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HomeMy WebLinkAbout1987-04-07; City Council; 8951 Exhibit 2; Senior Citizens CenterAPPRAISAL- REPORT FOR c c c CITY OF CARLSBAD AND CARLSBAD UNIFIED SCHOOL DISTRICT OF A 3.02-ACRE PARCEL (LAND ONLY) ZONED OPEN SPACE AND LOCATED AT PINE AVENUE AND HARDING STREET WITHIN THE CITY OF CARLSBAD DATE OF VALUATION MARCH 3, 1987 DATE OF REPORT MARCH 3, 1987 BY LEE C. JOHNSON COMPANY 8321 LEMON AVENUE LA MESA, CALIFORNIA 92041 (619) 462-4350 - LEE C JOHNSON COMPANY 8321 Lemon Avenue La Mesa, California 92041-5287 LEE C. JOHNSON COMP-ANY LEE C. JOHNSON. MAI. SRPA ROBERT J. PFLIMLIN, SR/WA RANDY A. TAG0 KENNETH A. KEAGY JEFFREY C. JOHNSON JOEL S. JOHNSON ESTELLE GEHRINGER KEITH 0. WRIGHT March 3, 1987 John J. Cahill Municipal Projects Manager City of Carlsbad 2075 Las Palmas Drive Carlsbad, CA 92009-4859 RE: Valuation of 3.02-acre (land Pine Avenue Gentlemen: Pursuant to your request, we have (619) 462-4350 File No. 87105-1 John H. Blair iii Business Manager Carlsbad Unified School District 801 Pine Avenue Ca r 1 s bad , CA only) school district site, ComDleted an awraisal of a 3.02-acre parcel (land only) currentl? zoned Opeh*Space and located along Pine Avenue at Harding Street, within the City of Carlsbad, as more particularly described in the enclosed report. We have made a careful inspection of the property and have gathered and analyzed considerable data and information having a bearing on its value. Our findings are submitted in the report herewith. Additional information upon which these findings are based will be retained in our files and is available if you desire. It is our opinion that the market value of the property, subject to the assumptions and limiting conditions as set forth within the body of this report, is as of March 3, 1987, ONE MILLION FOUR HUNDRED FORTY-SEVEN THOUSAND DOLLARS ...........$ 1,447,000.. .......... We would direct the readers attention specifically to Item No. 4 under Limiting Conditions. We hereby certify that we have no interest in the property appraised, present or prospective, and that our opinions are in no way contingent upon the basis of employment. We further certify that to the best of our knowledge and belief the statements and opinions contained in this appraisal are correct, subject to the limiting conditions expressed herein, and that this appraisal has been made in conformity with the Rules of Professional Ethics and Standards of Practice of the American Institute of Real Estate Appraisers. We appreciate the opportunity to be of professional service. Respectfully submitted, Tagg REAL ESTATE APPRAISERS AND CONSULTANTS -_. - - - - - .. __ ______ RAT : eg _____I - _II - - - Table of Contents V Letter of Transmittal.................................. iii Aerial Photographs ..................................... iv Summary of Salient and Conclusions..................... vi Purpose of the Appraisal ............................... vii viii Qualifications......................................... ix Representative Clients................................. xii Limiting Conditions and Assumptions ..................... Area Data and Introduction to Appraisal Assignment ..... 3 Property Description ................................... 12 Photographs ............................................ 17 Valuation.............................................. 20 Market Data Summary .................................... 23 Discussion of Adjustments .............................. 24 Correlation and Final Value Estimate................... 47 Certificate of Appraisal ............................... 52 Addenda................................................ 53 c c LEE C. JOHNSON COMPANY Vi SUMMARY OF SALIENT FACTS AND CONCLUSIONS c c c c LOCAT ION RECORD OWNER PROPERTY TYPE PARCEL SIZE South side of Pine Avenue, at Harding Street, City of Carlsbad. Thomas Bros. Page 13, F-4. Carlsbad Unified School District Currently public property. Value conclusion assumes vacant commercial. 3.02 acres. Currently part of a larger 10.51 acre parcel. Value conclusion assumes legal, separate parcel status. EX1 STING IMPROVEMENTS Older, public buildings currently occupied by Carlsbad Unified School District. These improvements have been neither inventoried nor valued as part of this assignment. ZONING Cbrrent zoning is Open Space. HIGHEST AND BEST USE Per client instruction, value conclusion assumes commercial zoning, consistent with an office building use. MARKET VALUE CONCLUSION $1,447,000 or $11.00 per square foot of site area. DATE OF VALUE March 3, 1987 FILE NO. 87105-1 LEE C. JOHNSON COMPANY vii PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the herein described and identified property based on a fee simple interest subject to the assumptions and contingent conditions as set forth in this report. DEFINITION OF MARKET VALUE The most probable price in terms of money which, a property should bring in a competitive and open market under all conditions requisite to a fair sale, with buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. 2. 3. 4. 5. 6. Buyer and seller are typically motivated. Both parties are well informed or well advised and each acting in what they consider their own best interest . A reasonable time is allowed for exposure in the open market. Payment is made in cash or its equivalent. Financing, if any, is on terms generally available in the community at the specified date and typical for the property type in its locale. The price represents normal consideration for the property sold, unaffected by special financing amounts and/or terms, services, fees, costs or credit incurred in the transaction. DEFINITION OF HIGHEST AND BEST USE The term "highest and best use" as used herein is the legal use which produces the highest net return to the land during a reasonable period of time and for which there is an existing and future expected demand sufficiently strong to affect the real estate market. Possible uses, as distinguished from reasonably probable uses, have not been considered. Society of Real Estate Appraisers, Real Estate Amr a i sd -1oav , (January 1982, p.160) The American Institute of Real Estate Appraisers and The LEE C. JOHNSON COMPANY viii LIMITING CONDITIONS AND ASSUMPTIONS In the preparation of this report certain basic assumptions have been relied upon. There are also certain limiting conditions which circumscribe the scope of-this report. 1. 2. 3. 4. 5. 6. 7. It is assumed that information and data, including maps and engineering estimates, furnished by our client and others are substantially correct. That no guarantee is made as to the correctness of estimates or opinions furnished by others and which have been used in making this appraisal. That no liabilities be assumed on account of inaccuracies in such estimates or opinions. As a title report has not been furnished, title of the property appraised is assumed to be marketable and free of all liens and encumbrances including easements, rights-of-way, restrictions and reservations of record which could adversely affect its value. Per client provided information, the subject site contains 3.02-acres of total area with dimensions of 520'+ along Pine Avenue and 253l depth. A site plan or similar graphic was not provided. This site is currently part of a larger 10.51 acre parcel owned by Carlsbad Unified School District. Per client instruction, value conclusion assumes a vacant, legal and separate parcel available for development as a commercial office site. Current zoning is Open Space. As such, the traditional concept of highest and best use has not been considered. Existing improvements have been neither inventoried nor valued in this assignment. This report was done by Randy A. Tagg and Richard K. Barrett and has been neither read nor reviewed by Lee C. Johnson. That no liability is assumed on account of matters of a legal nature affecting this property, such as title defects, liens, encroachments, overlapping boundaries, et cetera. Maps, photos and plats furnished by this appraiser are not based on a survey but are furnished as an aid to the reader in visualizing the property. Disclosure of the contents of this appraisal report is governed by the By-Laws and Regulations of the American Institute of Real Estate Appraisers of the National Association of Real Estate Boards. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which he is connected, or any reference to the American Institute of Real Estate Appraisers or to the M.A.I. or R.M. designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without the prior written consent and approval of the Lee C. Johnson Company and Richard K. Bar rett . LEE C. JOHNSON COMPANY . QUALIFICATIONS ,. ix RANDY A. TAGG EDUCATION ASSOCIATION MEMBERSHIPS EMPLOYMENT APPRAISAL EXPERIENCE SUPPLEMENTAL INFORMAT ION Grossmont Community College A.S., Real Estate 1979 San Diego State University B.S., Business Administration with emphasis in Real Estate, 1982 Real Estate Valuation and Eminent Domain Numerous seminars American Institute of Real Estate Appraisers Residential Valuation (8), 1980 Case Studies In Real Estate Valuation, 1982 Valuation Analysis and Report Writing, 1982 Standards of Professional Practice, 1984 Society of Real Estate Appraisers Basic Appraisal Principles (101), 1978 Capitalization Theory & Technique (201), 1978 Narrative Report Writing Seminar, 1981 Applied Income Property Valuation (202), 1984 International Right-of-way Association The Appraisal of Partial Acquisitions, 1981 Continuing Education in Real Estate Related Courses U.C.S.D. Extension Society of Real Estate Appraisers, Associate Member American Institute of Real Estate Appraisers, Candidate Member International Right-of-way Association, Member June 1978 to Present Staff Appraiser Lee C. Johnson Company La Mesa, California Single-Family Residential Commercial/Retail Industrial Properties Multiple Residential Vacant Acreage Farm Land Condemnation Easement Valuation Qualified as expert witness, Superior Court, County of San Diego, State of California County of Imperial, State of California Real Estate Brokers license, State of California LEE C. JOHNSON COMPANY jenlor Member 7 Soclety 01 Real Estale Appraisers X IONS OF RI€H&.R K. BAETT, SRPA EDUCATION Palomar Jr. College, San Marcos Associate in Arts "AA" 1950 Real Estate Practices 1972 Real Estate Legal Aspects 1973 Real Estate Appraisal 1973 Real Estate Finance 1973 Real Estate Exchange 1975 Real Estate Economics 1976 Real Estate Investments 1976 Real Estate Income Tax (audit) 1977 Accounting 1977 Real Estate Office Admin. 