HomeMy WebLinkAbout3338; Agua Hedionda & Calavera Creek Dredging; Robertson Ranch 197.75 Acre Land ECR&Tam; 2000-04-27APPRAISAL OF A
197.75 ACRE HOLDING OF RAW LAND LOCATED
North of El Camino Real and East of Tamarack Avenue
Carlsbad, California 92008
Owners: Virginia Robertson, et al
Brian and Gary Robertson
«"« DATE OF VALUE
** 27 April 2000
" DATE OF REPORT
« 10 May 2000
- APPRAISED FOR
City of Carlsbad
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APPRAISED BY
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Ted G. Hendrickson, MAI
"5 Edward A. Beaver
• Mike Barajas
_ Hendrickson Appraisal Company, Inc.
* 10992 San Diego Mission Road, Suite 203
_ San Diego, California 92108
MEMORANDUM
To: David Hauser, Deputy City Engineer
Mark Steyaert, Park Development Coordinator
From: Dick Jacobs, Consultant Project Manager
Subj: Robertson Ranch Property Appraisal Report
Rancho Carlsbad Cannel and Detention Basin Project
Date: June 22, 2000
Please find enclosed the final appraisal report for the Robertson Ranch property as prepared by
Hendrickson Appraisal Co., Inc. A total of three (3) final reports have been distributed as follows:
David Hauser - One (1) copy
Mark Steyaert - One (1) copy
Dick Jacobs - One (1) copy
Copy: Public Works Director-Memo Only
ENDRICKSON
APPRAISAL COMPANY, INC.
Real Estate Appraisers • Consultants
10992 San Diego Mission Road • Suite 203 • San Diego, California 92108 • (619) 282-0800 Ted G. Hendrickson, MAI, SRPA
15 May 2000
Mr. David Hauser
Deputy City Engineer
City of Carlsbad
1635 Faraday Avenue
Carlsbad, CA 92008
Reference: Two holdings of unentitled vacant land in the northeastern section of the city of
Carlsbad, commonly referred to as Robertson Ranch.
OurFileNo.2K106
Dear Mr. Hauser,
At your request and authorization, the above referenced properties and their environs have been
inspected and analyzed for the purpose of formulating opinions of market value under various
scenarios for each subject property. It is our understanding that the city of Carlsbad anticipates
acquiring portions of these properties to facilitate construction of a flood control project. The
appraisal process and reporting is consistent with California eminent domain law.
This appraisal report describes the facts and reasoning upon which our opinions are based. The
analysis and final report has been prepared in compliance with, and subject to the requirements of the
Uniform Standards of Professional Appraisal Practice (USPAP) as published by the Appraisal
Foundation and adopted by the Appraisal Institute. The report contains a description of the subject
properties as well as a discussion of the reasoning that has resulted in our opinions of value.
Based upon our investigations and analysis, and by virtue of our experience as a real estate analysts
and appraisers, it is our opinion that the market values under various valuation scenarios of the
subject properties, and the values of the parts being acquired, as of 27 April 2000, were as indicated
in the table on the following page
This appraisal is subject to certain additional assumptions and limiting conditions that are made a part
of this report. Acceptance and use of this report by the client or any other party constitutes
acceptance of these assumptions and limiting conditions.
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VALUATION SCENARIOS:
The appraisers were asked to consider several valuation scenarios for the subject properties which are
described briefly in the following paragraphs.
Scenario 1 - This scenario involves acquisition by the city of easement rights to several areas of the subject
property. The areas are identified as follows.
A. Innundation Easement for Detention Basin - Easement rights to an 11.86 acre
area of the subject property for use in conjunction with the detention basin property.
B. Storm Drain Easement - Easement rights to a 0.05 acre area for a storm drain
between the detention basin and the eventual right of way of Cannon Road and
College Boulevard.
C. Temporary Construction and Access Easements - Temporary easement rights
to two areas of the property, one to provide access from El Camino Real to the
• project area and the second to eventually facilitate construction of College
Boulevard. The access easement is 1.93 acres and the construction easement is 2.24
acres.
D. Mitigation Easement - Easement rights to a 0.70 acre area being acquired as
mitigation for impacts expected to result from future construction of Cannon Road
and College Boulevard.
Scenario 2 - This scenario involves acquisition in fee of all of the area north of the proposed routing of
College Boulevard, a total of approximately 34.35 acres. This area includes the areas identified above as
the Innundation Easement and the Mitigation Easement, but does not include the Storm Drain Easement
or either of the Temporary Easements. If selected by the city, this scenario would replace Scenario 1 above.
Scenario 3 - This scenario involves the additional acquisition in fee of a ten acre area for use as a public
park. No specific area has yet been identified for this acquisition, however, it is understood that it would
come from the area of the subject south of the proposed routing of College Boulevard and north of the
proposed routing of Cannon Road. This is the prime developable area of the site. This scenario could be
pursued in conjunction with either Scenario 1 or Scenario 2, and both possibilities were considered.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
MARKET VALUES:
Value of the Whole
Value of the Part Taken
Severance Damages
Benefits
Net Severance Damages
Value of Temp Easements
Just Compensation
Robertson Family Trust
Scenario 1
$25,710,000
$1,480,000
$0
$0
$0
$75,000
$1,560,000
Scenario 2
$25,710,000
$4,470,000
$0
$0
$0
$75,000
$4,550,000
Scenario 3+1
$25,710,000
$3,980,000
$0
$0
$0
$75,000
$4,060,000
Scenario 3+2
$25,710,000
$6,970,000
$0
$0
$0
$57,000
$7,050,000
Robertson, G & B
$430,000
N/A
N/A
N/A
N/A
N/A
$430,000
Thank you for this opportunity to be of service. Please call should any questions arise or if we may be of
any further assistance.
Respectfully submitted,
Ted G.-Hendrickson, MAI
California Certified General Appraiser
Certificate No: AG004974
:e Barajas
California Certified General Appraiser
Certificate No: AG018410
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
TABLE OF CONTENTS
TITLE PAGE i
LETTER OF TRANSMTTTAL ii
TABLE OF CONTENTS v
SUMMARY OF SALIENT FACTS AND CONCLUSIONS vi
ASSUMPTIONS AND LIMITING CONDITIONS viii
CERTIFICATION x
IDENTIFICATION OF THE PROPERTY 1
PURPOSE OF THE APPRAISAL 1
DEFINITION OF MARKET VALUE 1
INTENDED USERS OF THE REPORT 2
EFFECTIVE DATE OF APPRAISAL 2
SCOPE OF THE REPORT 3
AREAMAP 5
NEIGHBORHOOD MAP 6
NEIGHBORHOOD DESCRIPTION 7
PROJECT DESCRIPTION 8
SUBJECT PHOTOGRAPHS-VIRGINIA ROBERTSON, ETAL 9
DESCRIPTION OF THE SUBJECT PROPERTY - VIRGINIA ROBERTSON, ET AL 13
PLAT MAP-VIRGINIA ROBERTSON, ETAL 14
FLOOD MAP-VIRGINIA ROBERTSON, ETAL 17
ACQUISITION MAP 20
DESCRIPTION OF THE PART TO BE ACQUIRED 21
DESCRIPTION OF THE REMAINDER 22
CONSTRUCTION IN THE MANNER PROPOSED 23
VALUATION ANALYSIS 24
HIGHEST AND BEST USE 24
GENERAL VALUATION METHODOLOGY 26
SPECIFIC VALUATION METHODOLOGY 27
VALUE OF THE WHOLE IN THE BEFORE CONDITION 29
VALUE OF THE PART BEING ACQUIRED 36
VALUE OF THE REMAINDER AS PART OF THE WHOLE 39
VALUE OF THE REMAINDER IN THE AFTER CONDITION 40
SEVERANCE DAMAGES 42
BENEFITS 42
VALUATION - TEMPORARY ACCESS AND CONSTRUCTION EASEMENTS 43
JUST COMPENSATION 45
SUBJECT PHOTOGRAPHS-BRIAN AND GARY ROBERTSON 48
DESCRIPTION OF THE SUBJECT PROPERTY, BRIAN AND GARY ROBERTSON 49
PLAT MAP-BRIAN AND GARY ROBERTSON 50
FLOOD MAP-BRIAN AND GARY ROBERTSON 53
VALUATION ANALYSIS 55
HIGHEST AND BEST USE 55
SPECIFIC VALUATION METHODOLOGY 57
VALUE OF THE SUBJECT IF JOINED TO THE ADJACENT PROPERTY 58
VALUE OF SUBJECT BASED ON DEVELOPABLE AREA 59
RECONCILIATION OF SUBJECT VALUE 60
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
LOCATION:
The subjects of this appraisal are located in the northeastern section of the city of Carlsbad. They are on
the north side of El Camino Real, east of the intersection with Tamarack Avenue.
