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HomeMy WebLinkAbout; Calavera Hills Proposed Offsite Sewer Easement; Calavera Hills Proposed Offsite Sewer Easement; 1998-08-05TO: Mr. William E. Plummer, District Engineer Carlsbad Municipal Water District 5950 El Camino Real Carlsbad, California 92008 ^ REFERENCE: Calvera Hills Proposed Offsite Sewer Easement FROM: LIPMAN STEVENS MARSHALL & THENE, INC. Gary L. Rasmuson, MAI 401 B Street, Suite 2101 San Diego, Califomia 92101-4244 FILE: 98162GR * DATE: Augusts, 1998 LiPMAN STEVENS MARSHALL & THENE, INC. LEEANNA T. DANTE BRIAN L. FLANNERY DANI L. GREINER LORIEJ. HARMON RICHARD J. HUTZLER ED UROY PATRICK J. MARSH GARY L. RASMUSON, MAI RICHARD T. RUSSELL Real Estate Appraisers & Consultants August 5, 1998 H.L. "BILL" LIPMAN. MAI, CRE WALTER J. STEVENS. MAI THOMAS O. MARSHALL, MAI KEVIN M. THENE. MAI Mr. William E. Plummer, P.E. District Engineer Carlsbad Municipal Water District 5950 El Camino Real Carlsbad, Califomia 92008 RE: Calavera Hills Proposed Offsite Sewer Easement Five separate ownerships of contiguous parcels in proximity of El Camino Real in the northeast quadrant of the City of Carlsbad Dear Mr. Plummer: At your request, I have prepared an appraisal setting forth the fair market value and total just compensation for the part to be acquired from the above-referenced properties as of July 17, 1998. I have made a careful inspection of the subject property and analyzed data pertinent to the subject's market value. My findings and conclusions are submitted within this report. The appraisal report has been prepared to comply with the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Ethics and Supplemental Standards of the Appraisal Institute. This report is prepared and presented as a Complete, Self-Contained appraisal report according to the reporting requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) ofthe Appraisal Foundation. My investigation for this assignment included inspection of available easement plans, a visual inspection of the subject properties and analysis of sales of land in the Carisbad market area. By virtue of my experience and based upon my investigation, it is my opinion that the total just compensation for the part to be acquired from the subjects' fee simple estate as of July 17, 1998, was: Parcel I.D. 1 2 3 4 5 Property Owner Robertson Family Trust Westem Land and Development Carlsbad Unified School District State of Califomia Brian and Gary Robertson Concluded Just Compensation $2,400 $6,000 $5,100 $1,000 $500 Please refer to the Limiting Conditions section of this report for the specific assumptions made in this analysis. 401 B Street, Suite 2101, San Diego, California 92101-4244 Phone (619) 232-2801 Fax (619) 232-7219 Mr. William E. Plummer, P.E. District Engineer Carlsbad Municipal Water District August 5, 1998 Submitted herewith is my report containing the facts and reasoning upon which the above value is based. It has been a pleasure to be of service to the Carlsbad Municipal Water District in this assignment. Sincerely, LIPMAN STEVENS MARSHALL & THENE, INC. L. ^tesflfuson, MAI Certifiedi3«ieral Real Estate Appraiser State of Califomia OREA Appraiser I.D. No. AG002571 Expiration Date: Febmary 4,2000 TABLE OF CONTENTS ITEM PAGE NO. Letter of Transmittal i Summary of Conclusions 1 Limiting Conditions and Assumptions 2 Certification 3 INTRODUCTION Purpose of the Appraisal 4 Pertinent Definitions 4 Identification of Property 4 Scope of the Appraisal 5 AREA ANALYSIS Regional Analysis 7 Commimity Analysis 10 Project Description 11 PARCEL 1 - WESTERN LAND AND DEVELOPMENT Subject Plat Map 14 Site Description 15 Larger Parcel Valuation 26 Just Compensation Estimate 34 PARCEL 2 - ROBERTSON TRUST Subject Plat Map 39 Site Description 40 Larger Parcel Valuation 50 Just Compensation Estimate 57 PARCEL 3 - CARLSBAD UNIFIED SCHOOL DISTRICT Subject Plat Map 61 Site Description 62 Larger Parcel Valuation 72 Just Compensation Estimate 79 PARCEL 4 - STATE OF CALIFORNIA Subject Plat Map 84 Site Description 85 Larger Parcel Valuation 93 Just Compensation Estimate 100 Lipman Stevens Marshall & Thene, Inc. PARCEL 5 - ROBERTSON Subject Plat Map 105 Site Description 106 Larger Parcel Valuation 113 Just Compensation Estimate 119 ADDENDUM Easement Area Calculations Plats Addendum 1 Appraiser Qualifications Addendum 2 Lipman Stevens Marshall & Thene, Inc. EXECUTIVE SUMMARY Property Project Description OT m Ownership Purpose Estate Valued Area of Larger Parcels Five separate ownerships of contiguous parcels located in the northeast quadrant of the City of Carlsbad in proxunity of El Camino Real Thomas Brothers Map Page 1107 C-7, D-5 A proposed acquisition of an easement by the Carlsbad Mimicipal Water District for the construction of an underground gravity-flow sewer trunk line and pressurized reclaimed water line to cormect service to Calavera Hills and future development in the area. The proposed project will be located within a 30-foot wide easement and cormect to existing facilities in El Camino Real. Parcel 1 Parcel 2 Parcel 3 Parcel 4 Parcel 5 Robertson Family Trust Westem Land & Development Carlsbad Unified School District State of Califomia Brian and Gary Robertson To estimate the total just compensation for the acquisition of a utility easement from the subject larger parcels. The fee simple estate Parcel 1 Parcel 2 Parcel 3 Parcel 4 Parcel 5 365.88 acres 155.93 acres 57.63 acres 263.12 acres 6.69 acres Date of Value Indicated Values July 17,1998 Total Just Compensation: Parcel 1 Parcel 2 Parcel 3 Parcel 4 Parcel 5 $2,400 $6,000 $5,100 $1,000 $500 Date of Report Appraiser August 5, 1998 Gary L. Rasmuson, MAI Lipman Stevens Marshall & Thene, Inc. LIMITING CONDITIONS AND MAJOR ASSUMPTIONS This appraisal is made expressly subject to the following conditions and stipulations: 1. No responsibility is assumed for matters which are legal in nature, nor is any opinion on the title rendered herewith. This appraisal assumes good title, responsible ownership and competent management. Any liens or encumbrances which may now exist have been disregarded, and the property has been appraised as though free of indebtedness. 2. The factual data utilized in this analysis has been obtained from sources deemed to be reliable; however, no responsibility is assumed for its accuracy. 3. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraisers. The appraisers have no knowledge of die existence of such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in tiie property that would cause a loss in value. 4. Except as noted, this appraisal assumes the land to be free of adverse soil conditions which would prohibit development of the property to its highest and best use. 5. This appraisal is of surface rights only, and no analysis has been made ofthe value of subsurface rights, if any. 6. Disclosure ofthe contents of this appraisal report is governed by the By-Laws and Regulations of the Appraisal Institute. 7. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity ofthe appraisers or this appraisal firm, or any reference to the Appraisal Institute or to its designations) shall be disseminated to the general public by the use of advertising media, public relations media, news media, sales media or other media for public communications witiiout the prior written consent of the signatory of this appraisal report. Possession of this report or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with the proper written qualification and only in its entirety. 8. This appraisal has been prepared as a complete, self-contained appraisal report prepared under Standards Rule 2-2(a) of USPAP. Lipman Stevens Marshall & Thene, Inc. CERTIFICATION li m I certify, to the best of my knowledge and belief,... the statements of fact contained in this report are tme and correct. the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in die property tiiat is the subject of this report, and I have no personal interest or bias v^th respect to the parties involved. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result or the occurrence of a subsequent event. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity witii the requirements of tiie Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice. the use of this report is subject to the requirements ofthe Appraisal Institute relating to review by its duly authorized representatives. as ofthe date of this report, Gary L. Rasmuson, MAI has completed the requirements ofthe continuing education program ofthe Appraisal Institute. I have made a personal inspection ofthe property that is the subject of this report. this appraisal was not based on a requested minimum valuation, a specific valuation or approval of a loan. no one provided significant professional assistance to the person signing this report. Gary L. ^sjjufson, MAI Date: August 5,1998 Certified General Real Estate Appraiser State of Califomia OREA Appraiser I.D. No. AG002571 Expiration Date: February 4, 2000 Lipman Stevens Marshall & Thene, Inc. INTRODUCTION Purpose of the Appraisal The purpose of the appraisal is to estimate the fair market value of the fee simple interest in the subject property and total just compensation for the easement acquisition, subject to the specific limiting conditions and assumptions as noted in this report. Intended Use of Appraisal This appraisal was prepared for the exclusive use of the Carlsbad Water District for easement acquisition purposes. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparer's written consent, does so at his own risk. Definition of Fair Market Value Identification of the Property Fair market value is defined as the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obligated to sell, and a buyer, being ready, walling and able to buy but imder no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. The fair market value of property taken for which there is no relevant market is its value on the date of valuation as determined by any method of valuation that is just and equitable. Source: Section 1263.32 Code of Civil Procedure, State of Califomia The property appraised consists of five separate ownerships of contiguous parcels in proximity of El Camino Real in the City of Carlsbad. For report purposes only, they are identified as Parcels 1 through 5 as follows. Parcel I.D. Parcel 1 Parcel 2 Parcel 3 Parcel 4 Parcel 5 Record Ovmers Robertson Family Trust Westem Land & Development Carlsbad Unified School District State of Califomia Brian and Gary Robertson Date of Value July 17, 1998 (date of most recent inspection of property) Lipman Stevens Marshall & Thene, Inc. m INTRODUCTION Marketing and Exposure Time Scope of the Appraisal mt m The marketing and exposure time applicable for this valuation estimate is six months to one year based on comparable sale data considered in this report as well as current and anticipated market conditions for this type of property. This appraisal has been prepared as a complete self-contained appraisal report imder Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). In preparing this appraisal, I personally inspected the subject properties, the comparable market data and interviewed brokers and investors active in this market. m m m m Lipman Stevens Marshall & Thene, Inc. REGIONAL MAP ORANGE COUNTY I c I Comp Psndlston RIVERSIDE COUNTY r Fol lb rook .Oceonside Corhbod^ Solana Beach Vista San ilorcos PACIFIC OCEAN D«l Mar San Oi«qo Escondido Pomay LO MVBO, Jul ion SAN JDIEGO COUNTY Pine VoMey IMPERIAT COUNTii National City Chula Vlata Impvriol B«ach TIJUANA Toe at* MEXICO Linman Stevens Marshall & Thene. Inc AREA DATA REGIONAL DESCRIPTION San Diego County The subject property is located within the City of Carlsbad, which is situated in the northem section of San Diego County, Califomia. San Diego County is located in the southwestem comer of Califomia and is bordered on the west by the Pacific Ocean and on the south by Baja California, Mexico. San Diego County covers approximately 4,258 square miles which is primarily coastal mountain ranges. The county extends north and south from Mexico to Orange and Riverside counties and east and west from the Pacific Ocean into the Anza Borrego Desert. The population of the San Diego region was one of the fastest growing in the United States during the decade ending in 1991, increasing by 36.9 percent. Population grovrth in the County tapered off during the early 1990's. The five incorporated cities in the north account for 13 percent of the total growth, the City of San Diego represents 40 percent and the unincorporated area represents 47 percent of the total growth. The estimated population for 1997 was 2,720,900. The economic base in San Diego County, which was most commonly associated with the military and aerospace industry in the 1960's, has become increasingly diverse. Today, approximately 17 percent of the working force is employed by govemment; 24 percent in the trades; 26 percent in the service industry (including tourism); 14 percent in manufacturing; 4 percent in transportation, communications and utilities; 7 percent in fmance, insurance and real estate; and, 8 percent in mining, constmction and agriculture. Tourism has grown to be one of the most significant sectors of San Diego County's economy and is the region's third largest industry. Only manufacturing and defense bring more dollars to the regional economy. The addition of the new San Diego Convention Center to downtown San Diego has significantly increased business for the lodging industry and there are plans for an expansion of the center to accommodate larger conventions. San Diego's civilian work force totaled 1,217,500 in 1996, the highest Lipman Stevens Marshall & Thene, Inc. INTRODUCTION number reported for the County. San Diego remains below California's unemployment rate of 7.4 percent. The unemployment rate has dropped to 5.4 percent in 1996, as estimated by the Economic Bulletin of the San Diego Chamber of Commerce. Transportation in and to San Diego County is served by a full range of facilities including the San Diego Intemational Airport (Lindbergh Field). Ten smaller civilian airports are located within the county m outlying communities. Approximately 75 tmcking firms serve the county. Passenger and freight rail service is provided between San Diego and Los Angeles. Approximately six percent of California's port trade is handled through the Port of San Diego. The overall economy of San Diego is growing with a recent recovery from the prior deep recession during the early 1990's. Real estate values had declined in many areas during this period and are now in a recovery mode and in some cases are back to the pre-recession levels. ^ Lipman Stevens Marshall & Thene, Inc. COMMUNITY MAP Lioman Stevens Marshall & Thene. Inc. INTRODUCTION COMMUNITY DESCRIPTION City of Carlsbad The City of Carlsbad is in the North Coastal area of San Diego County. The city is bordered by the Pacific Ocean on the west, Oceanside to the north, Encinitas to the south, and Vista and San Marcos to the east. The city is situated on both sides of Interstate 5, the main route between San Diego and the Los Angeles/Orange County metropolitan area. Palomar Airport Road is the major east-west arterial and 1-5 and El Camino Real are the major north/south arterials. Carlsbad has an appealing geographic setting that includes beaches, lagoons and rolling hills. It was primarily a vegetable and flower-growing area until recent years. Expanding employment opportunities led to a surge in residential growth that made Carlsbad one of the nation's fastest- growing cities in the mid-1980s. Little development occurred during the economic downturn of the early 1990s. Future development will be govemed by a growth-control measure enacted by the City Council that is intended to ensure that public facilities keep pace. The city currentiy has about 30,000 housing units with a projected build-out of 55,000 units. The city's 1997 estimated population was 66,559. Palomar Airport in Carlsbad is a county-operated general aviation airport which also offers commuter airline service to Los Angeles Intemational Airport. The area around the airport is zoned for industrial use and offices. Four golf equipment manufacturers have built facilities near the airport in recent years. They employ a total of 4,700 workers. Other major employers in Carlsbad are Plaza Camino Real shopping center (3,000), Nellcor Puritan Bennet Corp. (1,000), and La Costa Resort & Spa (950). The recently opened Four Seasons Resort at Aviara employs 600, and the new Gemological Institute of America employs 480 people. The expanding employment base in the North Coastal area is a factor in the increasmg demand for housing. Other factors, including the new Coaster commuter rail service and improvements to the Interstate 5/805 interchange, are improving the commute to employment centers in San Diego, which has become more difficult in recent years. ^ Lipman Stevens Marshall & Thene, Inc. 10 INTRODUCTION NEIGHBORHOOD The subject is within a mral area of the city which is predominantly used for vegetable and flower growing. It is northeast of El Camino Real, approximately midway between Highway 78 to the north and Palomar Airport Road to the south. The natural topography is hilly. Development in the area is minimal with a few single-family residences and greenhouses. Access is predominantly by dirt roads. The closest improved through roadway is El Camino Real. Build-out and future development of the area will largely consist of the Calavera Hills residential subdivision located on the north side of this neighborhood. Project Description m The subject project consists of construction of an underground gravity- flow sewer trunk line and pressurized reclaimed water line which will connect service to Calavera Hills and future development in the northeast quadrant of the City of Carlsbad to existing facilities in El Camino Real. The proposed project will be located within a 30-foot wide easement. The length of the pipelines would be approximately 8,000 linear feet each. Permanent at-grade stmctures will include the necessary manholes and a 