1979 UCSD Apartment Appraisal 1979 AIREA Course 8, Single Family 1977 AIREA Income Cap - I1 1980 AIREA Rural Valuation (audit) 1981 AIREA Condemnation workshop 1981 AIREA Income Cap workshop 1983 AIREA Crse 2-2 Case Studies 1983 AIREA Crse 2-2 Report Writing 1983 AIREA Crse 2-3 Prof Practice 1984 SREA Course 101 1977 SREA HP-22 Seminar 1977 SREA Crse 201 Income Apprasl 1978 SREA Narrative Report Writing 1979 SREA Lease Interest Valuation 1979 SREA HP-38/12C Seminar 1982 SREA Adjust for Finance Differences in Res Prop 1982 SOCIETY OF REAL ESTATE APPRAISERS - SENIOR REAL PROPERTY APPRAISER 1981 North San Diego County Chapter 129 - Society of Real Estate Appraisers Director. ........ 1978-1979 Secretary ........ 1979-1980 Vice President. ..... 1980-1981 President ........ 1981-1982 Director. ........ 1982-1983 AMERICAN INSTITUTE OF REAL ESTATE APPRAISERS - MA1 CANDIDATE 1981 ESCONDIDO BOARD OF REALTORS - AFFILIATE MEMBER GRI RICHARD K. BARRETT, SRPA- 2817 Mornlng&$~TJ~~~ CoMPftNy Escondido, CA 92025 . (619) 741-0185 xi EXPERIENCE Ten years chief Executive Officer of Real Estate subsidiary of San Diego supermarket chain. Market operations extended into ' Riverside and San Bernardino Counties. Directly responsible for acquisition, site development and property management. Licensed Real Estate Broker and Independent Fee Appraiser 1971 Senior Appraiser - Security Pacific National Bank 1977 - 1979 Appraised all types of real property principally located throughout San Diego County including single family residences, residential income properties ranging from duplexes to large apartment complexes, office buildings, commercial buildings,small shopping centers, industrial Complexes, residential subdivisions, agricultural properties and various other classes of real property. Senior Appraiser - Southwest Bank 1979 - 1981 Principal duties included appraising various classes of income producing property throughout Southern California (San Diego County, Riverside County, San Bernardino County and Los Angeles County) including resi- dential income properties, ranging from duplexes to large apartment complexes, office buildings, retail commercial buildings, mobile home parks, recreational vehicle parks, agricultural properties, industrial property, various bank branch location including fee ownership and leasehold interests, residential subdivisions, single family residences, and various other special purpose properties. Independent Fee Appraiser and Consultant 1981 to Present Have completed numerous written appraisals of most classes of property, including residential, residential subdivisions, commercial, industrial, farm, ranch, groves, multi-family income residential, income properties, special purpose properties consisting of churches, bank branches and bank branch sites, and mountain and desert land. Orange County AREA San Diego County Riverside County San Bernardino County Los Angeles County LEE C. JOHNSON COMPANY REPRESENTATIVE CLIENIS A"!ZS xii Asaro and Keagy Ashley, Bra@ and Cerniglia Atherton, Allen, Mason and Cannon Davies, Barwick and Knuwlton Gray, Cary, Ames and Frye Hervey and Wood Higgs, Fletcher and Mack Jenkins and Perry Jennings, Engstrand and Henrikson Knutson, 'Ibbin, Meyer and Shannon Lightner and Castro Lindley, Lazar and Scales Luce, Forward, Hamilton and Scripp McDougal, Meloche, Lave and Eckis McInnis, Fitzgerald, Rees Metz and Monaghan Milch, Wolfsheimer, Wagner Mitchell, Ashworth and Keeney Porter and Huffman Seltzer, Caplan, Wilkins and McMahon Wright and L'Estrange OORPORATIONS Alessio Leasing Corporation Atlantic Richfield Corporation Coldwell Banker Management Corporation Continental Title Insurance Cow Line Corporation Cubic Corporation Data Card Corporation Eashan Kodak Equitable Relocation Executrans, Inc, Foodmaker, Inc. Grossmont Hospital Gulf Oil Company - U.S.A. Hornequity, Inc, IBM Corporation Insurance Company of North America International Harvester Investors Mortgage Insurance Corporation KJX Management Corporation Baldwin Company Best Construction Brennan Enterprises - B r oadmoor Hme s Chilcote Inc. Drogin Construction Company - Dunphy Construction Catpiny Gascon Developnent Genstar Corporation Harry L. SuIIyners, Inc. c - Kaiser Hospital Kayo Oil Company Non-Linear Systems Pacific Telephone and Telegraph Prudential Life Insurance Company Relocation Realty Service Corporation Salk Institute San Diego Gas & Electric Company Safeco Title Company Servomation Corporation Shell Oil Company Square Pan Pizza Corporation Standard Oil Company Texaco, Inc. Title Insurance and Trust Company TI Home Transfer Corporation Transamerica Corporation Union Oil Company Westinghouse Corporation DEVELOPERS Kendall International Marsco Developnent Corporation Mobil Land Corporation Pieri-Debbas Enterprises Progress Develownt Rancho San Diego Ray L. Huffman Construction, Inc. Roth Construction Corporation Roy B. Collins, Inc. Wolfe Developnent LEE C. JOHNSON COMPANY AGEXIES xiii Caltrans City of Brawley City of Carlsbad - City of Chula Vista City of Del Mar City of El Cajon c City of El Centro City of Escondido City of Imprial Beach City of La Mesa City of Lemon Grove City of National City City of San Diego County of Imprial c - County of San Diego Federal Deposit Insurance Corporation Federal Housing Authority Internal Revenue Service Metropolitan Transit Developnent Board Otay Municipdl Water District State of California United States Navy Unified Port District U.S. Border Patrol U.S. custm Various California School Districts Veterans Administration LENDING INSTI'IUTIONS All Valley Acceptance Advance Mortgage Aetna Life Insurance Company American Mortgage Express American Valley Bank Bank of America Bank of Ccanmerce Bank of Coronado California Canadian Bank California First Bank California Heritage Financial Capital Bank of Carlsbad Citizens Western Bank Champion Mortgage Crocker National Bank Cuyamaca Bank Eaton Financial First Bankers Mortgage Company First Commercial Bank First Federal First La Mesa Bank First National Bank of North County General Mortgage Girard Savings Great American Savings and Loan Guarantee Mortgage Heartland Savings and Loan Home Federal Savings and Loan Imperial Savings and Loan Investors Mortgage Insurance Company John Burnham and Company La Jolla Bank and Trust Lamas and Nettleton Metro Financial Meracor Mortgage Pacific Coast Savings and Loan Peninsula Bank Peoples Bank Progressive Savings and Loan San Diego Trust and Savings Bank Security Pacific National Bank Security Savings and Loan Source Funding Sunitmo Bank of California Transtate Mortgage Ticor Mortgage Torrey Pine Bank Union Bank United California Mortgage Campany Western Interstate Westlands Bank World Wide Mortgage LEE C. JOHNSON COMPANY LEE C JOHNSON COMPANY ~~ 2 Area Data and Introduction to Appraisal Assignment The property which is the subject of this report is located within the City of Carlsbad. Carlsbad is situated on the Pacific Coast in northern San Diego County, as shown by the enclosed regional map. Located on the coast of southern California, San Diego County is bordered on the north by Orange County, on the south by Mexico, on the east by Imperial County and to the west, the Pacific Ocean. The County covers 4,255 square miles and contains 18 incorporated cities, with the City of San Diego being the largest in both land area and population, The City of Los Angeles, located approximately 120 miles north of San Diego, is the nearest major metropolitan area. The diverse geography of San Diego County features coastal, desert and mountain terrain. Western San Diego County is characterized by a plain or mesa extending approximately ten miles inland from the coast. To the east, this coastal plain graduates into hills rising to 2,000 feet. Beyond the intercoastal valleys and surrounding hills, the land continues to rise until the crest of the Laguna Mountain range is reached, about 40 miles inland. This range runs parallel to the coast and is between 3,000 and 5,000 feet in elevation with occasional peaks rising to 6,500 feet. Beyond the mountains, the land drops rather sharply back to sea level in the Salton Sea area which is part of Imperial County and the great Colorado Desert. The coastal Pacific influence is demonstrated by San Diego's mild climate with average daily temperature variations of about 13 degrees. The average high temperature for the county is 70.2 degrees Fahrenheit and the average low is 56.2 degrees. Average annual rainfall is 11 inches. This combination of mild temperatures and geographical variation makes San Diego County an attractive area for many forms of commerce including tourism and recreation. Established in February 1850, San Diego is one of California's original 27 counties. In June 1850, the first population census of California was taken and San Diego, officially, had 798 residents. Population growth within the county was slow during the next 30 years, however, the ten year period between 1880-90 saw a surge in population growth as the opening of the Santa Fe Railroad created a wave of new in-migrants. During the 1920's and 1930'~~ the population within San Diego County nearly doubled, reaching 210,000. World War I1 prompted the expansion of San Diego's military installations and increasing military aircraft production brought an influx of capital to the county. As a result, San Diego's military and civilian populations increased rapidly. In recent years, the rate of in-migration to San Diego has lead the nation as people continue to move from the north/northeast into the sunbelt. The following table illustrates the population change within San Diego County over the past 25 years. 