OWNERS OF RECORD:
APN 168-050-17 - Virginia Robertson, et al.
APN 168-040-30 - Gary and Brian Robertson.
DATE OF VALUE:
27 April 2000
SITE SIZE AND SHAPE:
San Diego County Assessor's data indicates the property sizes as follows.
APN 168-050-17 - 197.75 acres.
APN 168-040-30 - 6.67 acres.
Both are irregular shaped parcels.
IMPROVEMENTS:
Both properties are holdings of vacant, raw, unentitled land.
ZONING:
L-C, Limited Control, city of Carlsbad.
HIGHEST AND BEST USE:
As if vacant: Residential subdivision.
As improved: N/A
VALUATION SCENARIOS:
The appraisers were asked to consider several valuation scenarios for the subject properties which are
described briefly in the following paragraphs.
Scenario 1 - This scenario involves acquisition by the city of easement rights to several areas of the subject
property. The areas are identified as follows.
A. Innundation Easement for Detention Basin - Easement rights to an 11.86 acre
area of the subject property for use in conjunction with the detention basin property.
B. Storm Drain Easement - Easement rights to a 0.05 acre area for a storm drain
between the detention basin and the eventual right of way of Cannon Road and
College Boulevard.
C. Temporary Construction and Access Easements - Temporary easement rights
to two areas of the property, one to provide access from El Camino Real to the
project area and the second to eventually facilitate construction of College
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
Boulevard. The access easement is 1.93 acres and the construction easement is 2.24
acres.
D. Mitigation Easement - Easement rights to a 0.70 acre area being acquired as
mitigation for impacts expected to result from future construction of Cannon Road
and College Boulevard.
Scenario 2 - This scenario involves acquisition in fee of all of the area north of the proposed routing of
College Boulevard, a total of approximately 34.35 acres. This area includes the areas identified above as
the Innundation Easement and the Mitigation Easement, but does not include the Storm Drain Easement
or either of the Temporary Easements. If selected by the city, this scenario would replace Scenario 1 above.
Scenario 3 - This scenario involves the additional acquisition in fee of a ten acre area for use as a public
park. No specific area has yet been identified for this acquisition, however, it is understood that it would
come from the area of the subject south of the proposed routing of College Boulevard and north of the
proposed routing of Cannon Road. This is the prime developable area of the site. This scenario could be
pursued in conjunction with either Scenario 1 or Scenario 2, and both possibilities were considered.
MARKET VALUES:
Value of the Whole
Value of the Part Taken
Severance Damages
Benefits
Net Severance Damages
Value of Temp Easements
Just Compensation
Robertson Family Trust
Scenario 1
$25,710,000
$1,480,000
$0
$0
$0
$75,000
$1,560,000
Scenario 2
$25,710,000
$4,470,000
$0
$0
$0
$75,000
$4,550,000
Scenario 3+1
$25,710,000
$3,980,000
$0
$0
$0
$75,000
$4,060,000
Scenario 3+2
$25,710,000
$6,970,000
$0
$0
$0
$57,000
$7,050,000
Robertson, G & B
$430,000
N/A
N/A
N/A
N/A
N/A
$430,000
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report is prepared subject to the following conditions and stipulations:
1. The legal descriptions furnished in the Preliminary Title Reports pertaining to the properties are
assumed to be correct.
2. No responsibility is assumed for matters legal in character, nor do we render an opinion as to title,
which is assumed to be held in fee simple interest as of the date of valuation unless otherwise stated.
3. It is assumed that the properties are readily marketable and free of all liens and encumbrances except
any specifically discussed in this report.
4. Information, estimates, and opinions furnished by others and contained in this report are assumed
to be true, correct, and reliable. A reasonable effort has been made to verify such information;
however, no responsibility for its accuracy is assumed by the appraisers. Photographs, plats, and
maps-furnished in this report are intended to assist the reader in visualizing the property.
5. No soils or geotechnical investigation reports were provided by the client. As an assumption of this
analysis, it is presumed that there are no hidden or unapparent conditions of the properties, subsoil,
or structures which would render them more or less valuable than otherwise comparable properties.
No responsibility is assumed for such conditions or for engineering which might be required to
discover such factors. The appraisers are not qualified to analyze said conditions, and urge the client
to retain an expert in this field. No visible evidence of soils subsidence was observed during our
inspection of the properties.
6. No opinion is rendered as to the value of sub-surface gas, oil or mineral rights, or whether the
properties are subject to surface entry for the exploration or removal of such materials, except as
is expressly stated in this appraisal report.
7. All estimates of value are presented as the appraisers' considered opinion, based upon the facts and
data set forth in this report. The appraisers assume no responsibility for changes in market
conditions nor the inability of the owner to locate purchasers within a reasonable time at the
appraised market value.
8. Testimony or attendance in court or other hearing by reason of this appraisal, with reference to the
properties in question, shall not be required unless arrangements have previously been made with
the client, relative to such additional employment. Additional pre-trial and court testimony work is
beyond the scope of this appraisal assignment and will be compensated for at the appraiser's
minimum standard hourly rate.
9. By acceptance and use of this report, the user agrees that any liability for error, omissions or
judgement of the appraisers is limited to the amount of the fee charged for the appraisal. Anyone
acting in reliance upon the opinions, judgements, conclusions or data contained herein, who has the
potential for monetary loss due to the reliance thereon, is advised to secure an independent review
and verification of all such conclusions and/or facts. The user agrees to notify the appraiser, prior
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
to any irrevocable investment decision, of any error which could reasonably be determined from a
thorough and knowledgeable review.
10. The date of value to which the opinions expressed in this report apply is set forth in the letter of
transmittal. The appraisers assume no responsibility for economic or physical factors occurring at
some later date which may affect the opinions herein stated. The appraisers reserve the right to
make such adjustments to the analyzes, opinions and conclusions set forth in this report as may be
required by consideration of additional data or more reliable data that may become available.
11. Any projections included in this report are used to assist in the valuation process and are based on
current market conditions, and anticipated short term supply and demand factors. These projections
are subject to changes in future conditions that cannot be accurately predicted by the appraisers and
could affect the future income or value projections.
12. The possession of this report, or a copy thereof, does not carry with it the right of publication, nor
may it be used for any purpose other than described in this report, without the previous written
consent of Hendrickson Appraisal Company, Incorporated.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
CERTIFICATION
I. The undersigned certify that, except as otherwise noted in this appraisal report:
(1) We have made a personal inspection of the subject properties and each of the comparable sale properties.
(2) We have no present or contemplated future interest in the real estate that is the subject of this appraisal
report, nor do we have any personal interest or bias with respect to the subject matter of this appraisal report
or the parties involved.
(3) Our compensation for this appraisal 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 conclusion, the attainment of a stipulated
result, or the occurrence of a subsequent event.
(4) To the best of our knowledge, the statements of fact contained in this appraisal report, upon which the
analyzes, opinions, and conclusions expressed herein are based, are true and correct.
(5) This appraisal report sets forth all of the limiting conditions affecting the analyzes, opinions, and conclusions
contained in this appraisal report.
(6) This appraisal report has been prepared in conformity with and is subject to the requirements of the Code of
Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the
Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.
(7) All analyses, conclusions and opinions contained in this report are those of the undersigned.
(8) This appraisal has been prepared in conformity with appropriate California laws applicable to eminent
domain appraisals. To the best of our knowledge, no portion of the value assigned to these properties consists
of items which are non-compensable under the established law of the State of California. The property owners
were given an opportunity to inspect the properties with the appraisers.
(9) The Appraisal Institute conducts a mandatory program of continuing education for its designated members.
Members of the Appraisal Institute - MAI's, who meet the minimum standards of this program are awarded
periodic educational certification. Ted G. Hendrickson, MAI is currently certified under this program.
Additionally, all of the undersigned have received certification from the State of California as Certified
General Real Estate Appraisers.
(10) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representative.
II. Restriction Upon Disclosure and Use; The undersigned MAI appraiser is a Member of the Appraisal
Institute. The Bylaws and Regulations of the Institute require all Members to control the use and distribution
of each appraisal report signed by them. Therefore, the possession of this report, or a copy thereof, does not
carry with it the right of publication, nor may it be used for any purpose other than described in the report,
without the previous written consent of Hendrickson Appraisal Company, Inc.
Ted G. Hendrickson, MAI Mike Barajas /
California Certified General Appraiser California Certified General Appraiser
Certificate No: AG 004974 Certificate No. AG 018410
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
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roroENTIFICATION OF THE PROPERTY
The subjects of this appraisal are holdings of vacant, raw land which are located in the northeast portion
of the city of Carlsbad. They are situated on the north side of El Camino Real, east of its intersection with
Tamarack Avenue. They are approximately one mile east of the Agua Hedionda Lagoon and approximately
one mile north of Palomar Airport.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal assignment is to develop an opinion of the market values of the subject
properties under various valuation scenarios as of 27 April 2000.