12-foot wide unpaved road to service the lines. The pipeline constmction and service roadway are proposed to follow existing farm service roads. Constmction of the first phase of the project will consist of the installation of the 12"-wide sewer trunk line. This phase of the project is anticipated to begin in mid-December 1998 with completion expected by the end of the first quarter 1999. No date has been set for constmction of the reclaimed water line. Parcel Descriptions The following sections summarize the site characteristics for each subject parcel based upon a visual inspection of the property on various dates in July 1998. Lipman Stevens Marshall & Thene, Inc. 11 PROJECT LOCATION MAP Ml a«aa: USGS 7A minul* SAN LUIS REY. CA NOATM tooo 3000 LEGEND SCALE (in IMI) . LOCATION OF PROPOSED PROJECT ALTERNATIVES LOCATION OF PREFERRED ALIGNMENT A PROPOSED SEWER AND RECLAIMED WATER PIPELINES LOCATION MAP CALAVERA HEIGHTS CARLSBAD. CALIFORNIA Lipman Stevens Marshall & Thene, Inc. 12 PARCEL 1 - ROBERTSON TRUST PROPERTY m ^ Lipman Stevens Marshall & Thene, Inc. 13 m ASSESSOR PLAT MAP 1 1 / Ito / ^ SHT 2. ^ jos.isiDa) IS mm i4stB) 229 // * rrn l3.a9AC SHT. 3 PORTALADA 34 i5 \SHT POR. 168.13 AC 45.31 AC (•SEE DETAIL•C ® 197.75 AC 1 POR (050) 4^ 3 S MAP BK I6B PG 5 SHTI0F3 - CLSO. — K/AP n«Spi-CARLSBAD TCT: NO. 84-14 UNIT N0r3i . M^P BII^R^ AGSA HeOlCNDA - PGR L0T5 E,I & MM 231 ROS 8927 86.3? AC RANCHO CARLSBAD MOBILE HOME PARK rSEE SHEETS 2».3) pn«c« nutv *. Lioman Stevens Marshall & Thene. Inc 14 SITE ANALYSIS - PARCEL 1 Location The property is located of El Camino Real between Tamarack Avenue and Calavera Drive in Carlsbad. San Diego County Assessor records indicate the westerly portion of the site has a current situs of 5056 El Camino Real, Carlsbad, Califomia. Current Use m m m m Apparent Owner Sale History The property is currently predominantly vacant, unimproved acreage with portions of the property used for farmland purposes. The assessor's office reports that a 1,989 square foot, three-bedroom, two-bath single- family residence is located on the westerly portion of the site. Robertson Family Trust According to public records, no sale transaction has been recorded for this property in the past five years. The most recent transaction was a quit claim deed in 1995.1 am not aware of any listing or pending sale of this property. Assessor's Information Assessor Parcel Nos. 168-050-17 & 168-010-32 til m m Assessed Value (Combined): Land Improvements Total $8,629,479 2 0 $8,629,479 Tax Rate Area; Tax Rate: Real Estate Taxes & Special Asstmts: 09-162 1.05242% $498,548.64 Legal Description The larger parcel is legally described as portions of Parcels 3 and 4 of Miscellaneous Map No. 231 - Rancho Agua Hedionda in the City of Carlsbad, County of San Diego, State of Califomia. I have not been provided with a title report for this property and therefore the legal description is taken from public records and is for informational use only. Zoning The subject is located within the L-C zone for the City of Carlsbad. This is a limited control zone which provides an interim zoning designation for areas where plarming for fiiture land uses has not been completed or plans for development have not been formalized. Upon development of Lipman Stevens Marshall & Thene, Inc. 15 SITE DESCRIPTION - PARCEL 1 this property, it will be rezoned consistent with the general plan land use designation. Agricultural use is an allowed use within this zone. General Plan Site Size/Shape - Larger Parcel Proposed Acquisition Area The Carlsbad general plan designates the subject as RLM, representing low to medium residential development. This density is described as a range of zero to four dwelling units per gross acre. The total site is an irregularly shaped parcel situated at the north quadrant of El Camino Real and Calavera Drive. The Assessor plat maps for the property indicate the total parcel contains 365.88 acres, which is comprised of two assessor parcel numbers as follows: APN 168-050-17 APN 208-010-32 Total Larger Parcel Easement Acquisition: 197.75 acres 168.13 acres 365.88 acres 0.816 acres or 35,545 square feet The proposed sewer easement is comprised of two separate areas of land within Assessor Parcel No. 168-050-17. The westerly easement area is adjacent to El Camino Real, northwest of an existing easement for road purposes. The second easement area is situated towards the northeast boundary of the property in a triangular shape. The vast majority of this proposed easement area is vidthin the boundaries of an existing road easement. Approximately 1,673 square feet will be outside the road easement area. Topography Mi <pr The subject property has mildly to moderately sloping terrain. The property is partly disturbed land with large portions having been or currently being farmed and tilled. Natural vegetation includes coastal sage and grasses and trees. The westem tip of the property near El Camino Real and Tamarack Avenue has the steepest topography, with some of the side slopes appearing to be in excess of 25 percent. The balance of the property is gently rolling hills and some flatiand located mostly on the eastem boundary that appears to be the floodplain area of Calavera Lake Creek. Access Access to the property is from frontage on El Camino Real along the south boundary. Tamarack Avenue on the west and a private road easement on the east boundary. Both Ei Camino Real and Tamarack Lipman Stevens Marshall & Thene, Inc. 16 SITE DESCRIPTION - PARCEL 1 Environmental/Soils m Sensitive Habitat Utilities Avenue are fully improved arterials. The private road easement is asphalt paved with no sidewalks or berms. Overall access is considered good. I am not aware of any environmental contamination of this property. Although no obvious signs of contamination were noted during the property inspection, I am not qualified to determine tiie presence of enviroimiental or soil contamination. I have not been provided with an environmental assessment or this property, therefore, this valuation assumes that tiie site has stable soils and no soil contamination. The subject property consists of farmland and natural rolling hillside. The SanGIS maps for this property indicate that portions have environmentally sensitive habitat including coastal sage. The draft map for tiie Carlsbad Habitat Management Plan (HMP) indicates that northem portions of the parcel may fall within Core 3 and the central/eastem section is designated as Link B. These are areas that may contain environmentally sensitive habitat and/or species and could be subject to inclusion in the habitat and species conservation program. All available utilities serve the subject site. Public water, sewer and electricity are available adjacent to the property within El Camino Real. Any development of the property would require extension of utilities into the parcel. Coastal Zone Flood Zone Earthquake Hazard The subject property is located outside of the coastal zone boundary. The property is located in Flood Zone C, an area of minimal flooding, per FEMA Map 060284-0775C. The subject property is not within an identified Alquist-Priolo Earthquake Special Studies Zone. Surrounding Land Uses North: South: East: West: Easements and Restrictions Vacant acreage designated as L-C zoning Calaveras Road; Rancho Carlsbad Mobile Home Park Acreage used for agricultural purposes El Camino Real; mixture of single-family residential and vacant land I have not been provided with a copy of Preliminary Title Report or Title Policy for this property. This appraisal assumes there are no easements Lipman Stevens Marshall & Thene, Inc. 17 SITE DESCRIPTION - PARCEL 1 or restrictions which would adversely impact the sale or development of the property. I am aware of two high power transmission lines which cross through the subject property. One is located at the southwest property comer and the second is near the center of the property in a north/south direction. A 30-foot wide road easement encumbers the eastem property boundary. Existing Improvements The subject property predominantly consists of vacant acreage and cropland. The County Tax Assessor indicates that a single-family residence exists on a portion of the site. Assessor records indicate the residence contains 1,989 square feet and was buih in 1959. The records also indicate this is a three bedroom, two-bath home. Since the building improvements are not situated within the proposed easement area, they are described for informational purposes only. The improvements have not been valued as part of the larger parcel. Inspection Date July 17, 1998 (most recent inspection date) The property owner's representative, Mr. Jim Hicks was notified of the inspection and declined to meet me at the property. m Lipman Stevens Marshall & Thene, Inc. 18 SITE DESCRIPTION - PARCEL 1 m m HIGHEST AND BEST USE Highest and Best Use As Vacant nr Hi The "highest and best use" is a key element in valuing the Subject Property. Highest and best use is an estimate of that use which provides the highest net retum to the land and fits within the legal and physical constraints of the property. The use is not a fact to be found but based upon a knowledgeable opinion. Further, it should consider the special marketable characteristics of the subject and operate within the limits of pmdent and justifiable investment. For valuation purposes, the highest and best use of the subject is found for the site, as if vacant, and for the total property, as improved. Since this analysis only values the land, an opinion of highest and best use as improved is not estimated. The subject is a 366-acre parcel of land currently used for farming. The property is zoned LC, a limited control zone. The general plan designation is for RLM, a residential low to medium density land use. No land use planning is active for this property according to the property owner's representative. Upon development, the property will be rezoned consistent with the land use plan and the general plan requirements. The subject has rolling terrain and plenty of developable acreage. Development of the property will need to address the environmentally sensitive habitat and species which may exist. It also will need to address the Carlsbad HMP. Residential development has grown in the area and is now adjacent on the south, west and north. The subject has development potential for the near future if the property owner wishes to pursue land planning and entitiements. This process would likely take at least one year. The highest and best use for this property is for continued farming as an interim use until the property has been through the planning process for a residential development. The potential number of dwelling units is not known due to topography and environmentally sensitive land issues. Lipman Stevens Marshall & Thene, Inc. 19 TOPOGRAPHIC MAP m m m m m m m m Printed from TOPO! ©1997 Wildftewer Productions (ww.topo.com) Lipman Stevens Marshall & Thene, Inc. 20 SUBJECT PROPERTY PHOTOGRAPHS View looking west on El Camino Real and southeast property comer View of larger parcel looking southwest from northeast property boundary Lipman Stevens Marshall & Thene, Inc. 21 SUBJECT PROPERTY PHOTOGRAPHS Continued... Looking east from westem comer of property near Tamarack Avenue frontage Looking north along area of proposed easement near El Camino Real and 60-foot road easement Lipman Stevens Marshall & Thene, Inc. 22 SUBJECT PROPERTY PHOTOGRAPHS Continued... Looking south along area of proposed easement within existing 60-foot wide private road easement Lipman Stevens Marshall & Thene, Inc. 23 PROPOSED ACQUISITION PLAT - PARCEL 1 (Page 1 of 2) m Lor B RANCHO AGUA HSDiONDA P.O.C: PCL A Sir. COR. PCL. \2. RLE NO. 1995- 0180164. O.R. I LEGEND: INDICATES SEWER EASEMENT PARCEL A = 0.565 ACRE HUNSAKER k ASSOCIATES IAN DIIC4 IHC 300 rUhNNC im Hwmdufa St Slid 200 sutvEYX«: nwinsaMSOo • rxmviaww nHiyoosttMatOMc SCALE r = 300' SHEET 1 OF 2 SEWER EASEMENT PLAT - CITY OF CARLSBAD APPLICANT: McUILLIN COUPANIES 2727 HOOVER AVE. NATIONAL CITT, CA 92050 (619) 793-2B50 PREPARED BY: JCMN W. HILL. JR. LS. S6G9 EXPIRES: 9/30/99 PROJECT: SEWER EASEMENT aM.W.a 84-501 A.P.N.: 168-050-17 HIBIT "B" Lipman Stevens Marshall & Thene, Inc. 24 PROPOSED ACQUISITION PLAT - PARCEL 1 (Page 2 of 2) LOT B lANCHO AGUA HBDIONDA MAP NO. 32B APN 168-050-17 P.0.8. PARCEL 9 fi OF S MAP NO 6Sid APN 168-050-24 LEGEND: HUNSAKER &ASSOCIATES nANNNC 1DD«HDN«Mk«lJtUi]IU 0ati\aasiaiU&OM; SCALE 1 SHEET 2 OF 2 SBNER EASEMENT PIAT - CfTf OF CARLSBAD APPLICANT: c.u.v.o. SgSQ CL CAUINO RCAL CAA-SBAO, CA g2008 PREPARED BY: PROJECT: SEWER EASEMENT CM.W.D. 84-501 A.P.N.: 168-050-17 APPLICANT: c.u.v.o. SgSQ CL CAUINO RCAL CAA-SBAO, CA g2008 JOHN W. HU. JR. LS. MM OCPIKS: 9/»/*9 PROJECT: SEWER EASEMENT CM.W.D. 84-501 EXHIBIT "B" Lipman Stevens Marshall & Thene, Inc. 25 VALUATION - PARCEL 1 m Introduction Compensation for the part to be acquired is normally based on tiie unit value of the underiying land as considered part of the larger parcel. The larger parcel is defmed as the sum of the property found under the same ownership, having contiguity of location and of a similar use. Although there are some situations where the part to be acquired can be valued as a separate parcel, the circumstances do not apply to this project. The larger parcel has been identified tiirough public records available to the appraiser and is assimied to be correct. A sales search was made for land sales of property comparable to the subject. The market area searched included most of the northem area of San Diego County due to the size of the larger parcel. Several comparable sales were found and tiiose most similar in size and physical characteristics were selected for analysis. A simimary ofthe comparable market data items follows, with analysis and conclusions following the data summaries. Lipman Stevens Marshall & Thene, Inc. 26 SALE LOCATION MAP ©1996 Thomas Bros. Maps Lioman Stevens Marshall <& Thene. Inc. 27 LARGER PARCEL VALUATION - PARCEL 1 Lipman Stevens Marshall & Thene, Inc. 28 SALE SUMMARY TABLE No. Locatton/Buvr/S«ll«r 1 El Camino Real and Palomar Date Price Sla{AcrM) Grosafftet HAcn Land m Airport Road. Carlsbad Buyer Lennar Bressi Ranch Seller Mary Bressi Trust West side of El Camino Real south of La Costa Avenue, Carlsbad Buyer Continuing Life Communities Seller Carlsbad Partners Kelly Drive and El Camino Real Carlsbad Buyer Hillman Properties Seller Keity Family Investment South of Palomar Airport Road at Hidden Valley Road, Carlsbad Buyer MSP Calilfomia Seller Robert Kelly South side of El Camino Real, at Camino Hills Drive. Carlsbad Buyer Shea Homes LP Seller George Wimpey Inc. South of Calavera Lake, north of El Camino Real. Carlsbad Buyer Lyon/Copley Carlsbad Assc. Seller Gary Robertson 5-Mar-97 $8,531,684 30-Sep-97 $4,750,000 27-Sep-96 $4,000,000 6-Mar-95 $2,750,000 14-Apr-95 $7,350,000 7-Apr-93 $1,417,000 ZonloQ/GP Commenta 558.20 $15,284 Zone; L-C Raw att* «dh no d««)opment plans GP:UA,0S. CurrwiflyuaadforhrnMig. 281.24 100 432.22 133 56.3 128.1 109.45 $16,889 $9,255 $48,845 $12,947 RLM Zone: P-C GP: OS. RMH Zone: P-C GP: OS, RM Raw tM wilh nodavaiopmanl plans Nat uaabts acraaga asbnaM at 10O*A Prica par nat aaa • $47.500«c Floodplain from 8alk)utoa Lagoon wilhin parcaL Raw lita wtti no davelopmant planning Nat usabta acreaga aaSmMad ari 33 ac FloodpMn or Agua Hadonda Uvioon up moat o( (ha opan spaca dadcaUon. Zone: RD-M-Q Raw sta with tantaBvaaubtMaion map GP:RM approve. Mostly uv^ wih ocaanviawa $57,377 Zone: R-A-10 Raw sita with approvadtantMm GP: OS, RLM subdMalonmapfbrlMSFR^ Zone: L-C GP: OS. RL Raw s«a purchasad for haUal mUgalion Robtg his, dbt trait Lipman Stevens Marshall & Thene, Inc. 29 LARGER PARCEL VALUATION - PARCEL 1 Sale Comparable Analysis A brief discussion of each sale comparable follows. m ^ Sale 1 is the purchase of a 558-acre parcel located on the south side of ^ Palomar Airport Road, east of East Camino Real in Carlsbad. This large site was purchased raw without mapping entitlements. The property has underiying general plan land use designations for low to medium iM residential development, open space and an unplanned area. The property is currently used for fanning. The buyer also purchased a single out-parcel in the center of tiiis large property ovraed by Mr. Addis. The • parcel is improved with a single-family residence and a 22-acre site. The ^ purchase price for tiiat parcel was $2,800,000. The combined average ^ price for the total 580-acre assemblage is $19,860 per acre. Overall, this sale is comparable to the subject after an upward adjustment for m improving market conditions and increasing land prices over the past m year. In general, I have docimiented overall residential finished lot prices increasing at a rate of aroimd one percent per month for the past year. • Sale 2 is a 281-acre parcel located on the west side of El Camino Real, ^ south of La Costa Avenue in Carlsbad. The property was purchased in a raw condition without mapping entitlements. There is a large portion of the property located in the Encinitas Creek floodplain which is unusable. « The usable portion is located near the southem and westem property M boundary. The zoning and general plan designations are comparable to the subject. This sale required upward adjustments for an inferior date of ^ sale and an inferior topography due to the large amount of undevelopable • land. ^ Sale 3 is a large ownership transfer located just southwest of the subject on the south side of El Camino Real between Kelly Drive and Hidden m Valley Road. The property was sold subject to prior encumbrances and il agreements for dedication of over 300 acres of open space within the Agua Hedionda Lagoon floodplain. The net usable area is aroimd 133 "* acres. The property sold in a raw condition, without mapping • entitlements. An upward adjustment is needed for the older date of sale ^ and the inferior topography. An upward adjustment was also applied for distressed sale circumstances because of financial difficulty by the seller. Sale 4 is the sale of the Kelly property located south of Palomar Airport Road on Hidden Valley Road. This is a residentially zoned site with an approved tentative subdivision map. The property is near the top of a hill Lipman Stevens Marshall & Thene, Inc. 30 LARGER PARCEL VALUATION - PARCEL 1 and has good area views that extend to the ocean. This sale has been adjusted upward for inferior market conditions; downward for a superior size (smaller parcel); downward for a superior topography and downward for superior land planning in place. Sale 5 is a 128-acre parcel located south of El Camino Real near Camino Hills Drive. This property is across El Camino Real from the subject The property had rolling terrain and portions were moderately sloping, requiring open space dedication. The sale is inferior due to older market conditions and superior due to a smaller parcel size and superior land planning. The site had tentative map approval for 194 residential lots with an average lot size aroimd 7,500 square feet. Sale 6 is a purchase of a 109-acre parcel located to the north of the subject along the same private road easement that borders the subject. The parcel was purchased in 1993 for offsite mitigation for an adjacent residential project knovra as Calavera Hills. The property has rolling terrain and is on the south side of Lake Calavera. This was a raw, unentitled parcel. The sale was adjusted upward for inferior market conditions since 1993 and upward for an inferior location, farther from existing development. A downward adjustment was made for the smaller parcel size. A comparison grid has been prepared, comparing the sale data with major areas of differences to the subject. A summary of this table follows. Lipman Stevens Marshall & Thene, Inc. 31 I tl II fl il Kt li li II ii ii ii ii ii ii ii ii ii i LAND SALE COMPARISON TABLE Ekmant of Comparison Subjact 1 2 3 4 5 6 Proparty/Location El Camino Raal EI Camino Raal & El Camino Raal & El Camino Raal & South of Palomar Airport El Camino Raal at South Of Calavara Lska Carlabad Palomar Airport Road La Coata Avanua KalyDffva Road. HUdan Vafay Rd Camino HlaDriva Noith of El Camino Raal Carisbad Cailsbad Cartabad Cwlabad Cartabad Cartsbad SalaOata S-Mar-67 30-Sap-97 27-Sap-86 e-Mar-86 14-Apr-eS 7-Apr-93 Land Araa (Acras) 558.2 GnM« 281.24 Groaa 432.22 Groaa se.3 Groaa 128.1 Groaa 108.45 Groaa Zoning L-C P-C P-C RD-M-Q R-A-10 L-C LandSlatua Raw, no mapping Raw, no mapping Raw, no mapping RawwHhtsnt Map Raw with tsnt Map Raw SalaPrica $8,531,684 $4.