2 .--. ... LEE C JOHNSON COMPANY LEEC. JOHNSONCOMPANY 4 COUNTY OF SAN DIEGO POPULATION GROWTH c c c c 1960 1965 1970 1975 1980 1986 1,049,000 1,165,000 I, 366,000 1,616,900 1,866,400 2,166,000 These population statistics, provided by the California Department of Finance, reflect an average 3% annual population growth over the past 25 years. County population growth is expected to continue and reach 2,548,000 by 1995. In general, a rising population means increasing property values. City of Carlsbad Located 35 miles north of downtown San Diego on Interstate 5, this beach-oriented community has a current population of 46,500+ residents and has been the fastest growing city in the county since 1980. It is also one of the top 10 fastest growing cities statewide. Carlsbad was incorporated in 1952, escaping annexation to Oceanside. Current growth rate is 3,000 residents per year, or about 7%. Countywide growth rate is about 2% annually. Various annexations, notably the La Costa area in 1972, has extended Carlsbad south to Batiquitos Lagoon and eastward to the boundaries of Vista and San Marcos. With a mayor/council/manager form of government, Carlsbad now contains 37.5 square miles of which +35% is developed. Projections show the city's population will reach 85,600 by the year 2000, making it the fourth largest city in the county. Annual average high temperature is 66 degrees with an average low of 51.6 degrees. Average annual rainfall is 9.45 inches. The present climate is a positive amenity, a magnet attracting people to the county as a whole and Carlsbad specifically. The city provides a wide range of government services including a large planning department directing the city's growth. Development Activity After a sewer moratorium in 1978 and unfavorable economic conditions which followed, a building surge has occurred within Carlsbad over the past few years. The city is rapidly becoming a major hub of industry in North County, with an estimated $1.5 billion in projects completed or planned, mostly in the area of Palomar Airport. During the 1984-85 fiscal year, commercial/industrial building permits totalled $24.4 million, compared to $23 million the previous year. Residential development is booming with $160 million in permits issued during the fiscal year that ended June 30, 1985. A similar figure is projected for fiscal 1985-86. Spinaker Point, Vista Pacifica, Las Playas, Meadowridge, Calavera Hills, The Villas, and The Trails among other projects offer hundreds of attached/detached new homes ranging from $80,000+ to $243,000. - CARLSBAD VILLAGE REDEVELOPMENT PROJECT - SUB-AREA MAP L, LEE C JOHNSON COMPANY b c Industrial development within the city includes the 559-acre Carlsbad Research Center, 330-acre Palomar Airport Business Park among others. Many of these are around the Palomar Airport. The city's emergence as an R&D center is only one factor contributing to substantial growth and economic stability, The city is expected to become a major resort community and conference center. The Interstate 5 corridor between Palomar Airport Road and Poinsettia Lane has blossomed as a travel service area. Recently completed hotels include Lexington Hotel Suites, Economy Inns, Travelodge and All Star Inns in addition to Kaiser Medical and restaurants. Pea Soup Andersen's Restaurant and a 76-room hotel was completed in 1982. Batiquitos Lagoon will become the focus of a golf course and eventually a large hotel, resort amenities and numerous homes to be built over the next two decades. Villaqe Redevelopment Project "Incentive to business development is lacking but even if it existed the physical capacity to accommodate business is lacking, This same lack of incentive decreases the inclination of the individual property owners or enterprises to modernize, As a consequence the process of deterioration sets in until community finds a commercial slum developing in its very midst. " The above quotation was taken from the Preface to the Carlsbad Village Area Redevelopment Plan adopted in April, 1981. Since then, Carlsbad's 300-acre redevelopment area, representing $104+ million in private and public investment, is considered a success with few vacancies in the city's older and well-established downtown area. This redevelopment project is expected to take many years to complete, with a good start to date. The subject property is influenced by but located just outside the redevelopment area. Overall goal of the Village Area Redevelopment Project is to create a pleasant, attractive, accessable environment for living, shopping, recreation, civic, cultural and service functions through elimination of blighting influences and through restoration and new, private/public development forms which preserve and enhance the existing character of the village area and surrounding community. As shown by an enclosed map, the redevelopment project is subdivided into seven areas to permit development throughout the project to occur in a coordinated manner. Sub Area 1 (see exhibit) has traditionally functioned as the central business district. Its 1 and 2 story shops and offices along State Street met retail and service needs of Carlsbad for several decades. External factors, such as El Camino Real Shopping Center and reorientation of the major north/south thoroughfare from Old Highway 101 to Interstate 5, have affected the economic viability of the downtown area. Goal for Sub Area 1 c LEE C. JOHNSON COMPANY 7 F is to function ai a major financial, ipecialty and commercial center for the downtown area, Located within this sub AM is the Village Centre which will act as a focal point and become the major attraction for the Village Project area. Urban design for the Village Centre shall be that of a village atmosphere, concentrating on pedestrian circulation and high levels of open space amenities. Elm Avenue will serve as the major east/west gateway to the Village Centre and beach access points and should develop as a strong financial and commercial center. Sub Area Nos. 4 and 7 are within two blocks of the subject property. Sub Area 4 has traditionally functioned as a heavy commercial, light manufacturing area. Redevelopment goal for Sub Area 4 is to create a light manufacturing/heavy commercial area that will serve the project area. Overall, this Sub Area could function as a major repair and service; distribution; and/or vocational education center. Sub Area 7 traditionally has accommodated residential and commercial development to occur simultaneously. Goal for this area is intended to permit and encourage mixed-uses among residential and service commercial/office uses. Primary circulation streets identified in the redevelopment plan are Elm Avenue, Grand Avenue, Carlsbad Boulevard, Roosevelt Street and Jefferson Street. Proposition E As indicated in this discussion, the City of Carlsbad has been experiencing a substantial increase in population and development over the past few years. Citizens of Carlsbad are very much concerned about the city's rapid growth and desire a lower rate of development in order to permit effective advance planning and establishment of adequate municipal services such as streets, water, sewage disposal and other customary services. As a result, the voters passed Proposition E in November 1986, which effectively slows down or reduces future development within the city. A copy of this proposition is included in the Addenda section of this report. The city has been divided into four quadrants, along El Camino Real and Palomar Airport Road, each quadrant has been alloted a maximum number of residential dwelling units to be constructed or approved after November 1986. The subject property lies within the northwest quadrant where there are 10,133 existing dwelling units and a future allotment of 5,844 units. As of September 1986, there was a reported 11,948+ net residential acres within the city under various zoning from Low Density allowing 0-1.5 dwelling units per acre to High Density allowing 15-23 dwelling units per acre. Also included within the city are 2,3202 net acres of Open Space. In order View southerly along Harding Street. Subject is on the right. View easterly along Pine Avenue. Subject is on the right. LEE C. JOHNSON COMPANY .. 