DEFINITION OF MARKET VALUE
Fair market value as defined under California Eminent Domain Law and as referenced in the California
Code of Civil Procedure, Section 1263.320, is as follows:
"The fair market value of the property taken is 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
obliged to sell, and a buyer, being ready, willing, and able to buy but under 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."
Section 1263.330 states: The fair market value of the property taken shall not include any increase or
decrease in the value of the property that is attributable to any of the following:
(a) The project for which the property is taken.
(b) The eminent domain proceeding in which the property is taken.
(c) Any preliminary actions of the plaintiff relating to the taking of the property.
This appraisal is subject to the limiting conditions presented in this report. If it should be determined that
any of these assumptions and limiting conditions are not valid, the appraisers reserve the right to amend the
appraisal.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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m 1ST
PROPERTY RIGHTS APPRAISED
The estates appraised are the fee simple and easement interests in the subject properties, subject to any
covenants, conditions and restrictions of record.
DEFINITION OF PROPERTY RIGHTS APPRAISED
The following definitions are from The Dictionary of Real Estate, Third Edition, published by the Appraisal
Institute in 1993.
The fee simple estate is defined as:
"Absolute ownership unencumbered by any other interest or estate; subject only to the
limitations imposed by the governmental powers of taxation, eminent domain, police power
and e'scheat." For purposes of this report, this definition is expanded to include recorded
easements, and covenants, conditions and restrictions (CC&R's), if any exist.
An easement is defined as:
"An interest in real property that conveys use, but not ownership, of a portion of an owner's
property."
INTENDED USERS OF THE REPORT
This report is intended for the sole use of the City of Carlsbad to assist in making pre-condemnation offers
to acquire portions of the subject properties in conjunction with completion of a flood control project in
the northeastern portion of the city.
EFFECTIVE DATE OF APPRAISAL
The effective date of the appraisal is 27 April 2000, one of the dates the properties were inspected.
REPORT FORMAT AND PROCESS
This appraisal report presents the description and valuation analysis of two holdings of vacant, raw,
unentitled land located in northeastern Carlsbad. The sizes of the properties were extracted from San Diego
County Assessor's data and the sizes of the acquisition areas were extracted from right of way maps
provided by the city of Carlsbad and information provided by Rick Engineering. Descriptions of the project
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
are based on conversations with representatives of Rick Engineering, the firm contracted to provide
engineering services for the flood control project. Design drawings were not made available to the
appraisers.
OWNERSHIP
APN 168-050-17
Title to the subject property is vested in Virginia Robertson, as to an undivided one-half interest; Virginia
J. Robertson, Trustee under declaration of Trust dated October 8, 1976, as to an undivided 7 percent
interest; Virginia K. Robertson as Trustee of the Elsie M. Kelly Irrevocable Trust dated June 19, 1989 as
to an undivided 43 percent interest.
APN 168-040-30
Brian K. Robertson and Gary W. Robertson, as tenants in common, each as to an undivided 1A interest.
SCOPE OF THE REPORT
1. The analysis included in this assignment is intended to be an "appraisal" as defined in the Standards
of Professional Appraisal Practice of the Appraisal Institute, with the results of the analysis,
opinions, and conclusions being that of a disinterested third party. The appraisal process is
considered to be fully complete, while the reporting is contained in an expanded summary appraisal
report format that is in full compliance with Standard Rule 2-2(b) of the Uniform Standards of
Professional Appraisal Practice of the Appraisal Foundation.
2. All appropriate data deemed pertinent to the solution of the appraisal problem has been collected,
confirmed, and reported in conformity with the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation. These data include: neighborhood and commercial district
information, zoning and development information, subject property data, highest and best use data
and research, and all market data used in the analysis of the appraisal of the subject property.
3. The subject properties were initially inspected from their periphery in February 2000 by Ted
Hendrickson, Mike Barajas and Ed Beaver, with subsequent inspections also conducted from the
boundaries of the property. The appraisers met with the property owners at the city of Carlsbad in
late March and scheduled a formal inspection of the site on 5 April 2000. The owners planned to
accompany us on our inspection. That inspection was cancelled by the Robertson's attorney,
however, it was rescheduled for 27 April. On that day we met again with the property owners and
completed our formal inspection of the property. We met with them at their home on the property,
but they did not tour the property with us.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers-Consultants
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4. In order to develop an opinion of the value of the whole of the subject properties, a study was
conducted to find recent sales of the most similar vacant, raw land parcels in the immediate subject
area. Sales meeting the specified criteria were researched, confirmed and analyzed.
5. Each comparable sale property was inspected, and the buyer, and/or broker involved in the sale was
interviewed to confirm the salient information regarding the transaction. All of the assumptions
made throughout the report have been well supported by market evidence and/or discussions with
knowledgeable individuals within the area of concern.
6. This appraisal report is prepared in conformance and full compliance with the Uniform Standards
of Professional Appraisal Practice (USP AP), as published by the Appraisal Foundation and adopted
by the Appraisal Institute. It is intended throughout this appraisal process that this appraisal be
performed in such a manner that the results of the analysis, opinions, or conclusions are that of a
disinterested third party.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers Consultants
NEIGHBORHOOD MAP
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers Consultants
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NEIGHBORHOOD DESCRIPTION
The subject properties are located in the northeastern section of the city of Carlsbad, an area into which
residential development is currently expanding. Carlsbad is a coastal north San Diego County community,
situated about 35 miles north of downtown San Diego. The primary access to the area is via Interstate 5,
approximately two miles west of the subject site. The area features a variety of residential development
including both single family and multi family projects. Immediately to the southeast of the subject is a mobile
home park. The community has adequate access to 1-5 and the rest of the freeway system, and as a result,
adequate access to other areas of the county, although commutes during the morning and evening rush hour
periods are generally difficult due to high traffic volumes. The neighborhood boundaries are generally El
Camino Real to the west and south and the Oceanside city line to the north and east. Palomar Airport with
its associated industrial development are approximately a mile to the south of the subject.
According to demographic data available from the city of Carlsbad and the San Diego Association of
Governments (SANDAG), as of 1 January 1999, the latest date for which figures are available, the
population of Carlsbad was 77,550, or about 2.7% of the county as a whole. The population of Carlsbad
has increased approximately 23% since 1990, a rate which is significantly higher than the San Diego region
as a whole which had a population increase of approximately 14% during the same time frame. The increase
is higher in the north county communities because they are among a diminishing number of areas which still
have residential land available for development. The median household income of residents of Carlsbad is
approximately $56,400, significantly higher than the median of $43,600 for the San Diego region as a
whole. The median age in Carlsbad is 38.6 years, higher than the 33.3 year median age for the San Diego
region as a whole, suggesting that Carlsbad is an area popular with older families including retirees.
The residential housing market in Carlsbad has shown dramatic improvement over the past two years or
more. Review of sales reported for April 2000 revealed 63 sales with a median selling price of $380,000.
Ayear ago, in April 1999, there were 77 sales with a median selling price of $359,000, and two years ago,
in April 1998, there were 74 sales with a median selling price of $279,900. The current median price
indicates a 5.9% increase over one year ago and a very large 35.8% increase over two years ago. There
comes a point at which home prices begin to level off because only a very small percentage of the
population can afford to buy. It may well be that we are approaching that point, and that price increases in
the future will be more modest. Even with a median selling price well above a third of a million dollars, the
63 homes that sold in April 2000 were on the market for an average of only 35 days. The current market
is very good, and any offering of good quality homes, so long as they are not absurdly priced, can
reasonably be expected to sell quickly.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Carlsbad is a popular community in a good coastal location. It has good access to the freeway system, is
close to north county employment centers, recreational activities and shopping and other commercial
conveniences.
PROJECT DESCRIPTION
The primary project for which the acquisitions are being made is a flood control project affecting the
Calavera Creek area in northeastern Carlsbad. The portion of the overall project that affects the larger of
the subject properties (Virginia Robertson, et al) is a detention basin designed to detain excess water from
Calavera Creek during the rainy season, and a storm drain culvert to be constructed in an area which is
expected to eventually be under the proposed intersection of Cannon Road and College Boulevard. This
future intersection is planned for the vicinity of the southeast corner of the larger subject property and the
detention basin is to be constructed in the future north quadrant of that intersection. There are also
temporary access and construction easements which will facilitate construction of the project. The
acquisitions for the flood control project only directly affect the larger of the two subject parcels.