^.000 $ 4.000,000 $Z750,000 $7,360,000 $ 1,417,000 Adjustmant Analysis Sals Prica/AC Lartd $15,284 $16,869 $9,2S5 $48,645 $57,377 $12,947 MJustnwnts: Rights Tranatarrad Faa 0% Faa 0% Faa 0% Faa 0% Faa 0% Faa 0% Financing Markat 0% Markat 0% Markat 0% Markat 0% Markat 0% Marital 0% Conditiona of Sala Oiatraaaad 10H Markat 0% Oiatraaaad 10% Markat 0% Marttat 0% Markat 0% Markat Conditions Inlarior Infartor Infartor JSOi tnfarior tnfsrior Interior 25% Adjustad VAC Land $18,647 $18,410 $12,031 $58,615 $68,852 $16,163 LocaOonmiyMcal A^utlmtiHi Locattonn/iaibility Comparabia 0% Comparabia OH Comparabia 0% Comparabia 0% Comparabia 0% Infanor 20% Siza/Sh^ Comparabla 0% Comparabia 0% Comparabia 0% Suparior -20% Suparior -10% Suparior -10% Topography/Physical Comparabia 0% Intarior 30% Intarior 70% Suparfor -10% ConHMvabla 0% Comparabia 0% Zoning Comparabla 0% ComparaUs 0% Comparabia 0% oompafma 0% Compmttim 0% Comparabia 0% Land Planning Comparabia 0% Comparabia 0% Comparabta 0% Si^arfcir -33% Suparior -33% Comparabia 0% Othar N/A QK N/A WA N/A oak N/A Q!k N/A S3i fMAdjustmant% 0% 30% 70% -63% -43% 10% Adjuatad $/AC Land $18,647 $23,932 $20,453 $21,687 $39,246 $17,602 LARGER PARCEL VALUATION - PARCEL 1 ** Conclusion of Value • Larger Parcel The adjusted market data indicates a range of prices from around ^ $18,000 per acre up to $39,000 per acre. The average adjusted price is $23,627 per acre. Sales 3, 4 and 5 required the most amount of adjustment and are considered less reliable. It appears that the value is mm bracketed between $20,000 to $25,000 per acre. I have concluded at a M value estimate of $25,000 per acre for the subject property. 365.88 acres x $25,000 per acre - $9,147,000 Indicated Value of Larger Parcel $9,150,000 m Lipman Stevens Marshall & Thene, Inc. 33 JUST COMPENSATION ANALYSIS Valuation of Part tti to be Acquired The value of the part to be acquired is based on applying the underlying li unit value of the land for the area to be acquired. The unit value of $25,000 per acre was estimated in the previous section and is used in this analysis. The percentage of rights acquired varies according to the type of easement and corresponding restrictions on use of the land. The proposed easement is for utility purposes to facilitate the installation and maintenance of an underground 12-inch sewer line and a future reclaimed water line project. The sewer line will coimect a proposed residential subdivision to the north in the Calavera Hills community to an existing sewer main in El Camino Real. The easement will also grant the right of access along the easement for maintenance purposes. The service roadway will follow the existing 60-foot wide road easement (of which 30 feet is within the subject parcel boundary.) The impact of the proposed utility easement is judged based on the remaining use potential of the property as compared to in the before condition. Within an area unencumbered by any other easements (fee area), the easement will preclude any building improvements. Parking, minor landscaping and other similar uses would be typically considered compatible with an underground utility easement. Land usually has its greatest value when improvement can occur without restriction. It is my opinion that an underground utility easement acquires approximately 50 percent ofthe total fee rights to a previously unencumbered parcel. In the case of a portion ofthe subject, the proposed easement falls within an area of a pre-existing easement. I have not been provided with a title report for the subject parcel, however, the easement plat indicates that there is a 60-foot wide road easement that follows the boundary of the subject and the adjacent parcel. This easement has been in place for a number of years and provides access to parcels located north and east of the subject. The easement encumbers 30 feet of the subject and most of the proposed utility easement lies within this road easement. A road easement is one of the most restrictive types of easement since no permanent stmctures, landscaping or parking would be permitted. Also, Lipman Stevens Marshall & Thene, Inc. 34 EASEMENT VALUATION - PARCEL 1 the easement allows use and access by others across the subject property. A road easement typically encumbers over 75 percent of the underlying fee rights. The addition of a utility easement to this previously encumbered area has a nominal impact on the underlying remaining fee rights. I estimate the value of the proposed utility easement for that portion within the existing road easement at 10 percent of the underlying ^ fee rights. ~ Since there are no stmctural improvements within the area proposed for the utility easement, only land value is included in the compensation _ estimate. The existing road easement is paved with asphalt, however I have been told that the paving will be replaced after constmction of the project and installation of the sewer line. Since the pavmg will be — replaced and the road constmcted to a condition similar to the before ^ condition, no compensation is due for site improvements. A summary of the valuation for the proposed acquisition of the utility easement follows. Area (SF) $/SF % Fee Value Easement Fee Area; 1,673 $0.57 50% $477 -i Encumbered Area: 33,872 $0.57 10% $1.931 •• Total Acquisition 35,545 $2,408 m ^ Value of Remainder Parcel - Before Condition The value of the remainder parcel in the before condition is based on m deducting the value ofthe part to be acquired from the value of the larger H parcel and is a mathematical calculation without any further valuation analysis. It does not consider any potential severance damages or special • benefits to the remainder parcel due to the constmction and taking in the i* maimer proposed. This will be evaluated in the next section. Value of tiie Larger Parcel (Land Only) $9,147,000 Value of Part to be Acquired $2.408 Value of Remainder Parcel (Land Only) $9,144,592 Lipman Stevens Marshall & Thene, Inc. 35 EASEMENT VALUATION - PARCEL 1 Value of Remainder Parcel - After Condition The next step in the analysis is to estimate the fair market value of the remainder parcel in the after condition, after acquisition of the easement and constmction ofthe project in the manner proposed. This analysis is again made on the basis of land value. 1 have analyzed the proposed acquisition and find that it will not affect the existing improvements. Therefore, a valuation of land only is required to assess whether there are any damages or special benefits to the remainder parcel. The remainder parcel will continue to contain a total gross area of 365.88 acres. The parcel will now be additionally encumbered with a utility easement allowing constmction of an underground sewer line and at some time in the fiiture a reclaimed water line. The easement will be mostly contained within an existing 60-foot wide road easement along the property boundary. The general utility of the larger parcel has not diminished due to the imposition of the additional easement. The impact of the easement on the underlying fee land and the adjacent property is considered nominal. The unit value of the remainder parcel is therefore considered to be the same as in the before condition. The overall property value has been reduced by the impact of the new easement acquisition. No severance damages or special benefits are applicable for this easement acquisition. The value of the remainder parcel in the after condition, (after consideration of the easement acquisition and constmction) follows. Value of Remainder Parcel - After Condition: $9,144,592 Damages and Special Benefits ii The last step in the analysis of just compensation for the part to be acquired is consideration of any severance damages and/or special benefits which may accme to the remainder parcel. Severance damages are defined as a diminution in the value of the remainder parcel as a result of the taking and constmction of the project. Severance damages are compensible to the property owner under state law. I have analyzed the proposed taking and project constmction and find no severance damages applicable to this acquisition. Special benefits are generally defined as an increase in the value of the remainder parcel as a result of the taking and constmction of the proposed project. Special benefits can be used to offset any severance damages created by the project, but can Lipman Stevens Marshall & Thene, Inc. 36 EASEMENT VALUATION - PARCEL 1 not reduce the amount of compensation for the part acquired. No special benefits exist for this project. Severance Damages: Special Benefits: None None Value Summary - Parcel 1 Value of Larger Parcel - Before Condition: Value of Part to be Acquired Value of Remainder Parcel - Part of Whole: $9,147,000 $2.408 $9,144,592 m Value of Remainder Parcel - After Condition: Severance Damages Special Benefits Just Compensation Summary: Value of Part Acquired - Land Total Just Compensation (rounded) $9,144,592 None None $2,408 $2,400 Lipman Stevens Marshall & Thene, Inc. 37 Mi PARCEL 2 - WESTERN LAND DEVELOPMENT Lipman Stevens Marshall & Thene, Inc. 38 ASSESSOR PLAT MAP - PARCEL 2 SESSOR Lipman Stevens Marshall & Thene, Inc. 39 SITE ANALYSIS - PARCEL 2 Location The property is located at the southeast quadrant of El Camino Real and Calaveras Drive in Carlsbad. San Diego County Assessor records indicate the mobile home park has a current situs of 5200 El Camino Real, Carlsbad, Califomia. Current Use Apparent Owner Sale History m The property is improved with a 502-space mobile home park known as the Rancho Carlsbad Mobile Home Park. A 2.02 acre strip of land abuts the mobile home park to the east and a 17.63 acre tract of land which abuts the northeast comer of the park is used for recreation and RV parking. Westem Land & Development Co. The current vesting in Westem Land & Development Company has existed since 1987. The subject property is currently being mapped as a condominium project and to be sold to individual homeowners. A condominium plan has been recorded for Rancho Carlsbad Country Club Estates on Febmary 19, 1998 per document number 1998-0085694. Through this process, the park tenants are given an opportunity to purchase their lot and have a condominium-style ownership in the park. There will be 502 individual lots plus common area parcels which include the surrounding open space, recreation facilities, office, clubhouse and private streets. Each owner will have an interest in the common area. Assessor's Information Assessor Parcel Nos. 168-050-23,24; 209-060-03 Assessed Value (Combined): Land $2,410,144 Improvements $4,620.032 Total $7,030,176 Real Estate Taxes & Special Assmts: $83,330.62 Tax Rate Area: Tax Rate: 09-013 & 09-162 1.05242% Legal Description The larger parcel is legally described as portions of Lot "D" of Map No. 823 within Rancho Agua Hedionda. A title report was not provided for Lipman Stevens Marshall & Thene, Inc. 40 SITE DESCRIPTION - PARCEL 2 this appraisal, therefore a complete legal description cannot be provided. This is a partial legal description provided for informational purposes only. Zoning The subject is located vwthin RMHP zone for the City of Carlsbad. This is a Residential Mobile Home Park zone. Only mobile home parks, either in rental form or as condominium ownership may be developed in this zone. A mobile home park permit is required for development under this zone. The minimum site area per mobile home is 3,500 square feet except that 15 percent of the sites may have areas of 3,000 square feet to accommodate 20-foot wide homes. General Plan Site Size/Shape Larger Parcel The Carlsbad general plan designates the subject as RM, representing medium residential development. This density is described as a range of four to eight dwelling units per gross acre. The total site is an irregularly shaped comer parcel situated at the southeast quadrant of El Camino Real and Calaveras Drive. The Assessor plat maps for the property mdicate the total parcel contains 106.04 acres which is comprised of four assessor parcel numbers as follows: APN 168-050-23 APN 168-050-24 APN 209-060-03 Total Larger Parcel 17.63 acres 86.39 acres 2.02 acres 106.04 acres m I note that there is an additional parcel of land under the Westem Land & Development Company ownership adjacent to the east of the subject containing 49.89 acres. This parcel appears to be used in conjunction with the adjacent public golf course and is not a part of the mobile home park. Therefore, it has not been considered part of the larger parcel for valuation purposes. Proposed Acquisition Area Easement Acquisition: 1.975 acres or 86,031 square feet The proposed sewer easement consists of two separate strips of land situated along the northwest boundary of the property. Nearly all of the easement area is located on Assessor Parcel Number 168-050-24, one of Lipman Stevens Marshall & Thene, Inc. 41 il SITE DESCRIPTION - PARCEL 2 Topography m m Access Environmental/Soils the mobile home park parcels. The easement area foUows the irregular angles at the properties westem boundary and continues along the northerly boundary about 1,521 linear feet. The second easement area begins slightly east and continues in a northeasteriy direction along the property boundary extending just beyond tiie boundary of APN 168-050- 24 and into APN 168-050-23. Most of the proposed easement area is within the boundaries of an existing road easement. The subject property has generally level to gently sloping terrain. The majority ofthe site is developed with a mobile home park and associated site improvements. Assessor Parcel 23 is partially improved, with the balance in a natural state or in agricultural use. The Agua Hedionda Creek crosses through tiie center of the property and exits at the soutiiwest property comer. The creek flows southwest and is contained within a rock-lined channel. Calaveras Lake Creek follows the northwestem property boundary and is also contained within a rock-lined creek bed. This creek joins with Agua Hedionda Creek near El Camino Real and crosses under the roadway. Access to the subject is from El Camino Real, a primary north/south arterial with full street improvements. A 60-foot wide private road easement is located adjacent to the northwestem property boundary, with 30-feet encumbering the subject This road is partially paved and used for access by property owners to the north. The subject does not take access from this road and a masonry fence separates the road from the mobile home park. Access into the mobile home park is also shared by the public golf course located adjacent to the east. Access is controlled by a security guard employed by the park. Parcel 03 appears to encompass this access road. I am not aware of any environmental contamination of this property. Although no obvious signs of contamination were noted during the property inspection, I am not qualified to detemiine the presence of environmental or soil contamination. I have not been provided with an environmental assessment or this property, therefore, tiiis valuation assumes that the site has stable soils and no soil contamination. Utilities All available utilities serve the mobile home park. Lipman Stevens Marshall & Thene, Inc. 42 ii Ml SITE DESCRIPTION - PARCEL 2 Coastal Zone The subject property is located outside of the coastal zone boundary. Flood Zone The property is located in Flood Zone C, an area of minimal flooding, and Flood Zone A, an area of 100-year flood per FEMA Map 060285- 00IOC. The Zone A portion is within the flood plain of the Agua Hedionda Creek. Only the chaimel portion of the property is within this zone. The balance is designated as Zone C. The Calaveras Lake Creek area is not designated as a flood zone. Earthquake Hazard The subject property is not within an identified Alquist-Priolo Earthquake Special Studies Zone. Surrounding Land Uses m Easements and Restrictions mn m North: Calaveras Road; vacant acreage designated as L-C zoning East: Golf course West: Acreage used for agricultural purposes South: El Camino Real; mixture of single-family residential and vacant land I have not been provided with a copy of Preliminary Title Report or Titie Policy for this property. This appraisal assumes there are no easements or restrictions which would adversely impact the sale or development of the property. Existing Improvements m m The westem portion ofthe subject property consists of a 502-uiiit mobile home park. The park has recreation facilities including a pool, clubhouse, tennis courts and an RV storage area. The park is fully developed and has an average density of 5.8 units per gross acre based on the developed 86-acre portion of the property. The northeasterly portion is non-irrigated acreage partially improved with two tennis courts, a grass field, an enclosed RV storage area and a garden plot for mobile home park tenants. Since no building improvements are situated within the proposed easement area, the improvements are described for informational purposes only. The improvements have not been valued as part of the larger parcel. Lipman Stevens Marshall & Thene, Inc. 43 HI Ml SITE DESCRIPTION - PARCEL 2 Inspection Date July 19, 1998 (most recent inspection date) Mike Churchill at Westem Land & Development was contacted and he declined to meet me during the property inspection. 