9 to adequately assess and plan for countywide public facilities and services, it was necessary to project the level of development that can be anticipated at ultimate build-out of the city. These projections take into consideration recent ordinances adopted by the city which reduce residential density and restrict overall future development throughout the city. The net developable acreage figure was multiplied by the number of dwelling units allowed per-acre using the city's "controlled yield" density ranges, which are as follows: Allowed Dwelling Units Per Acre Residential Land Use Controlled Yield RL 0 - 1.5 RLM 0 - 4.0 RM 4 - 8.0 RMH 8 - 15.0 RH 15 - 23.0 1.0 3.2 6.0 11.5 19.0 These Control Yield densities represent either the mid-point of the city's adopted density ranges or actual experience using existing developments within each land use category. Note: The following information was taken from the Citywide Facilities and Improvements Plan for the City of Carlsbad dated September 1986. Neiqhborhood Analysis Specifically, the subject site is located immediately south of the downtown business district, along Pine Avenue at Harding Street. Surrounding land usages include older single-family residential, apartment, church and day school. The traditional downtown core area of Carlsbad is located along Elm and Grand Avenues immediately north. Interstate 5 passes through the area, immediately east, with access provided at Elm Avenue. Single-family residential development surrounding the subject site is generally 30-50 years of age and smaller with a price range of $60,000 to $90,000+. There are also some newer apartment projects in the area. Carlsbad State Beach is located immediately west on Elm Avenue. Major thoroughfares in the area include Interstate 5, Elm and Tamarack Avenues. Zoning on the subject site is Open Space and General Plan designation is Elementary School. Zoning and General Plan designation in the immediate vicinity is High Density Residential. LEE C. JOHNSON COMPANY i c growm -nt PIM ma 1) NO DEVELOPMENT SHALL BE - mom by the c&y Of Cufsbad un)ess tt ts g~aranteed that COlIQIrrent 4th need 04 neC€awy publlc fc*ties be provlded as requlred by sald plan 4th amphasr, on ensurlng good traffic arculatlon, ~~ parks. librsrles, open spece and rea9clbond amenrtiss; and 2) . tne aty Cauncrl shall not approve rasklentlal devekpment whlch Hrould lncze8sa the number of dwelRng urn wnd ths Hmt In satd ordlnance WlTl$JT AN AFFIRMAnVE VOTE OF THE CITIZENS. The CXy may add addltk%?CpUW)cfachUee. The Uty shall rot reduce puMk laalrtlss wthout a corresponding reduclion In the resldentla! dweiling UN llmh PROPOSED ORDINANCE - The People of the CJty of c.rlsbad do ordaln os folkws: A That the Cartsbad general plan shall be amended by the mndmt. ot the Pubic FauliEies and Land Use Elements to add the fooOWing: The City of Carlsbad in implwrmnting I& public fadUtlee element and growth management plan h.s made an esbmate of Uie number ot dweUlng uniis that wii be buln as a result of the application of the dew ranges in the Land Use Elemecll to lndhndual projects. The &Q'B eapnal Improvement Budget growth rrmnagement plan. and puMc fealitles plans are aH based on thrs esMlate. In order to emre that ail nec~ssary publc facllmeS vnll be avslhMe concurrent wrth need to serve new development It is necessary to limt the number of resldenfml dwelling unrts whkh car^ be consauaed in Crty to that estunate. For that purpose the CAy ha3 been div~ded into four quadrants along €I Camno Real and Palomar Airport Road. The maximum number of resldedal dwerrtng unrts to be construcmd or approved in the CXy after November 4, 1988 !s %3 follows: Northwest Quadrant 5,844: Northeast Quadrant 6,168; Southwes! Quadrant 10,687; SoutDeast Quadrant 10,801. fhe crty shall not approve any General Plan amendment, zone change, tentawe subdlvlsron map or other discretionary approval for a devebpment whtch could result in development above the limt in any quadrant In order to ensure that devebpment does not exceed the lvnt the follomng growth management control polnts are established for the Land Use Uement densify ranges. - ALLOWED DWELUNG UNITS PER ACRE Genera! Pian Growth Management Densttv Ranaas Control Polnt RL 0 - 1.5 RLM 0 - 4.0 RM 4 - 8.0 RMH 8 - 15.0 RH 15 - 23.0 1 .o 3.2 0.0 11.5 19.0 (Cantlnued on next page) PR-001.1 409-37 .. LEE C. JOHNSON COMPANY The Uty shaH not approve any rddential &pment at a density that exceeds the groWm management control point for the applicabk dew range without making the following findings: 1. That the project will provide sulfident addklonal puMk feciltUes for the density in axcass of the corm01 point t6 ensure mat the adeqvscy of the “3 PUM~ fdttjea plans MU not be adversely irrgdcted. 2. That mecS have been armdent development3 approved In the quadrant at densities Ww me control point to cover the units In the prow above the control point so the approval MU rmt rssull In exceeding the quadrant lirrit The Cny M~sgt~ shall monitor aU approvats and report to the Planning Commission and City Council on M annual basb to emre mat the construction of rasidential units within each quadrant. on a curmlative basis, win be at or below the growth management control points and that the overall quadrant llrrits are being maintained. If the annual report Indicates in any way that il is likely that the limit may be exceeded, the Council shall take appropriate action by revising the growth management plan and the CHy‘s zoning code to ensure that the wlings will be maintained. The City Council or the Planning Comnission shall not flnd that all necessary public faciliUes will be available concurrent with need as required by the Public Fec!Itiks E!ernant and ?he CHy‘s 1986 growth management plan unlsss the provision of such facilities is guaranteed. In guaranteeing that the facilities will be provided emphasis shall be given to ensuring good trallic circulation, schools, pds, libraries, open space and recreational amenities. Public facilities may be added. The City Council shall not materially reduce public faciltfies without making corresponding reducfions in residential densities. Nothing In this secdon shall be conswed 89 changing the requirement that any speufic residential density above the minimurn allowed by the Land Use Element densrty ranges and the applicable zoning shall be justified according to the requirements of the appropriate General Plan and zoning provisions. (Continued on next page) PR-001.2 409-38 LEE C. JOHNSON COMPANY 4c c C. The Cny Coundl shd adopt amendments to Chapter 2l.90 of the Carisbad Munidpal Code (Growth Management) 89 rmxssap to implement tha Gemel Plan amendment of Section A and the Map of Section 6. 0. Thls ordinance Is inconsistent with and Intended as an alternative lo any lnitlattve whch would placa an annual numerical linvtatlon on the rate of resldenflal n. ll this ordinanca and any such inmath ordinance am both passed by a t~ng thereon then the one wth the most votes shall preval." 409-39 LEE C. JOHNSON COMPANY 10 Introduction to Appraisal Assicrnment Our assignment is to provide the City of Carlsbad and Carlsbad Unified School District with a market value estimate for a 3.02-acre parcel, considered vacant and available for development consistent with a commercial office land use. The traditional concept of highest and best use was not considered. Estimating the market value of property involves a systematic process in which the problem is defined, the work necessary to solve the problem is planned, and the required data is gathered, classified, analyzed, and interpreted into an estimate of value. The approaches appraisers use in arriving at value conclusions are commonly classified under three headings -- usually labeled Cost; Income; and Market, or Direct Sales Comparison, analyses. The Income Approach is utilized in valuing properties which have the capability to produce rental income or the equivalent which the appraiser may convert to an indicated value.The Cost Approach is utilized where significant structural improvements have been created consistent with the highest and best use of the site. The appraiser analyzes the costs of creating such improvements, subtracting depreciation, to arrive at the contributory value of improvements. The Market, or Direct Sales Comparison, Approach is based on the premise that transactions between independent parties buying, selling, developing, and utilizing real estate are evidence of value. This valuation method involves the comparison and contrast of the subject property with similar properties which have sold on or about the date of valuation. These properties are compared and contrasted with the subject with regard to differences or similarities in date of sale, age of improvements, location, physical characteristics, and conditions influencing the sale. Notable differences in the comparable properties are adjusted to the subject property to indicate a value range for the property being appraised. When sufficient sales data is available, these adjustments are best determined by the actions of typical buyers and sellers in the marketplace. The value range, as indicated by the adjusted comparable properties, is correlated into a final indicated value for the subject property by this valuation method. Because this assignment involves the appraisal of a theoretical vacant and undeveloped site, the traditional Income and Cost approaches were considered not applicable. Neither of these approaches is appropriate nor typically used by the market in valuing/marketing vacant sites. We have relied on the Direct Sales Analysis or Market Approach in valuing this property. A discussion of our investigation and findings follows. LEE C. JOHNSON COMPANY FS2. CLli.4 8 [ Plat Map 1 .. . Ll w .. Lrl ST 0 IO 5 I AC. 1 I LEE C. JOHNSON COMPANY 12 PROPERTY DESCRIPTION Record Owner Carlsbad Unified School District Location The property which is the subject of this report is located within the southwest quadrant of Pine Avenue and Harding Street, west of Interstate 5, and immediately south of the downtown commercial district within the City of Carlsbad. Thomas Bros. Page 13, F-4. Leqal Description Generally described as a Portion of Blocks 46 and 59, Town of Carlsbad Amended, Map 775. A legal description written specifically for the subject site is not available to date. Size and Shape Generally rectangular-shaped parcel with 520+ front feet along Pine Avenue and 2532' along Harding Street and containing 131,551+ square feet or 3.02 acres. Note: The above parcel size information was derived using client provided information along with assessor plat map. The subject site is not a legal and separate parcel to date, being a portion of a larger 10.51-acre parcel owned by the school district as shown by the facing graphics. Per client instruction, value conclusion assumes legal and separate parcel status. Topoqraphv/Soils As shown by enclosed photographs, the site is generally level, at grade with each street frontage. Drainage appears adequate. A soil report was not available for review by the appraiser and soil condition is assumed adequate for development consistent with a proposed office use. Easements A title report was not available for review by the appraiser. Physical inspection of the site did not indicate any adverse easements. It is reasonable to assume the parcel to be encumbered by typical public utility easements which should not interfere with proposed office development. c . 