Due to the possibility that the acquisitions may isolate the smaller subject parcel (Gary and Brian
Robertson), the client has requested that we also develop an opinion of the value of that parcel for possible
acquisition as mitigation for possible environmental impacts of future projects including the eventual
extensions of Cannon Road and College Boulevard.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
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Robertson Trust property (APN 168-050-17) looking toward the west and northwest. Also visible are an old farmhouse
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Robertson Trust property (APN 168-050-17) looking generally east from the west side of the property.
SUBJECT PHOTOGRAPHS - VIRGINIA ROBERTSON. ET AL
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Looking south toward detention basin and mitigation easement.
Calavera Creek and riparian area is to the left.
Looking northwest (north of detention basin) toward proposed park with soccer and baseball fields.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers-Consultants
F SUBJECT PHOTOGRAPHS - VIRGINIA ROBERTSON. ET AL
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Looking southwest along existing access road from the location of the proposed storm drain easement.
Looking generally north along paved access (Calavera Drive) to the property.
The pavement ends just beyond the frame.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
DESCRIPTION OF THE SUBJECT PROPERTY - VIRGINIA ROBERTSON. ET AL
LOCATION
The subject property consists of a large, approximately 197.75 acre, holding of vacant, unentitled land
located in the northeastern section of the city of Carlsbad. It is situated on the north side of El Camino Real
east of its intersection with Tamarack Avenue.
APN
168-050-17
OWNERSHIP
Title to the subject property is vested in Virginia Robertson, as to an undivided one-half interest; Virginia
J. Robertson, Trustee under declaration of Trust dated October 8, 1976, as to an undivided 7 percent
interest; Virginia K. Robertson as Trustee of the Elsie M. Kelly Irrevocable Trust dated June 19, 1989 as
to an undivided 43 percent interest.
LEGAL DESCRIPTION
The appraisers reviewed a Title Report prepared by Benefit Land Title Insurance Company dated 3
November 1999, which contains a legal description of the subject property. The legal description is long
and complex, and a photocopy is provided in the addendum.
REAL PROPERTY TAXES/ASSESSMENTS
Tax Rate Area 09162
Tax Rate 1.04940%
1990/2000 Taxes $48,389.14
Assessed Value - Land $4,300,000
Assessed Value - Imps N/A
Total Assessed Value $4,300,000
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
PLATMAP - VIRGINIA ROBERTSON. ET AL
HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers Consultants
SHAPE AND SIZE
San Diego County Assessor's data indicates that the subject property is approximately 197.75 acres in size.
It is irregular in shape. Please refer to the Plat Map on the facing page.
TOPOGRAPHY
The subject features a variety of topography ranging from relatively level areas to more rolling terrain with
some areas of relatively steep slopes on the northern portion.
BIOLOGICAL HABITAT/ENVIRONMENTAL CONSIDERATIONS
As with any Jarge holding of land in San Diego County, the subject property exhibits characteristics of
interest from an environmental standpoint, either as a result of direct impacts of development on the subject
site or as potential mitigation areas for project impacts in other areas off the subject site. The bulk of the
subject property is identified as either AG (Agricultural) or NNGL (Non-native grasslands), neither of
which is considered to be sensitive habitat. There are also small areas of DSCC (Diegan Coastal Sage
Scrub) and RW (Riparian woodland), both of which are identified as sensitive habitat. The riparian
woodland is located primarily along Calavera Creek and the coastal sage is in scattered pockets on the
hillsides. The riparian woodland is an area which is to be avoided by both the project for which the
acquisitions are being made and also any eventual development on the property. According to
environmental planners at the city of Carlsbad, California gnatcatchers have not been sighted in the coastal
sage on the property. Known populations of gnatcatchers are reportedly farther to the north. According to
Don Rideout of the Carlsbad Planning Department, if no gnatcatchers are on the property, mitigation at a
1:1 ratio would be required for loss of coastal sage. If gnatcatchers are present, the required mitigation
increases to 2:1. Under current guidelines, up to one third of the coastal sage on the property can be
destroyed during development, and mitigation for the loss would be elsewhere on the property. A proposed
city policy, which has the approval of the regulatory agencies and which is expected to be in place by July
2000, would permit a developer to pay an in lieu fee into an environmental fund rather than set aside on site
area as mitigation. The fee is expected to be $7,500 per acre of coastal sage destroyed.
IMPROVEMENTS
The subject property is vacant, raw land with no improvements.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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TTUTILITIES
All typical utilities are available in developed areas adjacent to the subject property.
DEVELOPMENT STATUS
The subject property is raw, unentitled, unimproved land. No mapping has yet been approved.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
FLOOD MAP - VIRGINIA ROBERTSON. ET AL
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers Consultants
fg
ATACCESS
The subject property is accessible from El Camino Real on which it has a small amount of frontage just wide
enough to accommodate an entrance to the property. Eventually, both Cannon Road and College Boulevard
will be extended across this property. A Bridge and Thoroughfare District is under consideration to
establish a fee to finance these roadways with participation from all benefitting properties that will develop
in the area. A developer who constructs these road segments as part of developing the property with a
subdivision would be reimbursed for the cost of building these two roads.
ZONING AND PLANNING
Conversations with Eric Munoz and other planners at the city of Carlsbad and review of a zoning map
provided by the city indicate that the subject property is in an area zoned L-C, Limited Control. The L-C
zone is intended to provide an interim zone for areas where planning for future land uses has not been
completed or plans of development have not been formalized. After proper planning or plan approval has
been completed, property in zone L-C maybe rezoned. The Carlsbad General Plan Land Use Map identifies
the area for RLM use, or low to medium density residential use with up to four dwelling units per acre.
TITLE REPORT
Review of the title report provided indicates that the property is encumbered with numerous easements for
a variety of purposes including utilities, drainage and public roads. Also noted are two unrecorded leases,
dated 1963 and 1985, and a "pending" court action filed by the city of Carlsbad in 1980 relating to eminent
domain easement acquisition. These types of encumbrances are considered common for properties such as
the subject and are typically dealt with as a normal part of the mapping and development process. They are
considered unlikely to limit development of the subject property to its Highest and Best Use.
EASEMENTS
The title report noted above includes as exceptions a total of 27 easements. These easements are for road,
public utility, drainage or pipeline purposes. Their locations are not specified in the title report, and the
appraisers have not been provided a right of way map identifying their locations. However, it is common
for large parcels such as the subject to be encumbered by numerous easements of this sort, and developers
routinely complete development of similarly encumbered properties. We have no reason to believe that their
existence will limit the development of the property to its Highest and Best Use.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers "Consultants
FLOOD ZONE
Review of FEMA Flood Insurance Rate Map 06073 C0768F, dated 19 June 1997, indicates that portions
of the subject property, generally along Calavera Creek which flows along the southerly and easterly
boundaries of the property are in flood zone AE, defined as areas for which base flood elevations have been
determined. Small portions of the flood zone AE area are noted to be in floodway. The rest of the property
is in white zone X, identified as outside the 500 year floodplain. The detention basin project for which
portions of the property are being acquired is expected to dramatically reduce the area of the property in
flood zone AE. Public funds have already been identified for the detention basin project, and were it not
completed by the city prior to development of the property, a future buyer/developer of the property would
be reimbursed for the costs associated with its construction. Portions of the property in the floodway may
not be developed with permanent structures. Portions in flood plain fringe may be developed once the area
has been raised to an elevation above the 100 year flood plain.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
0
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The appraisers have been requested to consider several acquisition scenarios in relation to the subject
property.
Scenario 1 - This scenario involves acquisition of easement rights encumbering several portions of the
property. The following paragraphs describe the various acquisition areas included in this scenario.
A. Innundation Easement for Detention Basin - Easement rights to the portion of the property
being acquired in conjunction with the detention basin project encumber an irregular shaped,
approximately 11.86 acre area in the easterly portion of the property adjacent to Calavera Creek.
It is a relatively low lying area, much of which is currently in flood zone (primarily flood plain fringe
area), to be used as an inundation area during heavy rain when the existing drainage channels are
incapable of containing the runoff. The city of Carlsbad intends to acquire this area as an easement
rather than acquiring the fee simple rights to the area.
B. Storm Drain Easement - This area involves easement rights for a storm drain culvert needed to
handle water temporarily detained in the detention basin. This is a very small area of approximately
0.05 acre. It is located near the southeast corner of the subject and extends between the south side
of the proposed alignment of Cannon Road and the southerly boundary of the property.
C. Temporary Access and Construction Easements - This acquisition involves temporary easement
rights to two areas of the site. One is for access to the project area and runs generally along the
entire southerly property boundary. It is approximately 1.93 acres in size. The other is a
construction easement which extends northwest from the southeast corner of the property along the
south side of the proposed alignment of College Boulevard. It is approximately 2.24 acres in size
and would be required for the construction of College Boulevard, but not the detention basin. No
information regarding the construction schedule was provided to the appraisers. For the purpose
of determining the value of these temporary encumbrances we have assumed that the easements will
commence on 1 July 2000 and remain in effect for a period of eighteen months.