1 was given permission to view the property. HIGHEST AND BEST USE Highest and Best Use As Vacant The "highest and best use" is a key element in valuing the Subject Property. Highest and best use is an estimate of that use which provides the highest net retum to the land and fits witiiin the legal and physical constraints of the property. The use is not a fact to be found but based upon a knowledgeable opinion. Further, it should consider the special marketable characteristics ofthe subject and operate v«thin the limits of pmdent and justifiable mvestment. For valuation purposes, the highest and best use of the subject is found for the site, as if vacant, and for the total property, as improved. However, since the improvements are not being valued as part of tiiis report, only the highest and best use as if vacant is estimated. The subject property is a 106-acre parcel improved with a 502-unit mobile home park. The property is zoned for mobile home park use. No other uses are allowed unless the property applies for a rezone. The site is generally level and physically suited for a mobile home park development. Based on this analysis, tiie highest and best use for the subject property is for mobile home park development. m m Lipman Stevens Marshall & Thene, Inc. 44 TOPOGRAPHIC MAP m m m BEST C Lipman Stevens Marshall & Thene, Inc. 45 SUBJECT PROPERTY PHOTOGRAPHS View looking north across El Camino Real toward main entrance to Subject View of rear undeveloped portion of subject larger parcel looking northeast Lipman Stevens Marshall & Thene, Inc. 46 SUBJECT PROPERTY PHOTOGRAPHS Continued... Looking north along area of proposed easement, just north of El Camino Real (westem property boundary) Looking south along area of proposed easement near northwest property comer and and 60-foot road easement Lipman Stevens Marshall & Thene, Inc. 47 PROPOSED ACQUISITION PLAT - Page 1 Ml LOT B FiANCHO AQUA HBDJONDA MAP NO. 823 EXISTING 60' WIDE EASEMENT RESERVED FOR ROAD PURPOSES RECORDED 4/01/58. FILE NO. 51674. BK. 7016. PG. 536. O.R. \ EXIST. EASEMENT TO S.D.G.AE CO. REC. 10/20/1948 IN BK. / 2988. PG. 458, O.R.-^ I V' ^''' APN 168-050-24 y^rp^^^f' or S MAP NO. 6616 I I LEGEND: ^3 INDICATES SEWER EASEMENT PARCEL B = 0.724 ACRE HUNSAKER &. ASSOCIATES i At* DIICCl INC n*M»IC vn HUBntlnnt St Slitt lOD aXVEVMC PH((DBSS4500-FXKlAS5S-M14 CC9t\Q05faW7.0K SCALE 1" = 3ra' SHEET 2 OF 2 SaVE/? EASEMENT PLAT ~ CHY OF CARLSBAD APPUCANT: UcUILLlN CCXPANieS 2727 HOOVER AVE. NATIONAL CITY, CA 92050 (619) 793-2850 PREPARED BY: JOHN W. HILU JR. LS. 5663 EXPIRES: 9/30/99 PROJECT: SEWER EASEMENT CM.W.D. 84-501 A.P.N.: 168-050-23 lc 24 EXHIBIT "n" Lipman Stevens Marshall & Thene, Inc. 48 PROPOSED ACQUISITION PLAT - Page 2 Lor s FiANCHO AGUA HBDJONDA MAP NO. 323 EXISTING 60' WIDE EASEMENT RESERVED FOR ROAD PURPOSES RECORDED 4/01/58. RLE NO. 51674. BK. 7016. PC. 536. O.R. / / P.O.B. PARCEL A APN 168-050-17 J / \APN 168-050-23 NW'LY. LINE OF PARCEL 2 OF FILE NO. 1996-0327916. O.R. EXIST. EASEMENT TO S.D.G.AE. CO. RECORDED 10/20/1948 IN BOOK 2988. PG. 458. O.R. ' F< OF 3 MAP NO. BB16 LEGEND: F^ INDICATES SEWER EASEMENT PARCEL A = 1.251 ACRES HUNSAKER &ASSOCL\TES IAN DIfCa INC SUtVEHC nttWSMSOO • FXfeMSSS-KH oo5i\otaiawjmc 300 SCALE r = 300" S^€ET 1 OF 2 SEWER EASEMENT PLAT - CRY OF CARLSBAD APPLICANT: UcMILLIN COU=>ANIES 2727 HOOVER AVE. NATIONAL CITY, CA 92050 (519) 793-2850 PREPARED BY: JOHN W. HU. JR. LS. 5669 EXPIRES: 9/30/99 PROJECT: SEWER EASEMENT C.M.W.D. 84-501 A.P.N.: 168-050-23 fc 24 EymmT "B" Lipman Stevens Marshall & Thene, Inc. 49 VALUATION - PARCEL 2 Introduction Compensation for the part to be acquired is normally based on the unit value of the underlying land as considered part of the larger parcel. However, exceptions to this technique are applied when the part to be acquired has a different utility or highest and best use compared to the rest of the larger parcel. The larger parcel is defined as the sum of the property found under the same ownership, having contiguity of location and of a similar use. The larger parcel has been identified through public records available to the appraiser and is assumed to be correct. The proposed utility easement is to be located primarily within an existing 60-foot wide private road easement. The road is located outside of the fenced mobile home park boundary but stradles the legal lot line on the northwest side. This area is considered common area according to the Rancho Carlsbad Country Club Estates condo plan. It is included with the adjacent Calaveras Lake Creek as it follows the northem edge of the property. The area of the proposed easement is vnthin the common area of the mobile home park. I have valued the land under the easement area based on general open space and agricultural use land sale data. The unit value of the improved portion of the mobile home park has not been estimated since it is not affected by the proposed acquisition. An opinion of the value of the larger parcel is therefore not provided for this property. The valuation technique used in this analysis follows the zones of value theory which recognizes the fact that different portions of the property contribute value at differing rates. The improved portion of the mobile home park has a significantly higher unit value than does the adjacent open space and unusable area. Since the proposed easement acquisition is from land not considered usable to the existing park, it is valued separate from the improved portion of the park. A sales search was made for land sales of property with a general land use for agricultural, open space or as an interim use, holding for future residential development. The market area searched included most of the northem area of San Diego County. Several comparable sales were found and those most similar in size and physical characteristics were selected for analysis. A summary of the comparable market data items follows, with analysis and conclusions following the data summaries. Lipman Stevens Marshall & Thene, Inc. 50 SALE LOCATION MAP Lioman Stevens Marshall & Thene. Inc. 51 ti 11 ti ii ii m § ii ii II ii ii ii ii ii ii ii ii ii fi •s* 5 » E3 C/3 < n s cr n D No. Locatlon/Buyer/Seller 1 North of El Camino Real Carlsbad Buyer Carlsbad Unified School Dist Seller Holly Springs Ltd. 2 South of N. River Road Oceanside Buyer Valley \^ew Investments Sailer Singh Property Mngmt 3 South of Palomar Airport Road at Hidden Valley Road, Cartsbad Buyer MSP Calllfomia Seller Robert Kelly 4 South side of El Camino Real, at Camino Hilts Drive, Carlsbad Buyer Shea Homes LP Seller George Wimpey Inc. 5 South of Calavera Lake, north of El Camino Real, Carlsbad Buyer Lyon/Copley Carlsbad Assc. Seller Gary Robertson COMPARABLE SALE SUMMARY TABLE Size (Acres) Date Price Gross/Net $/AcreLand Zonlnp/GP Comments i^ui-9e $400,000 27-Jan-97 $1,400,000 &-Mar-95 $2,750,000 14-Apr-95 $7,350,000 7-Apr-93 $1,417,000 15 126.29 56.3 128.1 109.45 $26,667 Zone: L-C GP: RLM $11,086 Zone:A-20 Raw aits vAh no daveiopment plans Suysr to use for expansion site of future high school parcel Raw site with no daveiopment pianning Roftng teaain being farmed. Southern portion of site within flood plain $48,845 Zone: RD-M-Q Raw site WMI tentative sutKlivision map GP: RM approval. UotOf usabte with ocean views $57,377 Zone: R-A-10 Raw sits with approved tentative GP: OS, RLM subdivMon map for 184 SFRV $12,947 Zone: L-C Raw site purchased for habitat mitigation GP: OS, RL RfriNng his. dirt trtf access 0) > 1" m CO c s 3 > w r-m VALUATION ANALYSIS - PARCEL 2 Sale Comparable Analysis A brief discussion of each sale comparable follows. Sale 1 is the recent purchase of a 15-acre parcel by the Carlsbad Unified School District. This parcel is one ownership north of the subject larger parcel. The sale is considered a current market transaction and is directly comparable to the subject. Sale 2 is the purchase of a 126-acre tract located on the south side of North River Road and north of Mission Avenue in Oceanside. The property is used as a farm and the new buyer will also continue the farm use. A portion of the site along the southem boundary is within the floodway and floodplain of the San Luis Rey River. This sale is considered inferior in location to the subject. In general, property values are lower in the Oceanside market compared to Carlsbad. An upward adjustment has been applied for the older date of sale. The topography is inferior to the subject due to the unusable floodplain area within the gross acreage. Sale 3 is the sale of the Kelly property located south of Palomar Airport Road on Hidden Valley Road. This is a residentially zoned site with an approved tentative subdivision map. The property is near the top of a hill and has good area views which extend to the ocean. This sale has been adjusted upward for inferior market conditions; downward for a superior topography and downward for superior land planning in place. Sale 4 is a 128-acre parcel located south of El Camino Real near Camino Hills Drive. This property is across El Camino Real from the subject The property had rolling terrain and portions were moderately sloping, requiring open space dedication. The sale is inferior due to older market conditions and superior due to land planning. The site had tentative map approval for 194 residential lots with an average lot size around 7,500 square feet. A downward adjustment has also been applied for a superior location, with this property located closer to existing development and infrastmcture. Sale 5 is a purchase of a 109-acre parcel located to the north of the subject along the same private road easement which borders the subject. The parcel was purchased in 1993 for offsite mitigation for an adjacent residential project known as Calavera Hills. The property has rolling terrain and is on the south side of Lake Calavera. This was a raw. Lipman Stevens Marshall & Thene, Inc. 53 VALUATION ANALYSIS - PARCEL 2 unentitied parcel. The sale was adjusted upward for inferior market conditions since 1993 and upward for an inferior location, farther from existing development. An upward adjustment was made for an inferior overall topography and usable area. A comparison grid has been prepared, comparing the sale data with major areas of differences to the subject. A summary of this table follows. Lipman Stevens Marshall & Thene, Inc. 54 ii ii il ii ii ii fti ii ii ii ii ii ii ii ii ii ii ii ii Elenrtent of Comparison Property/Location Subject 1 2 3 4 5 South of N. River Road South of Palomar /Airport El Camino Real at South of Calavera Lake Carlsbad Oceanskle Road. Hidden Valley Rd Camino Hills Drive North of El Camino Real Carlst>ad Carlsbad Carlsbad 1^ul-98 27^an-97 14-Apr-9S 7-ADr-93 15 Gross 126.29 Gross 56.3 Gross 128.1 Gross 109.45 Gross L-C A-20 RD-M-Q R-A-10 L-C Raw, no mapping Agricultural use Raw with tent. Map Raw wHh tent. Map Raw (400.000 $1,400,000 $2,750,000 $7,350,000 $ 1.417.000 $26,667 $11,086 $48,645 $57,377 $12,947 Fee 0% Foe 0% Fee 0% Fee 0% Fee 0% Markat 0% Market 0% Market 0% Market 0% Market 0% Market 0% Market 0% Market 0% Market 0% Market 0% Current Inferior 15% Inferior 20% Inferior 20% Inferior 25% $26,667 $12,748 $58,615 $68,852 $16,183 Comparable 0% Inferior 30% Comparable 0% Superkir -20% Inferkir 10% Comparable 0% Comparable 0% Similar 0% Comparable 0% Comparable 0% Compa rattle 0% Inferior 20% Superkir -10% Comparable 0% inferior 10% ComparaUe 0% Comparable 0% Comparable 0% Comparable 0% Comparable 0% Comparable 0% Comparable 0% Superior -33% Supertor -33% Comparable 0% N/A Q3k N/A Q3i N/A N/A fiSi N/A OS 0% 50% -43% -53% 20% $26,667 $10,123 $33,410 $32,361 $19,420 Parcel 2 Carlsbad Sale Dale LarxJ Area (Acres) Zoning Land Status Sale Price Adjustment Analysis Sale PrIce/AC Land Adjustments: Rights Transferred Financing Condttnns of Sale Market Coriditions Adjusted $/AC Land Location/Physical AdfuitiiMnU: LocaUon/S/isitMlity Size/Shape Topography/Physical Zoning L^nd Planning Other Net Adjustment % Adjusted $/AC Land | VALUATION ANALYSIS - PARCEL 2 Conclusion of Value The adjusted market data indicates a range of prices from around $19,000 per acre up to $33,000 per acre. The average adjusted price is $26,196 per acre. Sales 2, 3 and 4 required the most amoimt of adjustment and are considered less reliable. It appears that the value is bracketed between $25,000 to $33,000 per acre. I have concluded at a value estimate of $30,000 per acre for the subject property open space land. This opinion of unit value does not apply to the improved portions ofthe mobile home park. Lipman Stevens Marshall & Thene, Inc. 56 m JUST COMPENSATION ANALYSIS m m Valuation of Part to be Acquired The value of the part to be acquired is based on applying the underlying • unit value of the land for the area to be acquired. The unit value of • $30,000 per acre is converted to an equivalent value of $0.69 per square ^ foot. This is considered the contributory value of the common area and open space land as part of the larger parcel which consists of the mobile home park. an ^ The percentage of rights acquired varies according to the type of easement and corresponding restrictions on use of the land. The ^ proposed easement is for utility purposes to facilitate the installation and • maintenance of an undergroimd 12-inch sewer line and a future reclaimed water line project. The sewer line will connect a proposed residential subdivision to the north in the Calavera Hills community to an existing sewer main in El Camino Real. The easement will also grant m the right of access along the easement for maintenance purposes. The ^ service roadway will follow the existuig 60-foot wide road easement. ^ The impact of the proposed utility easement is judged based on the remaining use potential of the property as compared to in the before ^ condition. Within an area unencumbered by any other easements (fee area), the easement will preclude any building improvements. Parking, minor landscaping and other similar uses would be typically considered m compatible with an underground utility easement. Land usually has its lg greatest value when improvement can occur without restriction. It is my opinion that an underground utility easement acquires approximately 50 • percent ofthe total fee rights to a previously unencumbered parcel. There are 43 square feet proposed to be acquired which is located in an unencumbered fee area. w In the case of a portion of the subject, the proposed easement falls within m an area of a pre-existing easement. I have not been provided with a title ^ report for the subject parcel, however, the easement plat indicates that there is a 60-foot wide road easement that follows the boundary of the • subject and the adjacent parcel. This easement has been in place for a number of years and provides access to parcels located north and east of the subject. The easement encumbers 30 feet of the subject and most of Lipman Stevens Marshall & Thene, Inc. 57 VALUATION ANALYSIS - PARCEL 2 the proposed utility easement lies within this road easement. A road easement is one of the most restrictive types of easement since no permanent stmctures, landscaping or parking would be permitted. Also, the easement allows use and access by others across the subject property. A road easement typically encumbers over 75 percent of the underlying fee rights. The addition of a utility easement to this previously encumbered area has a nominal impact on the imderlying remaining fee rights. I estimate the value of the proposed utility easement for that portion within tiie existing road easement at 10 percent of tiie underlying fee rights. There are a total of 85,988 square feet which is to be acquu-ed and are also located within the existing road easement. Since there are no stmctural improvements within the area proposed for the utility easement, only land value is included in tiie compensation estimate. The existing road easement is paved with asphalt, however I have been told that the paving will be replaced after constmction of the project and installation of the sewer line. Since the paving will be replaced and the road constmcted to a condition similar to the before condition, no compensation is due for site improvements. A summary of the valuation for the proposed acquisition of the utility easement follows. Easement Fee Area: Encumbered Area: Total Acquisition Area (SF^ SZSE % Fee Value 43 85,988 86,031 $0.69 $0.69 50% $15 10% $5.933 $5,948 Value of Remainder Parcel - After Condition The next step in the analysis is to estimate the fair market value of