14 Street Improvements Pine Avenue is fully paved including curbs/sidewalks and publicly maintained. It is 80' in width and carries two lanes of two-way traffic. Harding Street is also fully paved and publicly maintained. It is also 80' in width and carries two lanes of two-way traffic, Intersection is not signalized. Pine Avenue is not a through street, running from Tyler Street to Interstate 5 without freeway access. Harding Street connects the downtown area with Magnolia Avenue to the south. Access to the site would be provided from each street frontage. A 20' wide paved alley parallels the westerly property boundary. Utilities Located within the City of Carlsbad, all customary municipal utilities are available to the site. A 12" water main is located in Pine Avenue. A 10" sewer main and 8" water main are located in Harding Street. Z on i ns/Gene ral Plan Current zoning designation by the City of Carlsbad is Open Space. General Plan designation is E, or Elementary School. In May 1975 various city properties including school sites were rezoned to Open Space in accordance with a policy decision. Property has been valued using a commercial zoning. See Highest and Best Use section. Assessment Information (1987) AP No, : 204-100-04 (portion) Note: This is a publicly-owned property currently non-assessed. Upon sale to the private sector, annual property taxes would aproximate 1% of market value. The subject site involves only portion of a larger assessor parcel and is not a legal and separate parcel to date. Per client instruction, value conclusion assumes legal and separate parcel status. Present Use/Improvements As shown by enclosed photographs, the subject parcel is currently improved with various older public buildings. Per client instruction, they have been neither inventoried nor valued in this assignment. 16 c Hiqhest and Best Use Per client instruction, the subject site has been valued assuming a commercial zone consistent with office development. Highest and Best Use, as traditionally defined, has not been addressed in the valuation of this property. Date of Inspection February 11, 1987 LEE C. JOHNSON COMPANY View northerly along Jefferson Street. Subject site is in the background. Surrounding land usages include older single family; apartments; church and day school. Downtown commercial area is immediately north. Paved alley parallels the westerly property boun~@gyrn,,&&ij~~,.,$s on the left. Older single family on the right. Subject site - View southwesterly. Located at Pine Avenue and Harding Street, City of Carlsbad. Contains 3.02 acres. View southeasterly across Pine Avenue. Existing older educational improvements. Per instruction, value conclusion assumes a vacant, 3.02-acre legal parcel available for development consistent with highest and best use. Photographs taf&fi J3%!8'8%c$'fP/I!87 by appraiser VALUATION LEE C. JOHNSON COMPANY VALUATION 20 Our assignment is to provide the City of Carlsbad and Carlsbad Unified School District with a current market value estimate of the herein described subject property. This property is located immediately south of the downtown area of Carlsbad, along Pine Avenue at Harding Street. The 3.02-acre site is currently part of a larger 10.51-acre parcel owned by Carlsbad Unified School District and improved with older ,educational buildings. Current zoning designation is Open Space and General Plan designation is E, or Elementary School. The City and Carlsbad Unified School District are negotiating City acquisition to facilitate the design and construction of a joint City of Carlsbad Senior Citizens Center and District administrative office complex. Instructions to the appraiser, for valuation purposes, is to assume a vacant, 3.02-acre legal and separate parcel available for development consistent with an office use. In Carlsbad, an office use would require a commercial zoning designation. Due to client instruction, the traditional concept of highest and best use has not been considered in the valuation of this property. Best indicator of subject property value is actual market activity involving similar commercially-zoned sites in the immediate vicinity. In valuing the subject site, using a Direct Sales Analysis Method, a search was conducted throughout the City of Carlsbad for recent, commercially-zoned vacant site acquisitions as disclosed by the Nationwide Real Estate Register and Comps, Inc. Each is a well-known data service utilized by the real estate industry. The Nationwide Real Estate Register monitors the County Recorders Office and, theoretically lists every recording by assessor parcel number. Using this source as a raw data base, appropriate transactions are further investigated and either included within the report as valid value indicators or disgarded due to lack of comparability or other reasons. Recent sale activity involving commercially-zoned sites in the downtown area is scarce. As such, the appraiser has gathered data from the city as a whole. Office site transactions have been taken from developing office areas of Carlsbad such as the Interstate 5 corridor and Palomar Airport area. Recent sale of a directly comparable site in close proximity to the subject was not available for analysis. Enough information was available, after adjustment, to arrive at a supportable value conclusion for the subject site. Copies of grant deeds and assessor plats pertaining to market data items were obtained from county records. Those documents which did not indicate an "arms-length" transaction were disregarded. Each transaction was then field-checked to determine physical features, location, access, etc. In processing the sales data, each comparable transaction was LEE C. JOHNSON COMPANY 21 analyzed and compared with the subject property in all details. Adjustments were considered to reflect the influence of time, location, size, topography, zoning, freeway influence and other value characteristics as they relate to the subject. Other factors considered in the process of applying adjustments to the comparable transactions include street improvements, availability of utilities, proximity to major developments and sale conditions. Each adjustment reflected judgment based upon findings in the market resulting from our investigation and experience. The following chart summarizes those sales considered most comparable to the subject property. A more detailed discussion of the sales and adjustments required follows. LEE C. JOHNSON COMPANY 4 9. 4. d. 04 uu aa c c 0 -4 4J a rlwJJrl a, 0.4 3LImLI 0. o Lc LI a-4 c uw5 JJ -2 0 oatis 4 aw gl H a om a u li 0 .- c H -4 LI c c c 7 c c 0 m m 0 d d (u rl u) rl rl rl a- * * . . . rl I- m d rl Pa a- (u rn d rl d rl a- m u) I- * . 03 (u (u 0 . (u rl ill . a3 a- 03 * u' a E 5 m 0 0 0 W P I- O m m 0 0 0 0 0 0 0 m 0 m 0 u) 03 I- m In a3 . a JJ a CI U a, Y Lc a 2: . . . I- 0 P rl . d l-4 . P . m m . 03 (u . 0 m rl 0 0 0 0 0 0 0 0 0 0 0 0 (u rl u) . . . . d 0 In 03 (u rl L . h . m 0 rjl 0- In rl rl m W iu I- m * . rl rl . rl a- a- * * a- a- * * * W 03 > In s rl m s rl rl rl rl m 2 -4 E w 0 U 4 rl (u m w m d m c LEE C. JOHNSON COMPANY 24 Discussion of Adjustments In utilizing a Direct Sales Analysis Method or Market Approach, the appraiser analyzes comparable market data, making adjustments to reflect differences in value characteristics. In analyzing market data, to arrive at a value conclusion for the subject site, consideration was given to the following value characteristics. 1. 2. Time - The length of time for which a specific sale comparison may be useful varies with characteristics of the market. During periods of appreciation, it becomes necessary to make an upward adjustment to sale price on transactions which took place prior to the date of value, to reflect increasing prices. As indicated in the Area Data section, considerable development activity is occuring in the Carlsbad/North County area including residential, industrial, commercial/retail and office. Substantial growth has occured within North County over the past few years along with continued demand for living and work space. As demonstrated by current development activity, there is a demand for well-located commercial/office sites in the Carlsbad/North County area and it is reasonable to assume some upward price pressure on available sites. The appraiser believes a 5% annual price appreciation rate to be reasonable for vacant sites. Each transaction submitted within this report occured between September 1984 and April 1986. Recordings during 1986 involving office building sites within the City are scarce. In this analyses, we have applied a 5% annual appreciation rate to older data. Location - The subject site is located at Pine Avenue and Harding Street, immediately south of the downtown commercial district and west of Interstate 5. The site is located just outside the Village Area Redevelopment Plan. As shown by enclosed aerial photograph, surrounding land usages include older single-family residential, apartments, day school, church and school facilities. The area is also in close proximity to Carlsbad State Beach. Other than school property, the area appears fully developed and new construction would generally require removal of existing improvements. Streets in the area are publicly maintained, in good condition. Access to the subject site from Interstate 5 is provided from Elm Avenue to Jefferson Street. Water and sewer mains, adequate to serve additional development are located in Harding Street or Pine Avenue. In the comparison process, location of comparable data was considered and adjustments made to reflect freeway influence, proximity to major developments and similar value characteristics. LEE C. JOHNSON COMPANY I I ,I 25 c siac/utiiitv - POT valuation pu~pose~~ the subject site is a vacant, 3102=acre legal parcel available for development as an office site. The property is level, at street giade and drainage appears adequate. Utilities are located in the street, the site is totally usable and unusual grading or fill would not be required prior to development. Market data available for analysis ranges from 7,000 square feet to 6.05-acres of total area. Data submitted is generally level or slightly undulating, at street grade requiring little or no additional site work prior to construction. In each case, municipal utilities are located in the street and each parcel fronts paved, public access. Topography and availability of utilities is a factor as it relates to development cost. Transactions involving very small parcels may also reflect a higher per-square-foot indication than may be applicable for a substantially larger site. In the adjustment process, consideration was given to these physical characteristics. 