D. Mitigation Easement - The final easement acquisition is an approximately 0.70 acre area being
acquired to mitigate for loss of environmentally sensitive area resulting from construction of the
berms which will contain excess runoff in the detention basin.
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^ I HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers-Consultants
*
fg
I Th<The following two scenarios are both the result of the desire of the city of Carlsbad to secure additional area
for parks. Under normal circumstances, the city would simply require a developer to set aside area for parks
as a condition of map approval for any proposed development. However, under the general plan
requirements, the city already has a sufficient number of parks in the area to accommodate existing and
future development. As a result, according to Mark Steyaert of the city of Carlsbad, the city cannot force
a developer to set aside any additional area for parks as a condition of development approval. If the city
wants additional park area, it must buy the land.
Scenario 2 - Under this scenario, the city of Carlsbad would purchase the entire portion of the subject
property which lies to the north of the proposed future alignment of College Boulevard. Information
provided by Rick Engineering indicates that this area includes the approximately 11.86 acre inundation
easement and the 0.70 mitigation easement areas noted above, plus an additional approximately 21.79 acres
of vacant land area- a total of approximately 34.35 acres. Under this scenario, the area is to be acquired
in fee and would be used for a combination of the flood control project described above and a public park.
The intended use of the park would be primarily for recreational athletics including several soccer and
baseball/Softball fields.
Scenario 3 - This scenario would most likely be pursued in conjunction with Scenario 1 discussed above
and would involve the acquisition, in fee, of an approximately 10 acre area in an unspecified location on the
south side of the proposed future alignment of College Boulevard. This additional acquisition area would
most likely be used for the public park noted in Scenario 2 above, although the possibility of acquiring both
areas was also mentioned.
DESCRIPTION OF THE REMAINDER
Scenario 1 - After the acquisition, since all of the acquisitions are in the form of easements, the property
will still be approximately 197.75 acres in size. Approximately 11.86 acres of the eastern portion of the
property will be encumbered with an inundation easement, approximately 0.05 acre will be encumbered with
a storm drain easement and 0.70 acres will be encumbered with a mitigation easement. The storm drain
easement will be in the vicinity of the southeast corner of the property. Once the project has been
completed, the temporary access and construction easements will no longer be required and those
encumbrances are expected to be removed from the property.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
It is our understanding that the approximately 11.86 acre size of the inundation easement is based on the
current design which also permits possible use of the area for recreational purposes by the city of Carlsbad.
It is also our understanding that the surface area of this easement could be reduced by increasing the depth
of the detention basin area, so long as a total of 49 acre feet of water can be detained in the basin. Thus a
developer could, within reasonable limits, minimize the size of this area by increasing its depth, with the
result that a greater portion of the site could be developed. Another result of the flood control project is
a significant reduction in the portion of the subject property which is in flood zone. Virtually all of the flood
zone south of the detention basin will be eliminated. The remainder of the subject would still have the
proposed extensions of Cannon Road and College Boulevard crossing the property. These roads are not
part of the current project, although their proposed locations appear to have been considered during its
design.
Scenario 2 - After the acquisition, the subject property will be a contiguous holding of vacant raw land
totaling approximately 163.4 acres in size. As under Scenario 1, the remaining parcel would still have the
proposed alignments of College Boulevard and Cannon Road, although under this scenario, both streets
would run generally along the edges of the parcel. The property will also still be encumbered by the
approximately 0.05 acre storm drain easement.
Scenario 3 - Under this scenario, the remainder will be as described under Scenario 1 above except that
the size of the remainder will be approximately 187.75 acres once the 10 acres for the park is deducted. As
noted previously, the location of this 10 acre acquisition area has not yet been specified except that it is
expected to be on the south side of the proposed eventual alignment of College Boulevard.
CONSTRUCTION IN THE MANNER PROPOSED
The appraisers have not been provided with design drawings showing the construction in the manner
proposed. Based on discussions with representatives of the city of Carlsbad and Rick Engineering, the
inundation easement area is to be a low lying area on the west side of Calavera Creek north of the proposed
alignment of College Boulevard. To contain water in the basin, berms are to be constructed along its
southern and eastern edges. The berm along the southern side will eventually form part of the grade
separation between the proposed alignment of College Boulevard and the detention basin, and the berm on
the eastern side will provide separation between the basin and Calavera Creek.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
VALUATION ANALYSIS
fflGHEST AND BEST USE
The first step in the valuation process is to determine the property's Highest and Best Use. When appraising
under California eminent domain law, the Highest and Best Use of the whole property, prior to the
proposed project, must be determined. The highest and best use of a property is very important as it
establishes the foundation on which real estate value is based for a given property type. As used in this
report, Highest and Best Use is defined as:
That reasonably probable and legal use of vacant land or an improved property, which is
physically possible, appropriately supported, financially feasible, and which results in the
highest land value.
The definition noted above was taken from the Appraisal Institute's Appraisal of Real Estate, 11* Edition.
There are two distinct analyses in the highest and best use process; the highest and best use analysis of the
site as if it were vacant, and the highest and best use analysis of the site as it is improved.
As if vacant, the highest and best use could be for immediate development of the property or holding for
future development. As improved, the highest and best use analysis considers the possibility of continuing
the current use, conversion to an alternative use or demolishing the existing improvements and constructing
another use considered to yield a higher return to the property.
The determination of the highest and best use of a property either improved or vacant, must consider the
following four criteria. Is the potential use: (1) legally permissible, (2) physically possible, (3) financially
feasible, and (4) maximally productive. These criteria should be considered in the above order, as qual-
ification under the latter criteria would be irrelevant if a use is physically or legally prohibited.
As noted previously, the subject property is a large holding of vacant, raw land, therefore the discussion
of Highest and Best Use will be limited to analysis of the property "As If Vacant", with consideration given
to its future development potential.
Legally Permissible - The subject property is zoned L-C, Limited Control, by the city of Carlsbad. L-C
zoning is intended as an interim zoning classification for properties for which either the land use designation
has not yet been developed or for which no development plans have yet been completed. Once either of the
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
*above has been completed, the property may be re-zoned appropriately. The Carlsbad General Plan Land
Use Map identifies the subject area for eventual development with low to medium density (up to four
dwelling units per acre) residential use (RLM). It is reasonable to conclude that the area will eventually be
re-zoned to conform with the General Plan land use designation, and any residential development which
does not exceed four dwelling units per acre would constitute a legally permissible use of the property.
Physically Possible - The subject property is a contiguous approximately 197.75 acre holding of vacant,
raw land. The topography of the property ranges from relatively level portions to areas of relatively steep
slopes in excess of 40%. There are areas on the property which have been identified as environmentally
sensitive, including a small area of riparian habitat along Calavera Creek which, according to planners, must
be avoided during development. All of these are conditions which are typically encountered by residential
developers in the course of mapping subdivisions. It is reasonable to conclude that neither the topography
nor the environmentally sensitive areas of the property would prohibit development to legally permissible
densities, and development as noted would satisfy the requirement of being physically possible.
Financially Feasible and Maximally Productive - Under current zoning and land use requirements, the
subject property must be developed to a low to medium density residential use. The residential market in
San Diego County in general, and in the Carlsbad area in particular, has been very good for the past two
years or more. As noted previously, the median price of a house in Carlsbad has increased over 35% in the
past two years. There is strong demand for new homes in good quality subdivisions, to the point that newly
opening subdivisions routinely have potential buyers "camping out" in line to insure an opportunity to
secure a home, and development of the subject property to this type of use would represent a feasible and
productive use of the site.
In order to determine the development potential of the subject properties, the appraisers secured the
engineering services of Rick Engineering Company. Bill Dumka of Rick Engineering conducted an analysis
of the property from the standpoint of the number and type of dwelling units that could be constructed on
the site given its unique set of topographical and environmental characteristics. Mr. Dumka's yield study
was discussed with city planners from Carlsbad who determined that the plan satisfied city requirements
including provision of 15% of the units for low income housing and also satisfied community facilities
requirements for master plans. We believe it represents a yield which could reasonably be expected for the
property.
We asked Mr. Dumka to provide yield information under two basic scenarios, one in which the property
is aggressively developed to include impacting an area of environmentally sensitive coastal sage scrub, and
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
ma second, more conservative approach in which the coastal sage scrub is primarily left intact. Under the
more aggressive scenario, Mr. Dumka concluded that the net developable area on the property is
approximately 132 acres. Under the more conservative approach, 100 acres of the property are considered
to be developable.