the remainder parcel in the after condition, after acquisition of the easement and constmction of the project in the manner proposed. This analysis is again made on the basis of land value. I have analyzed the proposed acquisition and find that it will not affect the existing improvements. Therefore, a valuation of land only is required to assess whether there are any damages or special benefits to the remainder parcel. The easement will be mostly contained within an existing 60-foot wide Lipman Stevens Marshall & Thene, Inc. 58 VALUATION ANALYSIS - PARCEL 2 road easement along the property boundary. The general utility of the larger parcel has not diminished due to the imposition of the additional easement. The impact of the easement on the underlying fee land and the adjacent property is considered nominal. The unit value ofthe remainder parcel is therefore considered to be the same as in the before condition. The overall property value has been reduced by the impact of the new easement acquisition. No severance damages or special benefits are applicable for this easement acquisition. Severance Damages: Special Benefits: None None Value Summary - Parcel 2 Value of Part to be Acquired $5,948 Severance Damages Special Benefits None None Just Compensation Summary: Value of Part Acquired - Land Total Just Compensation (rounded) $5,948 $6,000 Lipman Stevens Marshall & Thene, Inc. 59 PARCEL 3 - CARLSBAD UNIFIED SCHOOL DISTRICT m m m Lipman Stevens Marshall & Thene, Inc. 60 PLAT MAP - PARCEL 3 /D 2AQ.42 S W COR LOT L- HBT'lQ-EfDd) 2640 PAR rtfl - i-VAP 323 Lipman Stevens Marshall & Thene, Inc. 61 w Ml Location Current Use Apparent Owner Sale History SITE ANALYSIS - PARCEL 3 The property is located along the east side of Calaveras Drive, three parcels northeast of El Camino Real in Carlsbad. The property is currently unimproved acreage with some portions of the property used for farmland purposes. Carlsbad Unified School District The larger portion of this property has not transferred in the past five years. The 15-acre portion of the property which is a part of Assessor Parcel 168-050-25 has been acquired from Holly Springs Ltd. in a recent sale. The escrow was to close in the near future and therefore I have been instmcted to consider this purchase as part of the larger parcel for the school district. The purchase price for the 15-acre parcel was reported at $400,000 or $26,667 per acre. The parcel has been included as part of the subject parcel through a Certificate of Compliance map process. Assessor's Information Assessor Parcel Nos. 168-050-19 & a portion of 168-050-25 Assessor Parcel No. 168-050-19 is not assessed due to public entity ownership. Legal Description m» m Zoning General Plan The larger parcel is legally described as a portion of Lot E of Miscellaneous Map No. 231, as a subdivision of Rancho Agua Hedionda. A title report has not been provided for this ownership. Therefore, this legal description is provided for informational purposes only. The subject is located within the L-C zone for the City of Carlsbad. This is a limited control zone which provides an interim zoning designation for areas where planning for fiiture land uses has not been completed or plans for development have not been formalized. The Carlsbad general plan designates the subject as H for high school use. The 15-acre portion of the property has the RLM designation, representing low to medium residential development. This density is described as a range of zero to four dwelling units per gross acre. Lipman Stevens Marshall & Thene, Inc. 62 SITE DESCRIPTION - PARCEL 3 Environmental/Soils to the southwest. The westem property boundary is shown on these maps as the north/south extension of College Boulevard, generally following the existing 60-foot wide private road easement. I am not aware of any environmental contamination of this property. Although no obvious signs of contamination were noted during the property inspection, I am not qualified to determine the presence of environmental or soil contamination. I have not been provided with an environmental assessment or this property, therefore, this valuation assumes that the site has stable soils and no soil contamination. The subject property is vdthin an area which has land designated for inclusion in the Carlsbad HMP. The HMP indicates that there are sensitive habitat and species located in the immediate area. I do not know if the core area designation applies to the subject, or if there are sensitive habitat and/or species on this property. An environmental assessment would be required to determine these factors. Utilities Coastal Zone The property consists of non-irrigated acreage. No utilities service the site. There does appear to be a water line crossing through this property. The subject property is located outside of the coastal zone boundary. Flood Zone Earthquake Hazard The property is located in Flood Zone C, an area of minimal flooding, per FEMA Map 060284-0775C. The subject property is not within an identified Alquist-Priolo Earthquake Special Studies Zone. Surrounding Land Uses North: South: East: West: Vacant acreage designated as L-C zoning Acreage used for agricultural purposes Vacant acreage designated as L-C zoning Vacant acreage designated as L-C zoning li Easements and Restrictions I have not been provided with a copy of Preliminary Title Report or Title Policy for this property. This appraisal assumes there are no easements or restrictions which would adversely impact the sale or development of the property. The existing 60-foot wide private road easement, of which 30 feet encumbers the subject's westem property boundary has been Lipman Stevens Marshall & Thene, Inc. 64 SITE DESCRIPTION - PARCEL 3 Existing Improvements noted and considered in this analysis. The subject property consists of vacant acreage and cropland, improvements are situated within the proposed easement area. No Inspection Date July 17, 1998 (date of most recent inspection) Mr. John Blair at the Carlsbad Unified School District was contacted regarding this project. He provided me with information regarding the pending purchase of the 15-acre parcel and gave me permission to inspect the property. HIGHEST AND BEST USE Highest and Best Use As Vacant mn m The "highest and best use" is a key element in valuing the Subject Property. Highest and best use is an estimate of that use which provides the highest net retum to the land and fits within the legal and physical constraints of the property. The use is not a fact to be found but based upon a knowledgeable opinion. Further, it should consider the special marketable characteristics of the subject and operate within the limits of pmdent and justifiable investment. For valuation purposes, the highest and best use of the subject is found for the site, as if vacant, and for the total property, as improved. Only the highest and best use as if vacant is applicable for this analysis. The property contains a total land area of 57.63 acres and is zoned limited control which is a holding zone until development defines the specific use of the property. The underlying general plan designation is for high school use on the original parcel and residential low to medium density for the 15-acre portion. If the property had not been designated as a school site it would likely have been given the RLM land use designation. The property has gently rolling terrain and is of sufficient size to support a school site. The highest and best use of the property would likely be holding for fiiture residential development as a non- public land use altemative and as a school site under the current zoning and planning designations. Lipman Stevens Marshall & Thene, Inc. 65 CERTIFICATE OF COIVIPLIANCE MAP N18*19'26"W 205.03' T.P.O.B. PARCEL 1 15.0 ACRES Noni'io'E 375.14' AaUA 0E£0) AP# 168-050-03 RANCHO LOT D LOT E HfiDJONOA OCEANSIDE-CARLSBAO UNIRED SCHOOL DISTRICT 42.633 ACRES AP# 168-050-19 m m JN06-06'45*W .51.76' DEED) N06'09*18'^V 451.70' 028 AP# 168-050-25 AP# 168-0S0-26 HOLLY SPRINGS, LTD. AP# 168-050-23 (N.A.P.) \ N 400' 200* Lipman Stevens Marshall & Thene, Inc. 66 TOPOGRAPHIC MAP m m m m m m Kl li Printed from TQPQ! ©1997 Wildflower ProdTictions (ww-.topccom) Lipman Stevens Marshall & Thene, Inc. 67 SUBJECT PROPERTY PHOTOGRAPHS View looking north toward subject larger parcel from south property comer Looking south along westem property boundary toward area of proposed easement Lipman Stevens Marshall & Thene, Inc. 68 SUBJECT PROPERTY PHOTOGRAPHS Continued... View looking south toward larger parcel and 15-acre acquisition parcel Looking north along area of proposed easement (westem property boundary) Lipman Stevens Marshall & Thene, Inc. 69 PROPOSED ACQUISITION PLAT - Page 1 m m EXISTING 60' WIDE EASEMENT -==~4J I RESERVED FOR ROAO PURPOSES iH RECORDED 4/01/58. FILE NO. • ' ' 5J674. BK. 7016. PG. 536. O.R. APN 168-050-17 W'LY. LINE OF RLE/PAGE NO. 218959. O.R. APN 168-050-25 8414'55'£ 30.22' . •—• \ NO. 218959. O.R. R OF S MAP NO. 6616 \ \ \ \ APN 168-050-19 LOT B 'iANCHO AGUA HBDJONDA y \ > MAP NO. 323 y y y y y / ^y APN 168-050-23 ^^'^y \^ P.O.B. SW'LY CORNER RLE/PAGE NO. 218959. O.R. M LEGEND: APN 168-050-26 HUNSAKER &ASSOCL\TES i » H OI(C(\ INC 77y\ INDICATES SEWER EASEMENT 1.274 ACRES 300 SmVEVWC PHtt 105*4500 - ndtMSSD-WM 0aS1\O03l(MO3.OWC 300 SCALE r = 300' 600 900 SHEET 1 OF 1 SEWER EASEMENT PLAT - CUY OF CARLSBAD APPLICANT: UcUILLlN COhPANICS 2727 HOOVER AVE. NATIONAL CITY. CA 92050 (619) 793-2850 PREPARED 8Y: JOHN W. HILL, JR. LS. 5669 EXPRES: 9/30/99 PROJECT: SEWER EASEMENT CM.W.D. 84-501 A.P.N.: 168-050-19 EXHIBIT "B" Lipman Stevens Marshall & Thene, Inc. 70 PROPOSED ACQUISITION PLAT - Page 2 P OF S MAP NO. 14813 Fi OF S MAP No. 6616 APN 168-040-30 LOT "D" LOT NORTHWEST CORNER OF RLE NO. 1995- 0100176. O.R. WEST UNE OF RLE NO. 1995-0100176, O.R. APN 168-050-17 EXISTING 60' WIDE EASEMENT RESERVED FOR ROAD PURPOSES RECORDED 4/01/58. RLE NO. 51674. BK. 7016. PG. 536 OF OFFICIAL RECORDS. APN 168-050-25 1 — JO' ^ ^ FiANCHO AGUA HBDJONDA MAP NO. 323 ' 30.22 LEGEND: HUNSAKER &.ASSOCL\TES iitN olfca INC INDICATES SEWER EASEMENT "•^^ 0.401 ACRE 200 rUNWJC OT9HUBncktn>StSl«*m mONBRM: SM DkfA Ct 92m SURVFTMC nft1tlS5S4S0a-FX(t19)ISa-'WH (Xi9r\oasiawM.iMC 200 SCALE r = 200' 400 SHEET 1 OF 1 SEWER EASEMENT PLAT - CITY OF CARLSBAD APPLICANT: McUILLIN COMPANIES 2727 HOOVER AVE. NATIONAL CITY. CA 92050 (619) 79>2850 PREPARED BY: JOHN W. HIL. JR. LS. 5669 EXPIRES: 9/30/99 PROJECT: SEWER EASEMENT CM.W.D. 84-501 A.P.N.: 168-050-25 ExmniT "B" Lipman Stevens Marshall & Thene, Inc. 71 VALUATION - PARCEL 3 introduction Compensation for the part to be acquired is normally based on the unit value of the underlying land as considered part of the larger parcel. The larger parcel is defined as the sum of the property found under the same ownership, having contiguity of location and of a similar use. Although there are some situations where the part to be acquired can be valued as a separate parcel, the circumstances do not apply to tiiis project. The larger parcel has been identified through public records available to the appraiser and is assumed to be correct. Altiiough tiie property is designated as a future school site, I have valued tile land under the assumption tiiat it could have been developed with a residential land use if privately held. The value for a school site is usually based on the cost of acquiring land suitable for this type use and is typically residential land. My value analysis is based on comparison of the larger parcel to sales of other vacant acreage parcels with fiiture development potential similar to the subject, absent the school land use designation. The market area searched for comparable land sales included most ofthe northem area of San Diego County. Several comparable sales were found and those most similar in size and physical characteristics were selected for analysis. A summary of the comparable market data items follows, with analysis and conclusions following the data summaries. Lipman Stevens Marshall & Thene, Inc. 72 SALE LOCATION MAP Lioman Stevens Marshall & Thene. Inc 73 iiililifliiiillilfifitiiifiiliiiiiiii 0) > I" m 0) c No. Location/Buyer/Seller COMPARABLE SALE SUMMARY TABLE Size (Acres) Date Price Gro»s/Net $/AcreUnd Zonlnp/GP Comments > W m 1 North of El Camino Real Carlsbad Buyer Carlsbad Unified School Dist. Seller: Holly Springs Ltd. South of N. River Road Oceanside Buyer Valley View Investments Seller Singh Property Mngmt South of PakHnar Airport Road at Hidden Valley Road. Carlsbad Buyer MSP Calitfomia Seller Robert Kelly South side of El Camino Real, at Camino Hills Drive, Carisbad Buyer Shea Homes LP Seller George V\flmpey Inc. South of Calavera Lake, north of El Camino Real, Carisbad Buyer Lyon/Copley Carisbad Assc. Seller Gary Robertson l-Jul-98 $400,000 15 27^an-97 $1,400,000 126.29 6-Mar-95 $2,750,000 56.3 14-Apr-95 $7,350,000 128.1 7-Apr-93 $1,417,000 109.45 $26,667 Zone: L-C GP: RLM $11,086 Zone: A-20 Row 6Ke with no developmant plam Buyer to UM (or «xpansk>n wlo or future high school parcel Raw fltte with no devetopment pianning Roing terrain being fanned. Southern portion of site within flood plain $48,845 Zone: RD-M-Q Raw site with tentative subdvlann map GP: RM approval. Mostly usabte witti ocean views $57,377 Zone: R-A-10 Raw site with approved tentative GP: OS, RLM subdMsion mapfor 1M SFR-s. $12,947 Zone: L-C Raw site purchased for haUtat mitigalion GP: OS, RL RoHng hUs, dirt trtf access LARGER PARCEL VALUATION - PARCEL 3 * Sale Comparable Analysis A brief discussion of each sale comparable follows. m ^ Sale 1 is the recent purchase of a 15-acre parcel by tiie Carlsbad Unified ^ School District. This parcel is part of the subject larger parcel. The sale is considered a current market transaction and is directly comparable to • the balance of the larger parcel. m Sale 2 is tiie purchase of a 126-acre tract located on tiie south side of North River Road and north of Mission Avenue in Oceanside. The • property is used as a farm and the new buyer will also continue the farm ^ use. A portion of the site along the southem boundary is within the ^ floodway and floodplain of tiie San Luis Rey River. This sale is considered inferior in location to tiie subject. In general, property values m are lower in the Oceanside market compared to Carlsbad. An upward il adjustment has been applied for tiie older date of sale. The topography is inferior to the subject due to the unusable floodplain area within the * gross acreage. m ^ Sale 3 is the sale of the Kelly property located south of Palomar Airport ^ Road on Hidden Valley Road. This is a residentially zoned site with an approved tentative subdivision map. The property is near the top of a hill m and has good area views which extend to the ocean. This sale has been IM adjusted upward for inferior market conditions; dovmward for a superior topography and downward for superior land planning in place. Sale 4 is a 128-acre parcel located south of El Camino Real near Camino ^ Hills Drive. This property is across El Camino Real from the subject. ^ The property had rolling terrain and portions were moderately sloping, requiring open space dedication. The sale is inferior due to older market m conditions and superior due to land plarming. The site had tentative map IH approval for 194 residential lots with an average lot size around 7,500 square feet. A downward adjustment has also been applied for a superior location, with this property located closer to existing development and •* infrastmcture. mm ^ Sale 5 is a purchase of a 109-acre parcel located to the north of the subject along the same private road easement that borders the subject. The parcel was purchased in 1993 for offsite mitigation for an adjacent m residential project known as Calavera Hills. The property has roUuig terrain and is on the south side of Lake Calavera. This was a raw. Lipman Stevens Marshall & Thene, Inc. 75 LARGER PARCEL VALUATION - PARCEL 3 unentitled parcel. The sale was adjusted upward for inferior market conditions since 1993 and upward for an inferior location, farther from existing development. An upward adjustment was made for an inferior overall topography and usable area. A comparison grid has been prepared, comparing the sale data with major areas of differences to the subject. A summary of tiiis table follows. IH Lipman Stevens Marshall & Thene, Inc. 76 fl 11 ei 11 11 tl tl II tl tl tl tl tl tl tl II II Element of Comparison Pfoperty/LocaBon Subject 1 2 3 4 5 South of N. River Road South of Palomar AJrport El Camino Real at South of Calavera Lake Carlstiad Oceanskle Road. Hklden Valley Rd Camino Hills Drive North of El Camino Real Carlsbad Carlsbad Carlsbad i^ui-g8 27-Jan-97 e-Mar-dS 14-Apr-95 7-ADr-93 15 Gross 126.29 Gross 56.3 Gross 128.1 Gross 109.45 Gross L-C A-20 RD-M-Q R-A-10 L-C Raw, no mapping AQrk:ultural use Raw with tent. Map Raw with tent. Map Raw $400,000 $1,400,000 $2,750,000 $7,350,000 $ 1,417.000 $26,667 $11,066 $48,845 $57,377 $12,947 Fee 0% Fee 0% Foe 0% Fee 0% Fee 0% Market 0% Market 0% Market 0% Market 0% Market 0% Market 0% Market 0% Market 0% Market 0% Market 0% Current fsk Inferior 15% Inferior 20% Inferior 20% Infertor 25% $26,667 $12,748 $58,615 $68,852 $16,183 Comparat>le 0% Inferkir 30% Compafat)le 0% Supertor -20% Infernr 10% Comparat)le 0% Comparable 0% Similar 0% Comparable 0% Comparatile 0% Comparable 0% Inferior 20% Superior -10% Comparat>le 0% Inferior 10% Comparat>le 0% Comparable 0% Comparable 0% Comparable 0% Comparable 0% Comparable 0% Comparat>le 0% Suparior -33% Supertor -33% Comparable 0% N/A QSk N/A Q2i N/A 0%. N/A Q34 N/A 0% 50% •43% -53% 20% $26,667 $10,123 $33,410 $32,361 $19,420 Sale Date Land Area (Acres) Zoning Land Status Sale Prk;e Atyustment Analysis Sale PrIce/AC Land A«l|ustnMnts: Rights Transferred Financing Conditions of Sale Market CondiUons Adjusted $/AC Land LocattoiWPhysical Ac|ustmMits Location/Vrsibility Size/Shape Topography/Physical Zoning LarKi Planning Other Net Adjustment % Adjusted $/AC Land Parcel 3 Carlsbad 57.63 L-C Raw LARGER PARCEL VALUATION - PARCEL 3 Conclusion of Value Larger Parcel The adjusted market data indicates a range of prices from around $19,000 per acre up to $33,000 per acre. The average adjusted price is $26,196 per acre. Sales 2, 3 and 4 required the most amount of adjustment and are considered less reliable. It appears that the value is bracketed between $25,000 to $33,000 per acre. I have concluded at a value estimate of $30,000 per acre for the subject property. 