Lounge 42-455 Washington Avenue Palm Desert, California Dear Mr. Alvarez: In accordance with the request of Bob Stoddard at Overland, Pacific & Cutler, Inc., I submit this proposal for professional real estate appraisal services in connection with the above -referenced property. The scope of our services will include (1) a field 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 and the Income Capitalization Approach based on an analysis of the comparable market data, and (5) preparation of the formal narrative appraisal report in summation of the, activities outlined above. The subject property consists of the easterly portion of a larger parent ownership comprising the subject restaurant building, along with the Country Village apartment building complex. The effective land area of the subject property is estimated at 26,600± square feet. The restaurant building is of wood frame construction, contains 5,314± square feet, and was built in 1960±. Other appurtenant on -site improvements include an outdoor patio area, asphalt paving, concrete paving, concrete planter curbing, marked automobile parking spaces, concrete auto stops, and ornamental landscaping. Overall condition of the building and on -site improvements is rated average considering the age. Long Beach Office: 3353 Linden Avenue Suite 200 Long Beach, CA 90807 - 4503 Orange County Office: 2808 E Katella,Avenue Suite 107 Orange, CA 92867 - 5246 Telephone: (562) 988-2926 (714) 633-8441 Facsimile: (714) 633-8449 ieWG4'IRD AND 7` ASSOCIATES ME� �.ti`$F�€; j��'N/JII''FQF-YF� FCFEBI� �'Fi&C4FA��fl�E6F€L L Mr. Martin Alvarez Redevelopment Manager Palm Desert Redevelopment Agency May 30, 2007 Page 2 The update valuation study will set forth the market value of the unencumbered fee simple interest of the restaurant facility and appurtenant land area. The property will be appraised based on the hypothetical assumption of a separate marketable entity, exclusive of non -realty fixtures/equipment. A current date of value will be employed in the valuation study. The appraisal report will comply with reporting requirements set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), under Standard Rule 2-2(b) for a summary appraisal report, and will incorporate, by reference, the data and valuation analysis contained in our office file/database. Based on the amount of time estimated to complete the update appraisal study, and formal narrative appraisal report, the fee for our services will be in the total amount of $3,950, payable upon delivery of the appraisal report. The summary appraisal report can be delivered, in triplicate, within approximately six weeks following receipt of your authorization to proceed. If you are in agreement with the above terms, please sign and date a copy of this letter -agreement and return to our office. Please do not hesitate to contact me in the event you have any questions regarding this proposal. Very truly yours, LIDGARD AND ASSOCIATES, INC. Scott A. Lidgard, MAI, CCIM Certified General Real Estate Appraiser California Certification No. AG 004014 SAL:kb I hereby authorize the firm of LIDGARD AND ASSOCIATES, INC. to perform the appraisal services referred to above. e6)7 16-7 Martin Alvarez Date (VaW�aatjT MtJI LIi/`GAIM AND SSV!'CA T, ES �":17'� �r°.4i56P.i6?��kkAE%PLk4CC� and 4�iFi6es'$EIIrl�b�.f,CQfEf. INCORPORATED PORATED fr I 7 wk-, .a .�r. i' ■ • 54�aF'-i��