By using slightly varying product types under the two scenarios, Mr. Dumka was able to maximize the yield
on the property at 502 units in both cases. Both the total developable acres and the number of units under
each scenario include allowances for the required low income housing. We believe that it is reasonable to
expect that the actual development intensity on the site will fall between the extremes of Mr. Dumka's
analysis. For the purposes of our analysis, we have assumed that the subject property will yield 110
developable acres, and that this area will support the development of 502 units (including 75 low income
units). We have also concluded that the low income housing will be constructed on five acres of the
developable area.
If we deduct the low income housing totals from both the developable area and total number of units, the
result is 427 market rate homes to be constructed on a total of 105 developable acres. This equates to an
overall market rate unit density of 4.07 dwelling units per developable acre. This density is in line with the
land use designation for the area. Based upon review and analysis of several other projects with similar
development yields, the anticipated development intensity is sufficient to represent a productive and feasible
use of the property.
Reconciliation of Highest and Best Use - Development of the subject property to a residential use at the
densities noted above satisfies the requirements of being legally permissible, physically possible and
financially feasible and maximally productive. Accordingly, such development is considered to be the
Highest and Best Use of the subject property.
GENERAL VALUATION METHODOLOGY
In the valuation process, the subject property's physical characteristics and economic potential are analyzed
in order to develop an opinion of market value. Typically when developing this value, there are three
generally recognized approaches to estimating market value: the Cost Approach, the Sales Comparison
Approach, and the Income Approach.
The Cost Approach is useful in valuing new or proposed improvements which represent the highest and best
use of the site or special use properties that are not frequently exchanged in the market. This valuation
method relates the value of the subject property to the cost of similar land and construction materials.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
(g
Th<The Sales Comparison Approach compares the subject property with similar properties that have sold
recently. Comparison of the similarities and dissimilarities of these comparable properties to the subject
provides an indication of value that is derived directly from the actions of buyers and sellers in the
marketplace.
The Income Approach analyzes the economic characteristics of the property through its ability to produce
income. This approach generally involves Direct Capitalization of a property's one year stabilized net
operating income into perpetuity using a market derived overall rate. It could also involve valuation based
upon the present value of anticipated cash flows over an anticipated investment period.
Since the subject property is vacant raw land, neither the Cost Approach nor the Income Approach are
applicable valuation methods for its appraisal Accordingly, they have been omitted from our analysis,
and only the Sales Comparison Approach was used for land value analysis.
SPECIFIC VALUATION METHODOLOGY
Since this appraisal assignment involves acquisition of a portion of a property under California eminent
domain law, the first step is to develop an opinion of value of the entire subject property (the value of the
whole). This is a necessary first step because the unit values of the parts being acquired must be determined
on the basis of the unit value of the whole property. The subject property has been valued based on its utility
and demand in the market place as a large holding of vacant raw land with potential in the reasonably near
future for development with residential improvements.
The Sales Comparison Approach in a land appraisal typically involves comparison of land parcels that have
recently sold, and have locational and physical attributes similar to the subject property. The subject
property is a large holding of vacant, unentitled land which features a variety of characteristics including
areas of riparian habitat, areas of coastal sage scrub (California gnatcatcher habitat), areas of floodway and
floodplain fringe, and relatively large areas which have long been used for agriculture. The appraisers
initially approached our analysis of the subject from the perspective of zones of value, a scenario under
which various areas of the property contribute value at different unit values dependent upon their
characteristics. We researched the market and identified sales of properties that were primarily riparian
habitat, sales of coastal sage scrub properties and sales of agricultural land. Since the property is in an area
for which the eventual land use is residential development, we also located sales of land intended for
residential subdivision development.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
During the course of confirming sales of residential subdivision land we determined that residential
developers, whom we believe are the most likely potential buyers for the subject properties, generally do
not concern themselves with the per unit values of individual portions of a property. Almost any large
holding of land is likely to exhibit areas of differing habitat value, some of which are likely to be untouchable
from a development standpoint. In many cases, areas in flood plain are not considered to be problematic
since it is generally not difficult to plan the overall grading of the project in such a way as to minimize or
eliminate the flood plain area. Typical developers look at a property on the basis of its ratio of net
developable area to gross area. In other words, how much land must be purchased in order to yield an
adequate amount of developable area to make the project feasible. Given this approach to analyzing land
for possible purchase, we have concluded that using sales of residential subdivision land with generally
similar net to gross ratios and generally similar overall density potential is the appropriate way to analyze
the subject property. Information relating to the sales of various types of sensitive landnotedare retained
in our files but were not used in our analysis of the subject.
Emphasis has been placed upon finding recent land sales intended for development at intensities currently
permitted under the city of Carlsbad General Plan, or approximately four units per acre. After analyzing the
comparable land sales with respect to differences in real property rights conveyed, financing terms,
conditions of sale, market conditions on the date of sale, location, and physical and economic attributes,
the comparable sales data was reconciled to render a final Market value conclusion for the whole subject
property.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
VALUE OF THE WHOLE IN THE BEFORE CONDITION
The subject property is a large holding of unentitled vacant land located on the north side of El Camino Real
in the northeast portion of Carlsbad. The area is identified in the Carlsbad General Plan for eventual
development with low to medium density residential units, not to exceed a total of four units per acre.
The primary sources of comparable sales information were data published monthly by Comps Incorporated
(a firm which specializes in promulgating information relating to real estate transactions) and information
provided by brokers who specialize in sales of large holdings of residential subdivision land. The most recent
available sales of properties considered similar to the subject were investigated, verified and compared to
the subject.
Unit of Comparison - The unit of comparison used in this analysis is selling price per acre as this is
typically the basis upon which raw, unentitled holding land is bought and sold.
Financing - All of the land sales were verified during the confirmation process to be free of creative or
unusual financing arrangements which might have influenced the reported selling price. All of the sales were
cash transactions.
Conditions of Sale - All comparable sales were researched and analyzed in order to insure that they were
arms length transactions, and no adjustments were considered to be necessary for this factor.
Market Conditions - All of the land sales with development potential transpired since August 1998.
During the confirmation of these sales, we contacted numerous brokers, buyers and sellers who make a
market in residential subdivision land in the subject area. All of them were asked their opinions of the
market for this type of land in the area, and the majority suggested that they believed that the market had
improved and that there was upward pressure on selling prices of raw land during the period from the oldest
sale (August 1998) to the present. Additionally, sales, pending escrows and listings suggest upward
consideration for market conditions. We have given upward market consideration to comparables 3,4 and
6 as they sold more than a year ago.
Elements of Comparison - Elements of comparison used in this analysis are those typically considered in
residential subdivision land appraisals. They include location, overall site size, access and off site
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
f
1
1
improvements, physical condition of the property (on site improvements, shape, site utility, etc.), availability
of utilities, entitlements and development timing, and density/yield potential in terms of the number of units
jer gross acre. Included in the density/yield potential category are consideration of net to gross acres,
topography and biological habitat constraints. Note that since $/acre values typically decline as parcel size
increases, a larger holding of land is considered inferior on a $/acre basis to a smaller parcel. Each
comparable sale was compared to the subject on the basis of these factors to determine its overall
comparability to the subject property.
The following table arrays the comparables researched for comparison with the larger of the two subject
properties.
VACANT LAND COMPARABLES
Comp
1
2
3
4
5
6
7
Location
N side-of El Camino
Real 1/4 mile N of
College Blvd., Carlsbad
W of Carmel Mountain
Road and Sundance,
San Diego
W of Aviara Parkway at
Cobblestone Rd.,
Carlsbad
North & South of
Scripps Poway Parkway,
San Diego
West of Sundance Ave.
and Entreken Way, San
Diego
South of El Camino
Real East of Kelly Dr.,
Carlsbad
SEC Carlsbad Village
Dr. and Glasgow Dr.,
Carlsbad
APN
209-070-01,
02
306-051-04,
05,08
212-040-41
Multiple
306-041-06,
19, 20, 21
208-00-06
thru 10
168-041-08
Date
Open
option
12/99
01/00
8/98
1/99
Current
escrow
9/98
9/99
Size (Ac)
G 147.00
N 111.00
G 117.73
N 75.00
G 54.00
N 30.00
G 246.95
N 153.25
G 97.80
N 76.90
G 17.54
N 8.77
G 11.50
N 10.00
Selling Price
$ 11,760,000
$ 23,700,000
$ 16,931,000
$ 15,283,000
$ 20,600,000
$ 2,900,000
$ 3,200,000
Price/Ac
$ 80,000
$ 201,308
$ 313,537
$ 61,887
$ 210,634
$ 165,336
$ 278,261
Comments
Raw, unentitled land,
buyer is processing
maps
Raw, unentitled land
desig. for 5 units per
net acre. Buyer
processing maps.
Undeveloped land
with off-sites. Final
map approved shortly
after sale.
Raw, unentitled land,
rough topo. Buyer has
processed final map.