4. Zoninq - The subject site is currently under public ownership and use, zoned Open Space with a General Plan designation of E, or Elementary School. Per client instruction, value conclusion assumes a vacant, legal and separate parcel available for development with an office use. In the City of Carlsbad, this would require a commercial zoning. Market data items included within this report have a Commercial or Light Industrial zoning designation. Not all sites used as comparables are developed as office sites however each is representative of commercial land values within the City. In the adjustment process, consideration was given to highest and best use potential of comparables as they relate to the subject site. A summary of each land transaction follows. --I 30 W > 1 4 I 8 0 . MAD I SON D 5T 9 r I I i r I L r 1 9 TYLER .. LEE C. JOHNSON COMPANY c c MARKET DATA ITEM NO. 1. 27 ASSESSMENT PARCEL NO. 204-081-11;12 c THOMAS BROS. Page 13, F-4 LOCATION - West side of Roosevelt Street, 25' north of Walnut Avenue, Carlsbad. LEGAL DESCRIPTION Lots 30 and 31 in Block 3.1 of TOWnt? of Carlsbad, Map No. 535, City of Carlsbad. c c c c SIZE AND SHAPE Rectangular-shaped interior parcel composed of two separate assessor parcels with 50 front feet along Roosevelt Street and 140' depth. Total site area is 7,000 square feet. TOPOGRAPHY Level, at street grade. STREET IMPROVEMENTS Roosevelt Street is two-lane, paved and publicly maintained. UTILITIES ZONING GRANTOR GRANTEE TRANSACTION PRICE SOURCE FILE NO. COMMENTS All customary municipal utilities are available to the site. City of Carlsbad. General Pian designation is CBD, Commercial. Located within Area 4 of the Village Area Redevelopment Plan and permitted uses include neighborhood commercial, auto related services, among others. Soledad Trejo Davila Romero Gilbert L. and Teresa V. Miranda Deed Dated: October 29, 1984 Recorded: November 5, 1984 Instrument No: 417112 Transfer Tax: $92.40 (FV) $84,000 or $12 per square foot of site area. TD to seller: $49,000 Inspection, public records and Teresa Miranda, buyer. 87105-1 (RAT) Surrounding land usages include older single-family residential and neighborhood commercial. A bar was removed in favor of an auto service facility, currently under construction. This area has been designated for neighborhood commercial and similar uses under the redevelopment plan. i c .. v _. . .- ST I . . . . TYLER ~~~ . LEE C. JOHNSON COMPANY 29 P MARKET DATA ITEM NO. 2 7 ASSESSMENT PARCEL NO. 204-081-08;09;10 THOMAS BROS. Page 13, F-4 LOCATION West side of Roosevelt Street, 75' north of Walnut Avenue, Carlsbad. LEGAL DESCRIPTION Lots 27, 28, 29, Block 31 of Towne of Carlsbad, Map No. 535, City of Carlsbad. SIZE AND SHAPE TOPOGRAPHY STREET IMPROVEMENTS UTILITIES ZONING GRANTOR c GRANTEE TRANSACTION - PRICE - - SOURCE FILE NO, COMMENTS c Rectangular-shaped interior parcel with 75 front feet along Roosevelt Street and 140' depth. Total site area is 10,500 square feet. Level, at street grade. Roosevelt Street is two-lane, paved including curbs/sidewalks and publicly maintained. All customary municipal utilities are available to the site. City of Carlsbad. General Plan designation is CBD, Commercial. Located within Area 4 of the Village Area Redevelopment Plan and designated for neighborhood commercial, auto related services and similar uses. Robert L, Neilsen Milton Miller Deed Dated: September 13, 1984 Recorded: November 2, 1984 Instrument No: 415262 Transfer Tax: $132.00 (FV) $120,000 or $11.43 per square foot of site area. Inspection, public records and file data. 87105-1 (RAT) Surrounding land use is older single-family residential and neighborhood commercial. Older single-family residences were subsequently removed. Located within redevelopment area. ST. h 5 T. CF CARLS2AD AMENDED bo i3LX 33 -LOT B @US 33,37,& 50 - LEE C JOHNSON COMPANY 31 MARKET DATA ITEM NO. 3 c c c - c- ASSESSMENT PARCEL NO. 203-306-09 THOMAS BROS. Page 13, F-4 LOCATION West side of Roosevelt Street, 100' north of Oak Avenue, Carlsbad. LEGAL DESCRIPTION Lots 27 and 28, Block 33, Towne of Carlsbad, Map No. 535, City of Carlsbad. SIZE AND SHAPE Rectangular-shaped interior parcel with 50 front feet along Roosevelt Street and 140' depth. Total site area is 7,000 square feet. TOPOGRAPHY Level, at street grade. STREET IMPROVEMENTS Roosevelt Street is two-lane, paved including curbs/sidewalks an5 publicly maintained. UTIL IT IE S ZONING GRANTOR GRANTEE TRANSACTION PRICE SOURCE FILE NO. COMMENTS All customary municipal utilities are available to the site. City of Carlsbad. General Plan designation is CBD, Commercial. Located within Area 4 of the Village Area Redevelopment Plan intended for neighborhood commercial and auto related services . Valiant Construction Company Ilario Manno Deed Dated: June I, 1984 Recorded: October 4, 1984 Instrument No: 377608 Transfer Tax: $126.50 (FV) $115,000 or $16.43 per square foot of site area. TD to seller: $92,000 Inspection, public records and file data. 87105-1 (RAT) A restaurant was subsequently completed on the site. Land uses in the immediate vicinity are mixed and the site is located immediately south of Elm Avenue, a main thoroughfare. Located within the Village Area Redevelopment. 33 MARKET DATA ITEM NO. 4A ASSESSMENT PARCEL NO. 203-303-20 THOMAS BROS. Page 13, F-4 LOCATION Southwest corner Jefferson Street and Grand Avenue, City of Carlsbad. c c c c LEGAL DESCRIPTION Lots 17, 18, 19 and 20, Block 49, Carlsbad Towne Site, Map No. 535, City of Carlsbad. SIZE AND SHAPE Rectangular-shaped corner parcel with 100 front feet along Jefferson Street and 140' along Grand Avenue. Total site area is 14,000 square feet. TOPOGRAPHY Level, at grade with each street frontage. STREET IMPROVEMENTS Each street frontage is fully paved including curbs/sidewalks and publicly maintained. Grand Avenue is a main east/west thoroughfare carrying four lanes of two-way traffic. Jefferson Street is two-lane. A 20' wide alley parallels the westerly property line. UTILITIES ZONING GRANTOR GRANTEE TRANSACT ION PRICE SOURCE FILE NO. COMMENTS All customary municipal utilities are available to the site. City of Carlsbad. General Plan designation is CBD, Commercial. Located within Area 1 of the Village Area Redevelopment Plan designated for uses such as headquarter offices, law/accounting firms, specialty shops, professional complexes and similar uses. RCP Partnership Leon and Sonya Per1 Deed Dated: November 14, 1984 Recorded: November 16, 1984 Instrument No: 431887 Transfer Tax: $319.00 (FV) $290,000 or $20.71 per square foot of site area. Inspection, public records and file data. 87105-1 (RAT) Located within the heart of the redevelopment area. Existing older improvements will be removed in favor of a professional office complex. Purchased in conjunction with a smaller parcel adjacent south. LC ,;I I . .I c I \:v #. . ~~ LEE C JOHNSON COMPANY ASSESSMENT PARCEL NO. THOMAS BROS. LOCATION LEGAL DESCRIPTION SIZE AND SHAPE c TOPOGRAPHY STREET IMPROVEMENTS UTILITIES ZONING GRANTOR GRANTEE TRANSACTIOh PRICE SOURCE nfr n wn MARKET DATA ITEM NO, 4B 2 03-303-19 Page 13, F-4 West side of Jefferson Street, 100' south of Grand Avenue, Carlsbad. Lots 21 and 22, Block 49 of Towne of Carlsbad, Map No. 535, City of Carlsbad. Rectangular-shaped interior parcel with 50 front feet along Jefferson Street and 140' depth. Total site area is 7,000 square feet. Level, at street grade. Jefferson Street is two-lane, paved including curbs/sidewalks and publicly maintained. All customary municipal utilities are available to the site. City of Carlsbad. General Plan designation is CBD, Commercial. Located in Sub Area 1 of the Village Area Redevelopment Plan. Designated land uses are headquarter offices, law/accounting firms, specialty shops, professional complexes and similar uses. Roy D. Atkin Leon and Sonja Per1 Deed Dated: October 11, 1985 Recorded: October 17, 1985 Instrument No: 387025 Transfer Tax: $165.00 (FV) $150,000 or $21.43 per square foot of sit? area. TD to seller: $120,000 Inspection, public records and file data. / ..’ LEE C. JOHNSON COMPANY P 37 MET DATA ITEM NO. 5 ASSESSMENT PARCEL NO. 214-450-16 THOMAS BROS. Page 19, C-4 LOCATION East side of Avenida Encinas, north of Poinsettia Lane, City of Carlsbad. LEGAL DESCRIPTION Lot 16 of Carlsbad Tract No. 81-5, Map 10899, City of Carlsbad SIZE AND SHAPE TOPOGRAPHY Irregular-shaped parcel containing 1.51 acres. Generally level, at street grade. Grading is currently underway. STREET IMPROVEMENTS Avenida Encinas is paved including curbs/sidewalks. Not a through road to date. UT IL IT1 ES ZONING GRANTOR GRANTEE TRANSACTION PRICE SOURCE FILE NO. COMMENTS Located within the City of Carlsbad, all customary municipal utilities are available. City of Carlsbad; C-2, General Commercial Carlsbad Corners, Inc. Arpple, Inc. Deed Dated: November 19, 1985 Recorded: December 16, 1985 Instrument No: 473346 Transfer Tax: $935.00 (FV) $850,000 cash or $12.92 per square foot of site area. Inspection, public records and file data. 87105-1 (RAT) Located along recently developed Avenida Encinas adjacent west of Interstate 5 with good freeway visibility. Recent adjacent development includes 3 motels and Kaiser Medical. A car dealership is planned for this site. Another car dealership is L .-- .--. - LEE C JOHNSON COMPANY 39 MARKET DATA ITEM NO. 6 c c c ASSESSMENT PARCEL NO. 210-100-08;09 THOMAS BROS. Page 19, B-2 LOCATION Southwest quadrant Palomar Airport Road at Interstate 5, City of Carlsbad. LEGAL DESCRIPTION Generally described as a .portion of Lot "H" of Rancho Aqua Hedionda, Map No. 823, City of Carlsbad. SIZE AND SHAPE TOPOGRAPHY Irregular-shaped parcel composed of two separate assessor parcels and containing 6.05 acres of gross area. Generally level, at grade with Avenida Encinas. STREET IMPROVEMENTS Avenida Encinas is two-lane, paved and publicly maintained. No access from Palomar Airport Road. UTILITIES ZONING GRANTOR GRANTEE TRANSACT TClN PF.1 CE SOURCE FILE NO. COMMENTS Located within the City of Carlsbad, all customary municipal utilities are available. City of Carlsbad; M, Industrial Palomar Venture, a limited partnership. Pacific Center Associates, a joint venture. Deed Dated: December 24, 1984 Recorded: February 15, 1985 Instrument No: 51784 Transfer Tax: $4,100.25 (FV) $3,727,500 or $14.14 per square foot of gross site area. Inspection, public records and file data. 87105-1 (RAT) Site was subsequently improved with a 50,000+ square foot office building known as Carlsbad Pacific Center. More is planned. Convenient freeway access with some visibility. Substantial development has occurred at this location over the past few years. LEE C. JOHNSON COMPANY F 41 I, c ASSESSMENT PARCEL NO. 212-070-19 THOMAS BROS. Page 19, F-1 LOCATION LEGAL DESCRIPTION SIZE AND SHAPE TOPOGRAPHY STREET IMPROVEMENTS UT IL IT I ES ZONING GRANTOR GRANTEE TRANSACTION PRICE SOURCE FILE NO. COMMENTS Southeast corner Rutherford Road at Geiger Court, within the Carlsbad Research Center adjacent north of Palomar, Airport, City of Carl sbad . Lot 25 of Carlsbad Tract No. 81-10 Unit No. 2A, Map 11134. Irregular-shaped corner parcel containing 85,378 square feet or 1.96-acre. Level, at street grade. Rutherford Road is two-lane, paved including curbs/sidewalks. Geiger Court is a paved cul-de-sac. All customary municipal utilities are available to the site. City of Carlsbad; C-M, Heavy Commercial-Light Industrial Carlsbad Research Center, a general partnership Tiff Investors, Ltd. Deed Dated: September 5, 1985 Recorded: January 22, 1986 Instrument No: 27517 Transfer Tax: $722.70 (FV) $651,612 or $7.63 per square foot of site area. Inspection, public records and file data. 87105-1 (RAT) Site is located within the Carlsbad Research Ce!iter, near Palomar Airport in South Carlsbad. Surrounding land usage is a developing office/RbD park. No convenient freeway access or visibility. A 38,000 square foot headquarters office building was subsequently constructed. LEE C. JOHNSON COMPANY 43 '. MARKET DATA ITEM NO. 8 ASSESSMENT PARCEL NO. THOMAS BROS. c- LOCATION LEGAL DESCRIPTION - SIZE AND SHAPE - TOPOGRAPHY STREET IMPROVEMENTS c c UTILITIES ZONING 212-062-09 Page 19, F-1 Southern terminus of La Place Court in the Carlsbad Reseach Center, Carlsbad. Portion of Lots F and G, Rancho Agua Hedionda, Map No. 823, City of Carlsbad. Rectangular-shaped interior parcel containing 2.94 acres. Level, at street grade. La Place Court is a cul-de-sac paved including curbs. All customary municipal utilities are available to the site. City of Carlsbad; C-M, Heavy Commercial - Limited Industrial. GRANTOR Woodhaven Developers, Inc. GRANTEE Radnor/Carlsbad Partnership TRANSACTION PRICE Deed Dated: February 21, 1986 Recorded : April 18, 1986 Instrument No: 150367 Transfer Tax: $1,166 (FV) $1,060,000 or $8.28 per square 'foot of site area. SOURCE Inspection, public records and 'file data. FILE NO. 87105-1 (RAT) COMMENTS Site is located within the Carlsbad Research Center, near Palomar Airport in south Carlsbad. Surrounding land usage is a developing office/R&D park. No convenient freeway access or visibility. A 62,500+ square foot office building is planned for the site. &A- a / LEE C JOHNSON COMPANY c 45 ASSESSMENT PARCEL NO. THOMAS BROS. LOCATION LEGAL DESCRIPTION SIZE AND SHAPE TOPOGRAPHY STREET IMPROVEMENTS UTILITIES ZONING GRANTOR GRANTEE TRANSACTION PRICE SOURCE FILE NO. COMMENTS MARKET DATA ITEM NO. 9 213-070-06 Page 19, F-2 Northwest corner Corte de La Pina at Corte Del Cedro, immediately south of Palomar Airport Road, Carlsbad. Lots 6 of Carlsbad Tract No. 79-14, Map No. 9744, City of Carlsbad. Rectangular-shaped corner parcel containing 1.16 acres. Generally level, above street grade. Each street frontage is paved. All customary municipal utilities are available to the site. City of Carlsbad; PM, Planned Industrial. Mitsui Fudosan Jay M. and Louise Kholos Deed Dated: February 22, 1985 Recorded: March 7, 1985 Instrument No: 75587 Transfer Tax: $445.50 (FV) $405,000 or $8.02 per square foot of site area. Inspection, public records and file data. 87105-1 (RAT) Located within the Palomar Airport Business Park, a developing light industrial and office area. No freeway visibility and neither street frontage is a main thoroughfare. LEE C. JOHNSON COMPANY 46 LEE C. JOHNSON COMPANY CORRELATION AND FINAL VALUE ESTIMATE 47 The property which is the subject of this report is located within the southwest quadrant of Pine Avenue and Harding Street, west of Interstate 5 and immediately south of the downtown business, district within the City of Carlsbad. Surrounding land usages include school facilities, day school, church, apartments and older single-family residential development in the $60,000-$90,000+ price range generally. Street system in the immediate vicinity is the traditional grid-pattern, publicly maintained, in good condition generally. All customary municipal utilities are also available and sufficient for additional development. Interstate 5 is located immediately east with reasonably convenient access provided at Elm Avenue. Zoning/General Plan designation in the immediate vicinity is generally High Density Residential allowing 15-23 dwelling units per acre. The subject site is located just outside and south of the Village Area Redevelopment Plan approved April, 1981. Sub Areas 4 and 7 (see enclosed project map) are located nearest the subject site and proposed improvements within these areas will include neighborhood commercial uses, auto-related services, vocational educational centers, residential and service commercial/office uses. The City of Carlsbad has been experiencing a substantial increase in population and development activity over the past few years. Citizens of Carlsbad are very concerned about the City's rapid growth and desire a lower rate of development in order to permit effective advanced planning and establishment of adequate municipal services such as streets, water, sewage disposal and other customary services. As such, Carlsbad voters passed a growth initiative in November 1986 in the form of Proposition E. A copy of this proposition is included in the Addenda section of this report. Physical characteristics of the site include a level, 3.02-acre parcel at grade with each street frontage. The site appears totally usable, drainage appears adequate and unusual fill or grading should not be required upon redevelopment. Each street frontage is paved, publicly maintained in good condition. Municipal utilities are available with water and sewer mains located in Harding Street and Pine Avenue. A paved alley parallels the westerly property boundary. Current zoning designation is Open Space and General Plan is E, or Elementary School. As shown by enclosed photographs and graphics, the subject parcel is part of a larger 10.51-acre tract owned by Carlsbad Unified School District. The site is occupied by substantial older public improvements utilized as an education center. The City and Carlsbad Unified School District are negotiating City LEE C. JOHNSON COMPANY c L c 48 acquisition of the site to facilitate design and construction of a joint City of Carlsbad Senior Citizens Center and District administrative office complex, Per client instruction, value conclusion assumes a vacant, legal and separate 3.02-acre parcel available for development consistent with an office use. Within the City of Carlsbad, this would require a commercial zone. As such, the appraisers have not considered the traditional concept of highest and best use in arriving at a value conclusion for this property. In valuing the subject site, utilizing a Direct Sales Analysis Method of valuation, the appraisers have followed a path of investigation and methodology as described in the Valuation section. Market data items submitted within this report were considered most comparable for valuation purposes and should not be considered as a complete list of all market activity within our search area. Additional data has been retained in a work file and was useful in refining the appraisers judgment, Recent sale involving a directly comparable site was unavailable for analysis. Enough reasonably comparable data was available, after adjustment, to arrive at a supportable value conclusion. Due