57.63 acres x $30,000 per acre = $1,728,900 Indicated Value of Larger Parcel $ 1,730,000 m m m Lipman Stevens Marshall & Thene, Inc. 78 JUST COMPENSATION ANALYSIS Valuation of Part to be Acquired The value of the part to be acquired is based on applying the underlying unit value of the land for the area to be acquired. The unit value of $30,000 per acre is converted to an equivalent value of $0.69 per square foot. The percentage of rights acquired varies according to the type of easement and corresponding restrictions on use of the land. The proposed easement is for utility purposes to facilitate the installation and maintenance of an underground 12-inch sewer line and a future reclaimed water line project. The sewer line will cormect a proposed residential subdivision to the north in the Calavera Hills community to an existing sewer main in El Camino Real. The easement will also grant the right of access along the easement for maintenance purposes. The service roadway will follow the existing 60-foot wide road easement. The impact of the proposed utility easement is judged based on the remaining use potential of the property as compared to in the before condition. Within an area unencumbered by any other easements (fee area), the easement will preclude any building improvements. Parking, minor landscaping and other similar uses would be typically considered compatible with an underground utility easement. Land usually has its greatest value when improvement can occur without restriction. In the case of the subject, the proposed easement falls within an area of a pre- existing easement. I have not been provided with a titie report for the subject parcel, however, the easement plat indicates that there is a 60- foot wide road easement that follows the west boundary of the subject and the adjacent parcel. This easement has been in place for a number of years and provides access to parcels located north of the subject. The easement encumbers 30 feet ofthe subject and all of the proposed utility easement lies within this road easement. A road easement is one of the most restrictive types of easement since no permanent stmctures, landscaping or parking would be permitted. Also, the easement allows use and access by others across the subject property. A road easement typically encumbers over 75 percent of the underlying fee rights. The addition of a utility easement to this previously encumbered area has a nominal impact on the underlying remaining fee rights. I estimate the Lipman Stevens Marshall & Thene, Inc. 79 EASEMENT VALUATION - PARCEL 3 value ofthe proposed utility easement for that portion within the existing road easement at 10 percent of the underlying fee rights. Since there are no stmctural improvements within the area proposed for the utility easement, only land value is included in the compensation estimate. A summary of the valuation for the proposed acquisition of the utility easement follows. Ar^im SZSE %Fee Yalufi Easement Encumbered Area: 72,963 $0.69 10% $5,034 Total Acquisition Value of Remainder Parcel - Before Condition Value of Remainder Parcel - After Condition $5,034 The value of the remainder parcel in the before condition is based on deducting the value of the part to be acquired from the value ofthe larger parcel and is a mathematical calculation without any further valuation analysis. It does not consider any potential severance damages or special benefits to the remainder parcel due to the constmction and taking in the manner proposed. This will be evaluated in the next section. Value of the Larger Parcel (Land Only) Value of Part to be Acquired Value of Remainder Parcel (Land Only) $1,728,900 $5.034 $1,723,866 The next step in the analysis is to estimate the fair market value of the remainder parcel in the after condition, after acquisition of the easement and constmction of the project in the manner proposed. This analysis is again made on the basis of land value. I have analyzed the proposed acquisition and find that it will not affect the existing improvements. Therefore, a valuation of land only is required to assess whether there are any damages or special benefits to the remainder parcel. The remainder parcel will continue to contain a total gross area of 57.63 acres. The parcel will now be additionally encumbered with a utility Lipman Stevens Marshall & Thene, Inc. 80 EASEMENT VALUATION - PARCEL 3 m easement allowing constmction of an underground sewer line and at some time in the future a reclaimed water line. The easement will be contained within an existing 60-foot wide road easement along the property boundary. The general utility of the larger parcel has not diminished due to the imposition of the additional easement. The unpact of the easement on the underlying fee land and the adjacent property is considered nominal. The unit value of the remainder parcel is therefore considered to be the same as in the before condition. The overall property value has been reduced by the impact of the new easement acquisition. No severance damages or special benefits are applicable for this easement acquisition. The value of the remainder parcel in the after condition, (after consideration of the easement acquisition and constmction) follows. Value of Remainder Parcel - After Condition: $1,723,866 m «• m Damages and Special Benefits The last step in the analysis of just compensation for the part to be acquired is consideration of any severance damages and/or special benefits which may accme to the remainder parcel. Severance damages are defined as a diminution in the value of the remainder parcel as a result ofthe taking and constmction of the project. Severance damages are compensible to the property owner under state law. I have analyzed the proposed taking and project constmction and find no severance damages applicable to this acquisition. Special benefits are generally defined as an increase in the value of the remainder parcel as a result of the taking and constmction of the proposed project. Special benefits can be used to offset any severance damages created by the project, but can not reduce the amount of compensation for the part acquired. No special benefits exist for this project. Severance Damages: Special Benefits: None None Value Summary - Parcel 3 Value of Larger Parcel - Before Condition: Value of Part to be Acquired Value of Remainder Parcel - Part of Whole: $1,728,900 $5.034 $1,723,866 Lipman Stevens Marshall & Thene, Inc. 81 EASEMENT VALUATION - PARCEL 3 Value of Remainder Parcel - After Condition: $1,723,866 Severance Damages None Special Benefits None m Just Compensation Summary: Value of Part Acquired - Land $5,034 Total Just Compensation (rounded) $5,100 ^ Lipman Stevens Marshall & Thene, Inc. 82 PARCEL 4 - STATE OF CALIFORNIA Lipman Stevens Marshall & Thene, Inc. 83 PLAT MAP - PARCEL 4 NCHO CARLSBAD 3BiLE HOME PARK EE SHEETS 2&3} < O w 1 lis o ffl £l5 r 1*; oc; P >• l!v5 NEW l£, ») OLD f. 1 u ^ 1 2' ft' BLK r Lipman Stevens Marshall & Thene, Inc. 84 SITE ANALYSIS - PARCEL 4 Location The property consists of five contiguous parcels located northeast of El Camino Real in Carlsbad. The east boundary of the parcels forms the m city limit boundary defining the City of Carlsbad and the City of Oceanside. mm " Current Use The property is currently unimproved acreage that is being preserved as ^ open space for environmentally sensitive habitat and endangered species. Apparent Owner State of California •• Wildlife Conservation Board m Sale History Public records disclose the following sales over the past five years: n •i Parcels 168-050-02 and 29: Seller: BA Properties Inc. Buyer: State of Califomia Date: 1/6/95 ^ Doc. Number: 95-0005894 ^ Price: $1,466,000 Cash Parcel 168-050-30: mi Seller: BA Properties Inc. Buyer: State of Califomia - Wildlife Conservation Board * Date: 1/2/96 * Doc. Number: 96-0000388 ^ Price: Not disclosed m Parcels 168-050-31 and 32: Seller: Paul K. Tchang, Trustee U/T/A June 16, 1978 II Buyer: State of Califomia Date: 6/18/97 * Doc. Number: 97-0282696 Price: Not disclosed Lipman Stevens Marshall & Thene, Inc. 85 SITE DESCRIPTION - PARCEL 4 Assessor's Information Assessor Parcel Nos. 168-050-02 168-050-29 168-050-30 168-050-31 168-050-32 The parcels are not assessed due to public entity ovraership. Legal Description The larger parcel is legally described as portions of Lots D and L Miscellaneous Map No. 231, as a subdivision of Rancho Agua Hedionda. A titie report has not been provided for this ownership. Therefore, this legal description is provided for informational purposes only. Zoning The subject is located within the R-A-10 zone for the City of Carlsbad. This is a residential agricultural zone that pemiits one-family dwellings; accessory stmctures to the dwelling; greenhouses, agricultural crops and other related uses. General Plan Site Size/Shape - Larger Parcel The Carlsbad general plan designates the subject as RLM, representing low to medium residential development. This density is described as a range of zero to four dwelling units per gross acre. The total site is an irregularly shaped parcel situated four parcels northeast of El Camino Real. About one-half of the site is nearly rectangular in shape with the westem portion forming angular extension. The total site area of the larger parcel contains 263.12 acres, a composite of which follows. APN 168-050-02 APN 168-050-29 APN 168-050-30 APN 168-050-31 APN 168-050-32 Total Larger Parcel 25.12 acres 57.88 acres 54.63 acres 59.59 acres 65.90 acres 263.12 acres Proposed Acquisition Area Easement Acquisition: 0.544 acre or 23,697 square feet Lipman Stevens Marshall & Thene, Inc. 86 SITE DESCRIPTION - PARCEL 4 The proposed sewer easement is comprised of one continuous strip of land area which extends along the westerly boundary of Assessor Parcel No. 168-050-29. AU of the easement area is within the boundary of an existing 60-foot wide road easement reserved in 1958. Access Topography Ml Access to the property is provided by a dirt road easement which connects to the south to El Camino Real. Although a title report has not been provided, it appears that a 60-foot wide road easement adjacent to the westem boundary of this property and parcels to the south serves as the primary legal access to the site. The subject property has mildly to moderately sloping terrain with most of the property very hilly. The property is in a natural state with trees, grasses and sagebmsh. It appears that this property has large amounts of coastal sagebmsh. The property is largely all contained within the designated Core #3 of tiie City of Carlsbad HMP. Environmental/Soils I am not aware of any environmental contamination of this property. Although no obvious signs of contamination were noted during the property inspection, I am not qualified to detennine the presence of environmental or soil contamination. I have not been provided with an environmental assessment or this property, therefore, this valuation assumes that the site has stable soils and no soil contamination. The property appears to be biologically sensitive with protected habitat and species within the boundaries. The parcels have been designated as open space and comprise the Carlsbad Highlands Conservation Bank administered by the State of Califomia Wildlife Conservation Board and the Department of Fish and Game. Utilities Property consists of non-irrigated acreage. No utilities are available to the site. Ml Coastal Zone Flood Zone The subject property is located outside ofthe coasteil zone boundary. The property is located in Flood Zone C, an area of minimal flooding, per FEMA Map 060284-0775C. Lipman Stevens Marshall & Thene, Inc. 87 SITE DESCRIPTION - PARCEL 4 Earthquake Hazard Mr m m il m Easements and Restrictions Existing Improvements Inspection Date The subject property is not within an identified Alquist-Priolo Earthquake Special Studies Zone. Surrounding Land Uses North: South: East: West: Vacant acreage designated as L-C zoning Vacant acreage Mapped residential land and single-family development Vacant acreage designated as L-C zoning I have not been provided with a copy of Preliminary Titie Report or Titie Policy for this property. This appraisal assumes there are no easements or restrictions that would adversely impact the sale or development of the property other than those noted in this analysis. The plat map for Parcels 2 and 29 indicates that they have been dedicated as open space. Although the remaining parcels do not have this indication, it appears that the intent ofthe owner is to use the larger parcel as a mitigation land bank, preserving the property from any future development. The subject property consists of vacant acreage. No improvements are situated vwthin the proposed easement area. July 17, 1998 ; Contact was made with Right of Way representatives at Caltrans for access to the property and property sale history information. HIGHEST AND BEST USE Highest and Best Use As Vacant The "highest and best use" is a key element in valuing the Subject Property. Highest and best use is an estimate of that use which provides the highest net retum to the land and fits within the legal and physical constraints of the property. The use is not a fact to be found but based upon a knowledgeable opinion. Further, it should consider the special marketable characteristics of the subject and operate within the limits of pmdent and justifiable investment. For valuation purposes, the highest and best use of the subject is found for the site, as if vacant. Lipman Stevens Marshall & Thene, Inc. 88 SITE DESCRIPTION - PARCEL 4 m m mi m mt m M m The property consists of 263 acres within five contiguous parcels. The parcels were assembled from several sellers over the past couple years. The property is being used as a sensitive habitat and species land conservation bank. The zoning of the property is R-A-10, a low density residential land use. The general plan designation is also for low density residential use. Two of the parcels have been dedicated for open space. It appears that all or most of the larger parcel is contained within the Carlsbad HMP. Based on these land use restrictions and the hilly terrain, the highest and best use for the property is for open space and mitigation land, as is currently being used. Lipman Stevens Marshall & Thene, Inc. 89 TOPOGRAPHIC MAP m m Printed from TOFO! ©1997 Wildflowgr ProdTictions (ww\y.topo.com) m Lipman Stevens Marshall & Thene, Inc. 90 SUBJECT PROPERTY PHOTOGRAPHS View looking east toward subject larger parcel View looking south along westem property boundary and area of proposed easement Lipman Stevens Marshall & Thene, Inc. 91 PROPOSED ACQUISITION PLAT m m 0, 5; > 5 I O s I to I P.O.B. LOT "D" CO CO / APN 168-040-30 WEST LINE OF FILE NO. 1995-0005894, O.R. LOT "D' Lor "B" PORTION LOT APN 168-050- APN 168-050-02 NORTHWEST CORNER OF THE LAND DESCRIBED IN DEED TO THE STATE OF CALIFORNIA RECORDED JANUARY 6. 1995. AS RLE NO. 1995-0005894 OF OFRCIAL RECORDS. N ons'oi'w 298.92'^ 7 OF S MAP NO. 14813 Fi OF S MAP NO. 6616 APN 168-050-29 APN 168-050-17 EXISVNG 60' WIDE EASEMENT RESERVED FOR ROAD PURPOSES RECORDED 4/01/58. RLE NO. 51674. BK. 7016. PG. 536. O.R. APN 168-050-25 FiANCHO AGUA HBDJONDA MAP NO. 323 HUNSAKER & ASSOCIATES iAH DItCa IHC JUtVEVNC PHttttSSMSOO • RttlWSa-WU oo9i\oast(MaiowG LEGEND: 200 SCALE r = 200' SHEET 1 OF 1 SEHER EASEMENT PLAT - CITY OF CARLSBAD APPLICANT: UcUILLlN COMPANIES 2727 HOOVER AVE. NATIONAL CITY, CA 92050 (619) 793-2850 PREPARED 8Y: JOHN W. HH.L, JR. LS. 5669 EXPIRES; 9/30/99 PROJECT: SEWER EASEMENT CM.W.D. 84-501 A.P.N.: 168-050-29 EXHiBrr "B" Lipman Stevens Marshall & Thene, Inc. 92 VALUATION - PARCEL 4 Introduction Compensation for the part to be acquired is normally based on the unit value of the underlying land as considered part of the larger parcel. The larger parcel is defmed as the sum of the property found under the same ownership, having contiguity of location and of a similar use. The larger parcel has been identified through public records available to the appraiser and is assumed to be correct. A sales search was made for land sales of property comparable to the subject. The market area searched included most of San Diego County due to the size of the larger parcel and the special land use restrictions as open space. Several comparable sales were foimd and those most similar in size and physical characteristics were selected for analysis. A summary of the comparable market data items follows, with analysis and conclusions following the data summaries. Mi Lipman Stevens Marshall & Thene, Inc. 93 SALE LOCATION MAP Lioman Stevens Marshall & Thene. Inc. 94 I II II ftl ftl ftl Bl il II II II ftl ii ftl il ii ii li II s p a a B 3 sr B COMPARABLE SALE SUMMARY TABLE No. Locatlon/Buyer/Seller Date Price Size (Acres) Gross/Net $/Acro Land 1 El Camino Real and Palomar Airport Road, Carlsbad Buyer. Lennar Bressi Ranch Seller Mary Bressi Trust West side of El Camino Real south of La Costa Avenue, Carlsbad Buyer Continuing Life Communities Seller Carlsbad Partners Kelly Drive and Ei Camino Real Carlsbad Buyer Hillman Properties Seller Kelly Family Investment South of Calavera l-ake, north of El Camino Reai, Carisbad Buyer Lyon/Copley Carlsbad Assc. Seller Gary Robertson Black Mountain Road, east of Rancho Santa Fe Farms Road, San Diego Buyer Pardee Construction Seller ACQ Trust 5-Mar-97 $8,531,684 30-Sep-97 $4,750,000 558.20 $15,284 Zonlng/QP Comments 27-Sep-96 $4,000,000 281.24 100 432.22 133 7-Apr-93 $1,417,000 109.45 7^an-g7 $3,934,000 294.26 $16,889 $9,255 $12,947 Zone: L-C GP: UA OS. RLM Zone: P-C GP: OS, RMH Zone: P-C GP: OS. RM Zone: L-C GP: OS, RL $13,369 Zone: A-1-10 Raw sHt with no dav«(opnwnt plans Curranlly usad fer fwmlno. Raw sMa wtth no davalopmant plans Nat usabia acraaga