Raw land with
proposed tentative
map for 234 units.
Raw, undeveloped
land. Final map was
approved shortly after
close of escrow.
Sheet graded site with
off-site imps.
Residential density of
10-15 units/ac.
The following paragraphs address the comparables arrayed above.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Aooraisers • Consultants
Comparable No. 1 - This is a current, open option to purchase a large holding of land which totals
approximately 147 gross acres. This property is located approximately three quarters of a mile from the
subject and has similar zoning and land use development potential. Various biological constraints including
wetlands and coastal sage scrub reduce the developable area of this property to approximately 111 acres.
These areas were generally netted out of the gross land area to reflect net developable land area per current
mapping being processed on the property. The current option price is reported to be based on $80,000 per
gross acre, which equates to a total price of $11,760,000.
The property is improved with an older, small single family residence which, in the mind of the buyer,
contributes little or no value to the property and which will be razed in the process of developing a
residential subdivision on the property. The topography of this site ranges from generally level to gently
rolling hillsides. The property is accessible from El Camino Real via easements across intervening
properties, an asphalt paved artery. All typical utilities are available in El Camino Real and are accessible
to the property. The buyer is currently processing a tentative map which would permit the development of
100 single family residences on half acre lots. This equates to a density of less than one unit per net acre
and approximately 0.68 units per gross acre.
This comparable property is located in the immediate vicinity of the subject and is very similar in locational
characteristics. It is considered slightly inferior as to its access and availability of utilities, and inferior in
terms of its overall density/yield (much less than one unit per gross acre). It is considered slightly superior
to the subject in terms of entitlements. It is considered generally similar to the subject in other respects
including its location, overall size, physical condition of the land, development timing, zoning and similar
biological habitat constraints. Overall, this comparable which has a current option price of $80,000 per acre
is considered inferior to the subject.
Comparable No. 2 - This is the January 2000 sale to a single buyer of three contiguous parcels of land
from three separate sellers. The three properties total approximately 118 acres, but significant portions of
the parcels are in the environmental tier of the North City Future Urbanizing Area (NCFUA), reducing the
net developable area to approximately 75 acres. The individual sales closed escrow over a period of
approximately 30 days during December 1999 and January 2000. The total selling price was $23,700,000,
or $201,308 per gross acre.
The property sold as raw, unentitled land with no mapping or other approvals. It is in the NCFUA of the
city of San Diego, and is in a portion of the area which the voters approved for a "phase shift" permitting
residential densities of five units per acre. Shortly after the closing date a tentative map was submitted for
approval. The map was being processed during escrow and the purchase price was based on a net density
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
of approximately 5 units per acre. This property is accessible via un-maintained dirt roads which extend
from the westerly terminus of Sundance Avenue. No utilities currently serve the property, but they can
reasonably be expected to be extended to the area as development proceeds westward to this property.
Topography on the property ranges from generally level to steeply sloping hillsides. This sale property is
intended for development with a total of 421 residential units which include both single family and multi-
family units. This equates to a density of approximately 5.6 units per net acre and 3.6 units per gross acre.
This sale property is considered slightly superior to the subject in terms of its overall size on a dollars per
acre basis. It is superior to the subject as to its location in the North City West area of San Diego, its
entitlements and its development timing. As noted, a tentative map was filed shortly after close of escrow.
The map was being processed during the escrow period. This property is considered slightly inferior to the
subject as to its availability of utilities and its access and off-site improvements. This property is considered
generally similar to the subject in all other respects. Overall, this comparable property which sold for
$201,308 per acre is considerably superior to the subject.
Comparable No. 3 - This is the December 1998 sale of a parcel of undeveloped land located on the west
side of Aviara Parkway at Cobblestone Road in Carlsbad. The property totals approximately 54 acres in
size, but topography issues result in a developable area of approximately 30 acres. The selling price was
$16,931,000, or $313,537 per gross acre. This property sold with an approved tentative map permitting
development of 150 single family residences. This equates to a density of 5 units per net acre and 2.8 units
per gross acre.
This sale property is directly accessible from Aviara Parkway which is a fully improved, asphalt paved artery
in the area. All typical utilities are located in Aviara Parkway and were available to the property as of the
date of sale. As a result of the sloping topography, many of the mapped home sites have good views of the
surrounding area, with prime sites having ocean views. There were reportedly no biological habitat issues
affecting this property.
This comparable property was given upward consideration due to its date of sale in a weaker market. It is
superior to the subject in terms of its location, its overall size on a dollars per acre basis, and its access and
off-site improvements. It is considered slightly superior to the subject as to its availability of utilities. It is
considerably superior to the subject as to its entitlements and development timing. It is considered generally
similar to the subject in other respects including the physical condition of the land and its very similar overall
density/yield potential. Overall, this property which sold for $313,537 per acre is considered vastly superior
to the subject.
32
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Comparable No. 4 - This is the January 1999 sale of raw, undeveloped land located on the north and south
sides of Scripps Poway Parkway, just east of 1-15 in the Scripps Ranch area of San Diego. The property
totals approximately 246.95 acres in six parcels comprising three contiguous parcels on the north side of
Scripps Poway Parkway and three contiguous parcels on the south side of that major artery in the area.
Topographical constraints (steeply sloping hillsides) limit the developable area to approximately 153.25
acres. The selling price was $15,283,000, or $61,887 per gross acre. As of the date of sale Scripps Poway
Parkway was a folly improved, six lane divided, asphalt paved thoroughfare with concrete curbs, gutters
and sidewalks on both sides of the road. All typical utilities were in the street and available to the
comparable property. This was unentitled land as of the date of sale, however for over a year prior to the
date of sale, the buyer had been processing plans and maps for a mixed used master planned development
comprising commercial, office and retail uses on the north side of Scripps Poway Parkway and residential
units including 300 single family and 150 multi-family dwellings on the south side of the road. Development
of this property is currently in progress. The density for the residential portion of the property equates to
a little over 5 units per net acre and a little less than 3 units per gross acre.
This comparable property was given upward consideration due to its date of sale in a weaker market. It is
considered inferior to the subject in terms of its location, the physical condition of the land due to very steep
topography on a larger portion of the property, and its overall density/yield potential. It is considered
superior to the subject as to its entitlements and its access and off-site improvements. It is considered
generally similar to the subject in other respects including overall site size on a dollars per square foot basis,
development timing and availability of utilities. Overall, this property which sold for $61,887 per acre is
considered inferior to the subject.
Comparable No. 5 - This is the current escrow of a raw, undeveloped holding of land located at the
western ends of Sundance Avenue and Entreken Way in theRancho Penasquitos community of San Diego.
The property totals 97.80 acres. The selling price is $20,600,000, or $210,634 per gross acre.
Topographical and biological constraints including the existence of vernal pools on the property reduce the
developable area to approximately 76.9 acres. The property is generally rolling terrain with some areas of
steeper hillsides. Primary access to the property is from the west end of Sundance Avenue which currently
ends at approximately the property boundary. Typical utilities are available in both Sundance Avenue and
Entreken Way, but will require extension onto the subject property as development progresses. The buyer
had initially proposed a tentative map for 300 single family residences on the property. However, San Diego
city planners stated that a realignment of SR-56 now impacts the southwest corner of the parcel, combined
with avoidance of vernal pools which were not considered in the proposed map will reduce that number.
33
HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
- tillm
\ T»t.The buyer submitted tentative maps for a total of 234 units. This equates to a density of 3 units per net acre
and 2.4 units per gross acre.
This comparable property is considered superior to the subject as to its location, its entitlements and its
development timing. It is considered slightly superior to the subject in terms of its overall size on a dollars
per acre basis. It is considered slightly inferior to the subject in terms of its availability of utilities and its
access and off-site improvements. It is considered generally similar to the subject in all other respects
including its overall density/yield potential. Overall, this comparable property which has an agreed selling
price of $210,634 per gross acre is considerably superior to the subject.
Comparable No. 6 - This is the September 1998 sale of a parcel of raw, undeveloped land located on the
south side of El Camino Real at Crestview Drive in Carlsbad. The property totals 17.54 gross acres.
Topographic, biological and overhead utility line easement constraints reduce the developable size of this
property to approximately 8.77 acres. Although this property is significantly smaller than the subject, it is
included for consideration due to its close proximity to the subject. The selling price was $2,900,000, or
$165,336 per gross acre. This property was raw and undeveloped as of the date of sale, but it had an
approved tentative map permitting 35 residential units on the site. The property is directly accessible from
El Camino Real which is a fully improved, asphalt paved artery with concrete curbs, gutters and sidewalks.
All typical utilities are in El Camino Real and available to the property. It was reported that a final map was
approved shortly after the close of escrow and the 35 homes have been completed. Based upon those 35
homes, the density for this project is 4 units per net acre and 2 units per gross acre.