to a lack of recent recordings in the immediate vicinity, focus of our sales search included the entire city. Adjustments to market data were considered for time, location, zoning, size/utility and other pertinent value characteristics. On an unadjusted basis, market data available suggests a commercial land value range within Carlsbad of $7.63 to $21.43 per square foot, Price-per-square-foot is the unit of comparison utilized by the market in valuing/marketing commercial sites. This unit of comparison is also used by the appraiser in the adjustment process. Comments about each comparable transaction and its comparison to the subject property follows. Market Data Item No. 1 ($12 per square foot) is the October 1984 purchase of a 7,000 square foot interior parcel located along Roosevelt Street, near Walnut, immediately west of the subject. This site is located in the redevelopment area with a commercial land use designation. An older commercial structure was removed in favor of an auto-service facility currently under construction. By comparison to the subject, this parcel is not directly comparable being substantially smaller, different use and located within the redevelopment area. However, it is a general reflection of commercial land values in the immediate vicinity. It is an older sale, requiring an upward time adjustment, Smaller parcels generally reflect a higher per-square-foot indication than a much larger parcel. Suggests a value conclusion for the subject site in the $11 per square foot range to be reasonable. Market Data Item No. 2 ($11.43 per square foot) is the September 1984 purchase of a 10,500 square foot interior parcel located along Roosevelt Street near Walnut in the LEE C. JOHNSON COMPANY 49 redevelopment area. This site is also designated for a commercial use and is vacant at the present time. By comparison to the subject, it is substantially smaller with a different highest and best use potential but also is a general indicator of commercial land values in the immediate vicinity after a time adjustment. Market Data Item No. 3 ($16.43 per square foot) is also located along Roosevelt Street, immediately south of Elm Avenue. This 7,000 square foot site sold in October 1984 and a restaurant was subsequently completed. It is located within the redevelopment area with a commercial land use designation. This transaction suggests that land values increase with a closer proximity to Elm Avenue and the downtown commercial core. By comparison to the subject, this site is substantially smaller, in closer proximity to the commercial core and a different use. An upward time adjustment is indicated to reflect the older date of sale. Overall, considered superior in terms of location, a downward unit value adjustment is indicated for size and suggests a lower unit value conclusion for the subject to be appropriate, Market Data Item Nos. 4A and 4B ($20.95 per square foot combined) involve a 21,000 square foot corner parcel located at Grand Avenue and Jefferson Street in the downtown commercial core. For the purpose of analysis, these transactions were considered together as they were acquired by a common purchaser and will be developed jointly with a professional office building, Acquisition date was November 1984 and October 1985. By comparison to the subject, considered superior in terms of location, suggesting a lower per-unit value conclusion for the subject to be reasonable. An upward time adjustment is indicated. Market Data Item No. 5 ($12.92 per square foot) is the November 1985 purchase of a 1.51-acre parcel located along the Interstate 5 corridor on Avenida Encinas, south of the downtown commercial core. This site has good freeway visibility/access and is located in a developing area where motels and a Raiser medical facility was recently completed. An upward time adjustment is indicated. Considered superior to the subject in terms of location and highest and best use potential, suggesting a lower unit-value conclusion to be reasonable. Market Data Item No. 6 ($14.14 per square foot) is the December 1984 purchase of a 6.05-acre parcel located on Palomar Airport Road at Interstate 5. A large office complex was subsequently completed and additional space is planned. This is a developing area of south Carlsbad removed from the downtown business district. The site provides good freeway LEE C. JOHNSON COMPANY 50 visibility and access. Zoning is industrial. By comparison to the subject, considered superior in terms of location and highest and best use potential,-suggesting a lower unit-value conclusion to be reasonable. An upward time adjustment is indicated. Market Data Item No. 7 ($7.63 per square foot) is the September 1985 purchase of a 1.96-acre parcel located in the Carlsbad Research Center adjacent north of Palomar Airport. This is a developing office/RbD park and a headquarters office building was subsequently constructed on this site. Zoning is Heavy Commercial-Light Industrial. By comparison to the subject, this property is considered inferior due primarily to a less centralized location. Suggests a higher unit value conclusion to be reasonable. Market Data Item No. 8 ($8.28 per square foot) is the February 1986 purchase of a 2.94-acre parcel also located within the Carlsbad Research Center near Palomar Airport. An office building is planned for the site and zoning is Heavy Commercial-Limited Industrial. By comparison to the subject, considered inferior due primarily to less centralized location suggesting a higher unit value conclusion to be reasonable. Market Data Item No. 9 ($8.02 per square foot) is the February 1985 purchase of a 1.16-acre parcel located in the Palomar Airport Business Park adjacent south of Palomar Airport. This is also a recently developing office/industrial area. By comparison to the subject, this site is considered inferior due to location. An upward time adjustment is indicated. On an adjusted basis, market data available suggests a unit value conclusion for the subject site of $10 to $12 per square foot to be reasonable. There have been few recorded commercial land transactions within the downtown area of Carlsbad over the past few years. Development activity within this city has been substantial in all market segments including commercial, industrial and residential. This activity is occurring primarily in the south Carlsbad area around Palomar Airport and Interstate 5 corridor. Downtown redevelopment has been a positive influence on the commercial core and continued progress is anticipated. There is a demand within the City for well-located office sites. The subject neighborhood is generally fully developed and new construction would usually require removal of existing improvements. Positive value characteristics of the subject site include proximity to the downtown commercial core and convenient access to Interstate 5 and civic center. The site is level and should not require any unusual grading prior to redevelopment. Municipal utilities are available and adequate to serve a new project. LEE C. JOHNSON COMPANY 51 After consideration and analysis of available market information, we believe a reasonable value conclusion for the subject site to be $1,447,000 or $11 per square foot of site area calculated as follows: 131,551 s.f. @ $ll/s.f. = $1,447,061 Rounded to...........$1,447,000 Again, it is important that users of this report, are aware the subject site is currently part of a larger 10.51-acre parcel owned by Carlsbad Unified School District. Current zoning designation is Open Space. Per client instruction, value conclusion assumes a legal and separate 3.02-acre parcel, available for development assuming a commercial office zoning and use. As such, the traditional concept of highest and best use has not been utilized by the appraisers in the valuation of this site. Existing improvements have been neither inventoried nor valued. Our certification follows. LEE C. JOHNSON COMPANY 52 CERTIFICATE OF APPRAISAL ' The undersigned do hereby certify as follows: We have inspected the property. We have no inter.est, present or contemplated, in the real estate that is the subject of this report and we have no personal interest or bias with respect to the parties involved. That our fee for the investigation and the preparation of this report is not in any sense contingent upon the amount of the value herein reported, nor contingent upon anything other than the delivery of this report. To the best of our knowledge and belief, the statements of fact contained in this appraisal report, upon which the analyses, opinions and conclusions expressed herein are based, are true and correct. The analyses, opinions, and conclusions contained in this report are limited only by the reported assumptions and limiting conditions (imposed by the terms of our assignment or by the undersigned) and are our personal, unbiased professional analyses, opinions, and conclusions. This appraisal report is in conformity with, and subject to, the requirements of the Code of Professional Ethics and Standards of Professional Practice of the American Institute of Real Estate Appraisers of the National Association of Realtors. The use of this report is subject to the requirements of the American Institute of Real Estate Appraisers relating to review by its duly authorized representatives. The Institute conducts a voluntary program of continuing education for its designated members. MAIs and RMs who meet the minimum standards of this program are awarded periodic educational certification. Lee C. Johnson is certified under this program. No one other than the undersigned prepared the analyses, conclusions and opinions that are set forth in this appraisal report. The real estate which is the subject of this appraisal was valued as of March 3, 1987. LEE C. JOHNSON COMPANY c 53 ADDENDA LEE C. JOHNSON COMPANY