asUmatad at lOOf/- Prioa par natacra Is $47.50(VAc. Floodplain from BaliquHos Lagoon wtthin parcat. Raw sHi wtth no davalopmant ptannlng Nat uaabta acraaga astimatad at 133 ac. Floodplain of Agua Hadlonda Lagoon makas up most o< tha opmn space dedication. Raw sHa purchasad for habitat mltigalkin Rolling hIKs, dirt ball i €0 > 1" m 0) > DO I" m Undsvalopad land wtth no nupping Portions of lha propar^ ara wtthin tha MSCP. A floodplah also croasaa through lhaparcal. LARGER PARCEL VALUATION - PARCEL 4 Sale Comparable Analysis A brief discussion of each sale comparable follows. Sale 1 is the purchase of a 558-acre parcel located on the south side of Palomar Airport Road, east of El Camino Real in Carlsbad. This large site was purchased raw without mapping entitlements. The property has underlying general plan land use designations for low to medium residential development, open space and an unplarmed area. The property is currently used for farming. The buyer also purchased an out- parcel owned by Mr. Addis in the center of this large property. The parcel is improved with a single family residence is within a 22-acre site. The purchase price for that parcel was $2,800,000. The combined average price for the total 580-acre assemblage is $19,860 per acre. This sale has been adjusted downward for a superior location, being adjacent to two major arterials. The topography for the sale is also considered superior, with more developable gently rolling terrain. Sale 2 is a 281-acre parcel located on the west side of El Camino Real, south of La Costa Avenue in Carlsbad. The property was purchased m a raw condition without mapping entitiements. There is a large portion of the property located in the Encinitas Creek floodplain, which is unusable. The usable portion is located near the southem and westem property boundary. This sale required an upward adjustment for an inferior date of sale. A downward adjustment was applied for a superior location near La Costa. Sale 3 is a large ownership transfer located southwest of the subject on the south side of El Camino Real between Kelly Drive and Hidden Valley Road. The property was sold subject to prior encumbrances and agreements for dedication of over 300 acres of open space within the Agua Hedionda Lagoon floodplain. The net usable area is around 133 acres. The property sold in a raw condition, without mapping entitlements. An upward adjustment is needed for the older date of sale. An upward adjustment was also applied for distressed sale circumstances because of financial difficulty by the seller. Sale 4 is a purchase of a 109-acre parcel located to the north of the subject. The parcel was purchased in 1993 for offsite mitigation for an adjacent residential project known as Calavera Hills. The property has rolling terrain and is on the south side of Lake Calavera. This was a raw, unentitled parcel. The sale was adjusted upward for inferior market Lipman Stevens Marshall & Thene, Inc. 96 LARGER PARCEL VALUATION - PARCEL 4 Ml conditions since 1993. Sale 5 is the purchase of a large acreage tract located on the south side of Black Mountain Road in the Carmel Valley area of San Diego. The parcel was purchased by Pardee Construction and the mtended use of the property was not disclosed. Over one-half of the property is within the MSCP and a floodplain also crosses through this property. The sale is inferior due to an older date of sale, but otherwise no adjustments were considered necessary. In addition to the comparable sale data, I have also considered the 1995 purchase of a portion of the subject property from Bank of America. The property was purchased for mitigation land and was based on an appraisal of the property at the time of sale. The price was reported by Caltrans as being a market deal. There were some Mello-Roos liens which were waived by the City upon closing ofthe deal. A comparison grid has been prepared, comparing the sale data with major areas of differences to the subject. A summary of this table follows. Lipman Stevens Marshall & Thene, Inc. 97 [| II 11 II li ftl il ftl ftl fti ftl ii il it II II II li II Element of Comparison Subject 1 2 3 4 5 Property/Location zl Camino Rea El Camino Real & EI Camino Real & El Camino Real & South of Calavera Lalte Black Mountain Road Property/Location Parcel 4 Palomar Airport Road La Costa Avenue KellyDrive North of El Camino Real id Rnctxo Santa Fe Farrr Carlsbad Carlsbad Carisbad Caristwd Carist>ad San Diego Sale Date 5-Mar-97 30-Sep-97 27-Sep-96 7-Apr-93 7-Jan-97 Land Area (Acres) 263.12 558.2 Gross 281.24 Gross 432.22 Gross 109.45 Gross 294.26 Gross Zoning R-A-10 L-C P-C P-C L-C A-1 10 Land Status Raw, open Raw. no mapping Raw, no mapping Raw, no mapping Undeveloped Undeveloped space Sale Price $8,531,684 $4,750,000 $4,000,000 $1,417,000 $3,934,000 Adjustment Analysis Sale Price/AG Land $15,284 $16,889 $9,255 $12,947 $13,369 Adjustments: Rights Transferred Fee 0% Fee 0% Fee 0% Fee 0% Fee 0% Financing Market 0% Mariiet 0% Mehtat 0% Mariiet 0% Maritet 0% Conditions of Sale Distressed 10% Maritet 0% Distressed 10% Maritet 0% Maritet 0% Market Conditions Inferior 12% Inferior g% inferior 20% Inferior 25% Inferior 12% Adjusted $/AC Land $18,647 $16,410 $12,031 $16,183 $14,973 LoeatkNi/Physlcal AilJiistinMts: Location/Vlsibiljty Superior -10% Superior -15% Comparable 0% Comparable 0% Comparable 0% Size/Shape Comparable 0% Comparable 0% Comparable 0% Comparable 0% Comparable 0% Topography/Physical Suparior -10% Comparable 0% Comparable 0% Comparable 0% Comparable 0% Zoning Comparable 0% Comparable 0% Comparable 0% Comparable 0% Comparable 0% Land Planning Comparable 0% Comparable 0% Comparable 0% Comparable 0% Comparable 0% Other N/A N/A N/A N/A N/A Nat Adjustment % -20% -15% 0% 0% 0% Adjusted VAC Land $14,917 $15,648 $12,031 $16,183 $14,973 1 LARGER PARCEL VALUATION - PARCEL 4 Conclusion of Value Larger Parcel The adjusted market data indicates a range of prices from around ^ $12,000 to $16,000 per acre. The average adjusted price is $14,750 per ^ acre. The 1995 purchase of a portion of the subject property was at $17,663 per acre. Although this is slightiy above the adjusted range, it is ^ considered a valid market indication. I have concluded at a value estimate of $18,000 per acre for the subject property. 263.12 acres x $18,000 per acre = $4,736,160 Indicated Value of Larger Parcel $4,740,000 Lipman Stevens Marshall & Thene, Inc. 99 JUST COMPENSATION ANALYSIS mi Valuation of Part to be Acquired The value of the part to be acquired is based on applying the underlying unit value of the land for tiie area to be acquired. The unit value of $18,000 per acre is converted to an equivalent value of $0.41 per square foot. The percentage of rights acquired varies according to the type of easement and corresponding restrictions on use of the land. The proposed easement is for utility purposes to facilitate the installation and maintenance of an underground 12-inch sewer line and a future reclaimed water line project. The sewer line will connect a proposed residential subdivision to the north in the Calavera Hills community to an existing sewer main in El Camino Real. The easement will also grant the right of access along the easement for maintenance purposes. The service roadway will follow the existing 60-foot wide road easement. The impact of tiie proposed utility easement is judged based on the remaining use potential of the property as compared to in the before m condition. Within an area unencumbered by any other easements (fee m area), the easement will preclude any building improvements. Parking, minor landscaping and other similar uses would be typically considered compatible with an imderground utility easement. Land usually has its • greatest value when improvement can occur without restriction. mi ^ In the case of a portion of the subject, the proposed easement falls within an area of a pre-existing easement. I have not been provided with a titie w report for the subject parcel, however, the easement plat indicates that !• there is a 60-foot wide road easement that follows the westem boundary of the subject and the adjacent parcel to the west. This easement has been in place for a number of years and provides access to parcels located north and south of the subject. The easement encumbers 30 feet of the subject and all of the proposed utility easement lies within this road easement. A road easement is one of the most restrictive types of easement since no permanent structures, landscaping or parking would be permitted. Also, the easement allows use and access by others across the subject property. A road easement typically encumbers over 75 percent of the underlying fee rights. The addition of a utility easement to Lipman Stevens Marshall & Thene, Inc. 100 m$ m EASEMENT VALUATION - PARCEL 4 ii this previously encumbered area has a nominal impact on the underlying remaming fee rights. I estimate the value of the proposed utility easement for that portion within the existing road easement at 10 percent of the underlying fee rights. Since there are no structural improvements within the area proposed for the utility easement, only land value is included in the compensation estimate. Mi A summary of the valuation for the proposed acquisition of the utility easement follows. Easement Encumbered Area: Area{SF $/SF % Fee Value 23,697 $0.41 10% $972 Total Acquisition $972 Value of Remainder Parcel - Before Condition m m The value of the remainder parcel in the before condition is based on deducting the value ofthe part to be acquired from the value of the larger parcel and is a mathematical calculation without any further valuation analysis. It does not consider any potential severance damages or special benefits to the remainder parcel due to the construction and taking in the manner proposed. This will be evaluated in the next section. Value of the Larger Parcel (Land Only) Value of Part to be Acquired Value of Remainder Parcel (Land Only) $4,736,160 $972 $4,735,188 Value of Remainder Parcel - After Condition The next step in the analysis is to estimate the fair market value of the remainder parcel in the after condition, after acquisition ofthe easement and construction of the project in the manner proposed. This analysis is again made on the basis of land value. The remainder parcel will continue to contain a total gross area of 263 acres. The parcel will now be additionally encumbered with a utility Lipman Stevens Marshall & Thene, Inc. 101 EASEMENT VALUATION - PARCEL 4 easement allowing construction of an undergroimd sewer line and at some time in the future a reclaimed water line. The easement will be mostly contained within an existing 30-foot wdde road easement along the property boundary. The general utility of the larger parcel has not diminished due to the imposition of the additional easement. The impact of the easement on the underlying fee land and the adjacent property is considered nominal. The unit value of the remainder parcel is therefore considered to be the same as in the before condition. The overall property value has been reduced by the impact of the new easement acquisition. No severance damages or special benefits are applicable for this easement acquisition. The value of the remainder parcel in the after condition, (after consideration of the easement acquisition and construction) follows. Value of Remainder Parcel - After Condition: $4,735,188 Damages and Special Benefits The last step in the analysis of just compensation for the part to be acquired is consideration of any severance damages and/or special benefits which may accrue to the remainder parcel. Severance damages are defmed as a diminution in the value of the remainder parcel as a resuh ofthe taking and construction of the project. Severance damages are compensible to the property owner under state law. I have analyzed the proposed taking and project construction and find no severance damages applicable to this acquisition. Special benefits are generally defined as an increase in the value of the remainder parcel as a result of the taking and construction ofthe proposed project. Special benefits can be used to offset any severance damages created by the project, but can not reduce the amount of compensation for the part acquired. No special benefits exist for this project. Severance Damages: Special Benefits: None None Value Summary- Parcel 4 Value of Larger Parcel - Before Condition: Value of Part to be Acquired Value of Remainder Parcel - Part of Whole: $4,736,160 $972 $4,735,188 Lipman Stevens Marshall & Thene, Inc. 102 EASEMENT VALUATION - PARCEL 4 Value of Remainder Parcel - After Condition: $4,735,188 Severance Damages None Special Benefits None Just Compensation Summary: Value of Part Acquired - Land $972 Total Just Compensation (rounded) $1,000 Lipman Stevens Marshall & Thene, Inc. 103 PARCEL 5 - ROBERTSON, ET AL M Mil Lipman Stevens Marshall & Thene, Inc. 104 PLAT MAP - PARCEL 5 VILLAG? DR. BIITT 6 • . • ; Lipman Stevens Marshall & Thene, Inc. 105 Location Current Use Apparent Owner Sale History SITE ANALYSIS - PARCEL 5 The property is located four parcels northeast of Ei Camino Real, south of Calavera Lake in Carlsbad. The property is currently unimproved acreage. Brian K. Robertson and Gary W. Robertson The public records indicate that the property has been under this ownership since 1976. I am not aware of any pending sale or listing of this property. Assessor's Information Assessor Parcel No. 168-040-30 Assessed Values (1997/98): Land $45,458 Improvements | 0 Total $45,458 Tax Rate Area: 09-162 Tax Rate: 1.054% Real Estate Taxes: $623.80 Legal Description Zoning m General Plan Site Size/Shape - Larger Parcel The parcel is legally described as a portion of Lot D of Miscellaneous Map No. 231, as a subdivision of Rancho Agua Hedionda in the City of Carlsbad, County of San Diego and State of Califomia. The subject is located within the L-C zone for the City of Carlsbad. This is a limited control zone that provides an interim zoning designation for areas where plarming for fiiture land uses has not been completed or plans for development have not been formalized. The Carlsbad general plan designates the subject as RLM, representing low to medium residential development. This density is described as a range of zero to four dwelling units per gross acre. The total site is an irregularly shaped parcel situated four parcels northeast of El Camino Real. The current Assessor plat map indicates that the total site contains 6.69 acres. Lipman Stevens Marshall & Thene, Inc. 106 SITE DESCRIPTION - PARCEL 5 Proposed Acquisition Area Topography mt mn m m mt m Access Environmental/Soils Biological Influence Utilities Coastal Zone Flood Zone Easement Acquisition: 0.069 acre or 3,006 square feet The proposed sewer easement is comprised of one continuous triangular piece of land area located at the northeast comer of the property. Nearly all of the easement area is within the existing boundaries of a 60 foot- wide road easement that was granted in 1958. The subject property has mildly to moderately sloping terrain. The property is in its native condition and includes native trees, shrubs, brush and grass. The Calavera Lake Creek crosses through the property in a north/south direction, flowing southward. Access to this property is from a private road easement, 60 feet in width located on the properties eastem boundary. The road easement is a dirt trail along this portion of the property as well as the ownership to the south. The road is paved near the terminus with El Camino Real approximately one mile to the south. I am not aware of any environmental contamination of this property. Although no obvious signs of contammation were noted during the property inspection, I am not qualified to determine the presence of environmental or soil contamination. I have not been provided with an environmental assessment or this property, therefore, this valuation assumes that the site has stable soils and no soil contamination. The property is adjacent to an open space designated land bank for biologically sensitive habitat and species. The subject may also fall within Core #3 of the Carlsbad HMP. A biological study will be needed to assess the development potential of this property. The subject consists of non-irrigated acreage, service the subject site. No utilities currently The subject property is located outside of the coastal zone boundary. The property is located in Flood Zone C, an area of minimal flooding, per FEMA Map 060284-0775C. Lipman Stevens Marshall & Thene, Inc. 107 SITE DESCRIPTION - PARCEL 5 m Earthquake Hazard Surrounding Land Uses Easements and Restrictions Existing Improvements Inspection Date The subject property is not within an identified Alquist-Priolo Earthquake Special Studies Zone. North: Vacant acreage designated as L-C and P-C zoning South: Vacant acreage designated as L-C zoning East: Vacant acreage designated as Open Space West: Vacant acreage designated as P-C zoning 1 have not been provided v^dth a copy of Preliminary Title Report or Titie Policy for this property. This appraisal assumes there are no easements or restrictions which would adversely impact the sale or development of the property other than those noted in this report. An access easement encumbers the eastem 30 feet of the subject property. The subject property consists of vacant acreage. No improvements are situated within the proposed easement area. July 17, 1998; The property owner's representative, Mr. James Hicks was contacted regarding this project. Permission was granted to inspect the property. HIGHEST AND BEST USE Highest and Best Use As Vacant The "highest and best use" is a key element in valuing the Subject Property. Highest and best use is an estimate of that use which provides the highest net retum to the land and fits within the legal and physical constraints of the property. The use is not a fact to be found but based upon a knowledgeable opmion. Further, it should consider the special marketable characteristics of the subject and operate within the limits of pmdent and justifiable investment. For valuation purposes, the highest and best use of the subject is found for the site, as if vacant. The subject is a 6.69 acre parcel of undeveloped acreage located in the middle of several large ovraerships. The property is zoned L-C, a limited control holding zone. The underlying general plan designation is for low to medium density residential use. The property is adjacent to a sensitive habitat and species conservation bank and is at the base of a moderate to Lipman Stevens Marshall & Thene, Inc. IOS SITE DESCRIPTION - PARCEL 5 steeply sloping hillside. Development of this property is not likely in the near future, altiiough the adjacent ownership to tiie northwest is in land planning at tiiis time. The most likely highest and best use for this property, depending on tiie amount of sensitive habitat and/or species contained withm the property, is holding for future development or inclusion into the adjacent open space land bank. A biological and environmental assessment will be required to detemiine the developable area for this property. If this property is developed, it will be a low to medium density residential use and likely will be joined with an adjacent ownership and incorporated into a larger subdivision plan. m m Lipman Stevens Marshall & Thene, Inc. 109 TOPOGRAPHIC MAP ^^^^^^ 100^^^^^gg______gQ^^^^^^K Printed from TOPQI 01997 Wfldfbwer Productions (www.topo.cQm) Lipman Stevens Marshall & Thene, Inc. 110 SUBJECT PROPERTY PHOTOGRAPHS View looking westt toward subject larger parcel View looking north along eastem property boundary and area of proposed easement Lipman Stevens Marshall & Thene, Inc. Ill PROPOSED ACQUISITION PLAT '4 CQ > LOT "D" APN 168-040-29 P.O.B. NORTH UNE- LOT "D" APN 168-040-30 PORT JON Lor "L" ''iANCHO AGUA HBDJONDA MAP NO. 823 APN 168-050-02 ^^F'JP^- ^^^^ ' °^ DESCRIBE IN DEED TO BRIAN K. ROBERTSON AND GARY W. ROBERTSON RECORDED DECEMBER 22 1976 AS FILE NO. 76-430366 OF OFRCIAL RECORDS. tlp^/V Ori5'01-W 138.17' 1^ Fi OF S MAP NO. 14813 Fi OF S MAP NO. 6616 EXISTING 60' WIDE EASEMENT- , RESERVED FOR ROAD PURPOSES \ ' • / RECORDED 4/01/58, RLE NO. \ \ ^ / 51674. BK. 7016, PG. 536. O.R \ \ ^ \\\ ^\\ / LEGEND: \^ ' / p_, \ \ \ / \yyZi INDICATES SEWER EASEMENT ^ 0.063 ACRE Lor "D" APN 168-050-29 HUNSAKER & ASSOCIATES lAM DlICa INC MMBUNC SMOefAanill oiai\oa3jaio2.!mc 200 SEWER EASEMENT PLAT - CITY OF CARLSBAD j APPLICANT: 1 McUILLIN CCWPANIES 1 3727 HOOVER AVE. 1 NATIONAL CITY, CA 920SO 1 (619) 793-2B50 PREPARED BY: ^9t^ ^ //.fl C'lf-70 PROJECT: SEWER EASEMENT CM.W.D. 84-501 A.P.N.: 168-040-30 j APPLICANT: 1 McUILLIN CCWPANIES 1 3727 HOOVER AVE. 1 NATIONAL CITY, CA 920SO 1 (619) 793-2B50 JOHN W. HILL. JR. LS. S6SS EXPIRES: 9/30/99 PROJECT: SEWER EASEMENT CM.W.D. 84-501 EXHIBIT "R" Lipman Stevens Marshall & Thene, Inc. 112 LARGER PARCEL VALUATION - PARCEL 5 mt m Introduction Compensation for the part to be acquired is normally based on tiie unit value of the underlying land as considered part of the larger parcel. The larger parcel has been identified tiirough public records available to the appraiser and is assumed to be correct. A sales search was made for land sales of property comparable to the subject. The market area searched included primarily the Carlsbad and Oceanside areas of northem area of San Diego County. Several comparable sales were found and those most sunilar in size and physical characteristics were selected for analysis. A summary of the comparable market data items follows, with analysis and conclusions following the data summaries. Lipman Stevens Marshall & Thene, Inc. 113 SALE LOCATION MAP Lioman Stevens Marshall & Thene. Inc. 114 Illllllllllllfllllilillll llllllllllll COMPARABLE SALE SUMMARY TABLE No. Location/BuyeriSeller Date Price Size (Acres) Gross/Net $/Acre Land Zonlnp/GP Comnwnts 1 North of El Camino Real Carlsbad Buyer Carlsbad Unified School Dist. Seller Holly Springs Ltd. 2 South of Palomar Airport Road at Hidden Valley Road, Carlsbad Buyer MSP Calllfomia Seller Robert Kelly 3 Black Rail Road and Poinsettia Lane, Carlsbad Buyer N.G.& D.L Gallagher Tmst Seller Eldorado Bank 4 South of Calavera Lake, north of El Camino Real, Carlsbad Buyer Lyon/Copley Carlsbad Assc. Seller Gary Robertson 1-Jul-98 $400,000 6-Mar-9S $2,750,000 8-Jan-98 $350,000 7-Apr-93 $1,417,000 15 56.3 5.2 109.45 $26,667 Zone: L-C Raw sita with no development plans GP: RLM Buyer to use for expansion site of future high school parcel $48,845 Zone: RD-M-Q Raw site with tentative tubdKMon map GP: RM approval. Mostly usable wO\ ocean views $67,308 Zone: L-C GP; RLM Raw site wtth no development plans Generally level topography $12,947 Zone: L-C Raw site purchased for hatiltatmitiaation GP: OS, RL Roing hilB.dhttral access > n m CO 3 > CD n m LARGER PARCEL VALUATION - PARCEL 5 Sale Comparable Analysis A brief discussion of each sale comparable follows. Sale 1 is tiie recent purchase of a 15-acre parcel by tiie Carlsbad Unified School District. This parcel is just east of the subject larger parcel. The sale is considered a current market transaction and is directiy comparable to the subject. Sale 2 is the sale of the Kelly property located south of Palomar Airport Road on Hidden Valley Road. This is a residentially zoned site with an approved tentative subdivision map. The property is near the top of a hill and has good area views that extend to the ocean. This sale has been adjusted upward for inferior market conditions; downward for a superior topography and downward for superior land planning in place. An upward adjustment was applied for the larger parcel size of this sale compared to the subject. Sale 3 is a 5.2-acre parcel located on Black Rail Road and Poinsettia Lane in Carlsbad. This parcel has generally level terrain and is improved with some greenhouses. The access to the property is by dirt trail and has not yet been improved m this area. Surrounding development is now occurring, making the site more likely to have development potential in the near future. This sale is superior to the subject due to a better location closer to existing development and also due to a superior topography. Sale 4 is a purchase of a 109-acre parcel located to the north of the subject along the same private road easement that borders the subject. The parcel was purchased in 1993 for offsite mitigation for an adjacent residential project known as Calavera Hills. The property has rolling terrain and is on the south side of Lake Calavera. This was a raw, unentitled parcel. The sale was adjusted upward for inferior market conditions since 1993 and upward for larger parcel size. A comparison grid has been prepared, comparing the sale data with major areas of differences to the subject. A summary of this table follows. Lipman Stevens Marshall & Thene, Inc. 116 llflll iliiiiiifii I ittitiiiiiiiiiiiiiii Element of Comparison Subject 1 2 3 4 Property/Location Et Camino Real North of El Camino Real South of Patomar Airport Black Rait Road South of Calavera Lake Parcels Carisbad Road, Hidden Valley Rd and Poinsettia Lane North of EI Camino Real Carisbad Carlsbad Carisbad Carisbad Sale Date 1-Jut-98 6-Mar-95 8-Jan-98 7-Apr-93 Land Area (Acres) 6.69 15 Gross 56.3 Gross 5.2 Gross 109.45 Gross Zoning L-C L-C RD-M-Q L-C L-C Land Status Raw Raw, no mapping Raw with tent. Map Raw Raw Sale Price $400,000 $2,750,000 $ 350,000 $ 1,417,000 Adjustment Analysis Sate Price/AC Land $26,667 $48,845 $67,308 $12,947 Adjustments: Rights Transfenred Fee 0% Fee 0% Fee 0% Fee 0% Financing Maricet 0% Mari(et 0% Maritet 0% Maritet 0% Conditions of Sate Market 0% Maritet 0% Martcet 0% Maritet 0% Market Conditions Current Inferior 20% Current Q% Inferior 25% Adjusted $/AC Land $26,667 $58,615 $67,308 $16,183 Location/Physical Adjustmanta: LocationA/isibitity Comparable 0% Comparable 0% Superior -15% Comparable 0% Size/Shape Comparable 0% Inferior 25% Comparable 0% Inferior 50% Topography/Physical Comparable 0% Superior -10% Superior -20% Comparable 0% Zoning Comparable 0% Comparable 0% Comparable 0% Comparable 0% Land Planning Comparable 0% SuperkH* -33% ComparaUe 0% Comparable 0% Other N/A N/A 0% N/A 0% N/A 0% Net Adjustment % 0% -18% -35% 50% Adjusted $/AC Land $26,667 $48,064 $43,750 $24,275 LARGER PARCEL VALUATION - PARCEL 5 Conclusion of Value Larger Parcel The adjusted market data mdicates a range of prices firom around $24,000 per acre up to $48,000 per acre. The average adjusted price is $35,689 per acre. Sales 1 and 3 are the most similar to the subject due to small sizes and have been given the most weight. I have concluded at a value estunate of $40,000 per acre for the subject property. 6.69 acres x $40,000 per acre = $267,600 Indicated Value of Larger Parcel $270,000 Lipman Stevens Marshall & Thene, Inc. 118 JUST COMPENSATION ANALYSIS Valuation of Part to be Acquired The value of tiie part to be acquired is based on applying the underlying unit value of the land for the area to be acquired. The unit value of $40,000 per acre is converted to an equivalent value of $0.92 per square foot. The percentage of rights acquired varies according to the type of easement and correspondmg restrictions on use of tiie land. The proposed easement is for utility purposes to facilitate tiie mstallation and maintenance of an underground 12-inch sewer line and a future reclaimed water line project. The sewer line will connect a proposed residential subdivision to tiie nortii in the Calavera Hills community to an existing sewer main in El Camino Real. The easement will also grant the right of access along the easement for maintenance purposes. The service roadway will follow the existing 60-foot wide road easement. The impact of the proposed utility easement is judged based on the remaining use potential of tiie property as compared to in the before condition. Within an area unencumbered by any other easements (fee area), the easement will preclude any building improvements. Parking, minor landscaping and other similar uses would be typically considered compatible with an underground utility easement. Land usually has its greatest value when improvement can occur wdthout restriction. It is my opinion that an underground utility easement acquires approximately 50 percent ofthe total fee rights to a previously unencumbered parcel. In the case of a portion of the subject, the proposed easement falls within an area of a pre-existing easement. I have not been provided with a titie report for the subject parcel, however, tiie easement plat indicates tiiat there is a 60-foot wide road easement that follows tiie eastem boundary of the subject and the adjacent parcel. This easement has been in place for a number of years and provides access to parcels located north and soutii of tiie subject. The easement encumbers tiie easterly 30 feet ofthe subject and most of the proposed utility easement lies witiiin this road easement. A road easement is one of the most restrictive types of easement since no permanent stmctures, landscaping or parking would be permitted. Also, tiie easement allows use and access by otiiers across Lipman Stevens Marshall & Thene, Inc. 119 EASEMENT VALUATION - PARCEL 5 the subject property. A road easement typically encumbers over 75 percent of tiie underiying fee rights. The addition of a utility easement to this previously encumbered area has a nominal impact on the underiying remaming fee rights. I estimate tiie value of tiie proposed utility easement for tiiat portion within the existmg road easement at 10 percent of the underlying fee rights. Since there are no stmctural improvements witiiin the area proposed for the utility easement, only land value is included in the compensation estimate. A summary of the valuation for the proposed acquisition of the utility easement follows. mm Area fSF^ $/SF % F¥¥ V^kf Easement mm Fee Area: 280 $0.92 50% $129 Encumbered Area: 2,726 $0.92 10% $251 mm Total Acquisition 3,006 $380 Value of Remainder Parcel - Before Condition The value of the remainder parcel in the before condition is based on deducting the value of the part to be acquired from the value ofthe larger parcel and is a mathematical calculation without any fiirther valuation analysis. It does not consider any potential severance damages or special benefits to the remainder parcel due to the constmction and taking in the manner proposed. This wdll be evaluated in the next section. Value of the Larger Parcel (Land Only) Value of Part to be Acquired Value of Remainder Parcel (Land Only) $267,600 $380 $267,220 Value of Remainder Parcel - After Condition The next step in the analysis is to estimate the fair market value of the remainder parcel in the after condition, after acquisition ofthe easement and constmction of tiie project in the manner proposed. This analysis is again made on the basis of land value. The remainder parcel will continue to contain a total gross area of 6.69 Lipman Stevens Marshall & Thene, Inc. 120 EASEMENT VALUATION - PARCEL 5 acres. The parcel will now be additionally encumbered with a utility easement allowing constmction of an undergroimd sewer line and at some time in the future a reclaimed water line. The easement will be mostiy contained within an existing 60-foot wide road easement along the property boundary. The general utility of the larger parcel has not diminished due to the imposition of the additional easement. The impact of the easement on the underiying fee land and the adjacent property is considered nominal. The unit value of the remainder parcel is therefore considered to be the same as in the before condition. The overall property value has been reduced by the impact of the new easement acquisition. No severance damages or special benefits are applicable for this easement acquisition. The value of the remainder parcel in the after condition, (after consideration of the easement acquisition and constmction) follows. Value of Remainder Parcel - After Condition: $267,220 Damages and Special Benefits The last step in the analysis of just compensation for tiie part to be acquired is consideration of any severance damages and/or special benefits which may accme to the remainder parcel. Severance damages are defined as a diminution in the value of the remainder parcel as a result ofthe taking and constmction of the project Severance damages are compensible to the property owner under state law. I have analyzed the proposed taking and project constmction and find no severance damages applicable to this acquisition. Special benefits are generally defined as an increase in the value of the remainder parcel as a result of tiie taking and constmction of the proposed project. Special benefits can be used to offset any severance damages created by the project, but can not reduce the amount of compensation for the part acquu-ed. No special benefits exist for this project. Severance Damages: Special Benefits: None None Value Summary - Parcel 5 Value of Larger Parcel - Before Condition: Value of Part to be Acquired Value of Remainder Parcel - Part of Whole: $267,600 $380 $267,220 Lipman Stevens Marshall & Thene, Inc. 121 EASEMENT VALUATION - PARCEL 5 Value of Remainder Parcel - After Condition: $267,220 Severance Damages None Special Benefits None Just Compensation Summary: Value of Part Acquired - Land $380 Total Just Compensation (rounded) $500 Lipman Stevens Marshall & Thene, Inc. 122 ADDENDUM ADDENDUM NO. 1 EASEMENT AREA CALCULATION MAPS --1S-1998 09:24 HUNSl^ER SD 6195581414 P.02/03 \ HUNSAKER SD mt m 6195581414 P.03/03 ADDENDUM NO. 2 APPRAISER QUALIFICATIONS QUALIFICATIONS OF GARY L. RASMUSON, MAI Expertise: Mr. Rasmuson has been actively appraising real estate since 1977 as an independent fee appraiser. Specialties include the valuation for litigation purposes, appraisal of motels/hotels, apartments, office buildings, industrial properties and all types of vacant land. General appraisal experience includes valuation of residential subdivisions, industrial subdivisions, single-family residences, mobile home parks, estate valuations, partial interest valuation and retail commercial properties. Selected List of Clients: Arco Bank of America Califomia Commerce Bank Caltrans Centre City Development Corporation City of Chula Vista City of Poway City of San Diego City of Oceanside County of San Diego Comerica Bank Daley & Heft Higgs, Fletcher & Mack John Bumham Company Federal Deposit Insurance Corp. Fidelity Federal Bank Great Westem Bank Grossmont Bank McMillan Communities Imperial Bank La Jolla Bank and Trust Midas Realty Corporation Office of Thrift Supervision Port of San Diego San Diego City Schools San Diego Gas & Electric Company Union Bank of Califomia U.S. Navy Wells Fargo Bank Memberships: Appraisal Institute - MAI (No. 6926), SRA; past National Director - 1994; San Diego Chapter President 1984 (former Society of Real Estate Appraisers); Director -1987-89; 1994-1997; Regional Representative 1991-1997; Treasurer - 1990; Califomia Legislative Committee: 1992 Califomia General Real Estate Appraiser, State of Califomia (No. AG002571) Member - Intemational Right of Way Association Education: Bachelor of Science, Business Administration: Economics Major, University of North Dakota -1977 Successful completion of the following courses sponsored by Appraisal Institute: Basic Appraisal Principles (1-A) The Appraisal of Partial Acquisitions Capitalization Theory and Techniques (1-B) Valuation Analysis and Report Writing Seminars (Partial List): Litigation Seminar Apartment Seminar Appraisal Regulation Seminar Subdivision Analysis Seminar Business Valuation - SREA Standards of Professional Practice Case Studies in Real Estate Valuation Litigation Valuation Analysis of Problem Properties Capitalization Update Seminar Fair Housing Seminar Hotel/Motel Valuation Seminar Qualifications: Expert Wimess, Federal Bankruptcy Court; California Superior Court; Appointed Special Master to Superior Court; Course Instructor - AI Course Capitalization Theory & Techniques 310; Capitalization Theory & Techniques 510; Received Distinguished Service Award-1991 San Diego Chapter ofthe Appraisal Institute Professional: Lipman Stevens Marshall & Thene, Inc., San Diego Rasmuson Appraisal Consultants, Inc., Principal Lee C. Johnson Company, Associate Appraiser