This sale property was given upward consideration due to its date of sale in a weaker market. It is included
in this analysis primarily due to its similar locational characteristics, being less than a mile from the subject.
It is considered superior to the subject in terms of its entitlements. It is considerably superior to the subject
as to its overall size on a dollars per acre basis and as to its development timing. This property is considered
generally similar to the subject in other respects including the physical condition of the land, availability of
utilities, its access and off-site improvements and its overall density/yield potential. Overall, this property
which sold in a weaker market for $165,336 per acre, is superior to considerably superior to the subject.
Comparable No. 7 - This is the September 1999 sale of a sheet graded vacant site located at the southeast
corner of Carlsbad Village and Glasgow Drives in the Calavera Hills development in Carlsbad. The property
totals approximately 11.5 acres, but once necessary off-site improvements are netted out the developable
area is approximately 10.0 acres. Like the preceding sale, this property is significantly smaller than the
subject but is included for consideration due to its close proximity. The selling price was $3,200,000, or
34
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers-Consultants
fg
CO'$278,261 per gross acre. This property was zoned for commercial use as of the date of sale. However, the
buyer owns several large surrounding parcels which are part of the Calavera Hills master planned
community and is currently processing a re-zone of the site to permit a cluster/courtyard housing
development on the site. The projected density for this project is between 10 and 15 units per acre. The
property was sheet graded as of the date of sale. Primary access to this property is currently from Glasgow
Drive which is a fully improved, asphalt paved street with concrete curbs gutters and sidewalks. Off-site
improvements are still needed on Carlsbad Village Drive. All typical utilities are in Glasgow Drive and are
available to the property.
This property is considered superior to the subject as to its location in a master planned community, the
physical condition of the land (sheet graded), its entitlements and its access and off-site improvements. It
is slightly superior in terms of its availability of utilities. It is considerably superior to the subject as to its
overall size on a dollars per acre basis and its development timing, and substantially superior as to its
density/yield potential. Overall, this property which sold for $278,261 per acre is considered vastly superior
to the subject.
Subject Purchase Offer - The appraisers are aware that the McMillin Companies have made the owners
an offer to purchase the bulk of the subject property. The offer is based on a gross size of approximately
169.2 acres and includes the adjacent, approximately 6.67 acre parcel owned by Brian and Gary Robertson.
It excludes a triangular shaped area at the southwestern corner of the subject. All of the details relating to
this transaction were provided to the appraisers, however, they will not be disclosed in this report due to
requested confidentiality on the part of the potential buyer. The offering price can be disclosed as a range,
and that range is between $110,000 and $130,000 per acre on a gross basis.
The following table lists the comparable sales in ascending order from most inferior to most superior to the
subject property.
35
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
LAND COMPARABLES SUMMARY
Comp Location Date Size (Ac)Selling Price Price/Ac Comparability
N & S of Scripps Poway Parkway,
San Diego
1/1999 246.95 $ 15,283,000 $ 61,887 Inferior
N side of El Camino Real near
College Boulevard, Carlsbad
Current
escrow
147.00 $ 11,760,000 $ 80,000 Inferior
S side of El Camino Real at
Crestview Drive, Carlsbad
9/1998 17.54 $ 2,900,000 $ 165,336 Superior to
Consid Superior
West of Carmel Mountain Road
and Sundance Avenue, San Diego
9/1999
1/2000
117.73 $ 23,700,000 $ 201,308 Consid Superior
W of Sundance Avenue and
Entreken Way, San Diego
Current
escrow
97.80 $ 20,600,000 $ 210,634 Consid Superior
SEC of Carlsbad Village Drive and
Glasgow Drive, Carlsbad
9/1999 11.50 $ 3,200,000 $ 278,261 Vastly Superior
W of Aviara Parkway at
Cobblestone, Carlsbad
8/1998 54.00 $ 16,931,000 $ 313,537 Vastly Superior
These seven comparables are considered to be the best available indicators of the market value of the
subject property. They are considered to bracket, albeit somewhat widely, the subject value. Based on our
research and analysis of these comparable properties, we have concluded that the market value of the
subject property is $130,000 per acre.
Value of the Whole 197.75 Ac x $130,000/Ac $25,707,500
Rounded: $25,710,000
Based upon our projected net developable estimate of 110 acres, this value equates to $233,727 per net
acre, a value that is consistent with our market data and the attributes of the subject property.
VALUE OF THE PART BEING ACQUIRED
As discussed previously in the report, the appraisers have been requested to consider three different
acquisition scenarios for the subject property. The following paragraphs address the value of the part being
acquired either as permanent easements or in fee under each of these scenarios. The value of temporary
easements will be addressed later.
Scenario 1 - Under Scenario 1 the city will acquire permanent easement rights to three areas of the
property. First is an easement encumbering approximately 11.86 acres of the property for an "Inundation
Easement" as part of the detention basin project. Second is a permanent storm drain easement totaling
36
HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
approximately 0.05 acres in size. Third, permanent easement rights to an approximately 0.70 acre area will
be acquired as a mitigation easement to offset impacts to biological habitat on the property during
construction of berms designed to detain water in the innundation easement area. These easements total
approximately 12.61 acres and, in our opinion, represent nearly a full taking of the owners bundle of rights
to these portions of the property. The owner retains fee title to these areas but will not be able to use the
area for their exclusive purposes. As noted, when no water is being detained, the large innundation
easement area is expected to be used by the city for soccer fields.We have concluded that these takings
represent 90% of the unencumbered fee value of the land.
The easement areas noted above include areas of riparian habitat, flood plain and areas which are included
in development bubbles under the proposed development of the site provided by Mr. Dumka. Considered
individually, these areas would very likely have differing per acre values based on comparison with similar
types of land. The appraisers have researched sales of both riparian habitat and mitigation land, and data
relating to those sales is retained in our files. These sales were not used in our analysis because a) under
California eminent domain law, the value of the parts acquired are derived on the basis of the per unit value
of the whole property, and b) the per gross acre value of the whole property is higher than the per gross
acre values of the riparian and mitigation sales. The value of the whole property was previously determined
to be $130,000 per acre, and the values of the parts being acquired can be calculated as follows.
Innundation Easement 11.86 Ac x $130,000/Ac x 90% $1,387,620
Storm Drain Easement 0.05 Ac x $130,000/Ac x 90% 5,850
Mitigation Easement 0.70 Ac x $130.000/Ac x 90% 81.900
Total $1,475,370
Rounded: $1,480,000
Scenario 2 - Under Scenario 2, rather than acquiring easement rights for the innundation and mitigation
areas, the city would acquire the entire portion of the subject property which lies north of the proposed
alignment of College Boulevard, approximately 34.35 acres, plus the approximately 0.05 acre storm drain
easement noted under Scenario 1. The area north of proposed College Boulevard includes the Innundation
Easement and the Mitigation Easement, but not the Storm Drain Easement. It also includes an additional
21.79 acres of land, the majority of which is considered development area under Mr. Dumka's proposed
development plan.
A portion of the area being acquired under this scenario is in flood plain fringe. However, as discussed
previously, residential subdivision developers routinely deal with properties containing flood plain fringe
37
HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
areas. It is generally possible to maximize development in these areas by designing grading plans which use
earth from other portions of the property to raise the flood plain fringe area above the 100 year flood plain.
This is also the area in which the detention basin is to be constructed. As we understand it, the size of the
innundation area of the detention basin is, within reason, flexible so long as 49 acre feet of water can be
detained. The surface area of the innundation area can be reduced by making the area deeper. We believe
a developer would maximize the developable area of the site by making the innundation area as deep as
reasonably possible. The most recent plans provided by Mr. Dumka indicate that development bubbles
totaling approximately 16.5 acres could be accommodated in the area being acquired under this scenario.
As before, we believe the storm drain easement represents a taking of 90% of the owner's bundle of rights
to that area. The value of the part being acquired under Scenario 2 can be calculated as follows.
Fee Acquisition Area 34.35 Ac x $130,000/Ac $4,465,500
Storm Drain Easement 0.05 Ac x $130,000/Ac x 90% 5.850
Total $4,471,350
Rounded: $4,470,000
Scenario 3 - Under Scenario 3 the city, in addition to either Scenario 1 or 2, would purchase an additional
10 acres in fee for use as a public park. The specific 10 acre area has not been identified but review of
available mapping strongly suggests that it would be in the area south of proposed College Boulevard and
north of proposed Cannon Road. This is the prime development area of the property because it contains
no riparian habitat and very little coastal sage. It is very likely that the entire ten acres proposed for this
acquisition would come from developable area on the property. As a result, unlike Scenarios 1 and 2 above,
the ratio of developable to non-developable land for the area being acquired is not generally similar to the
ratio of the whole property which includes large areas of land which is not developable for one reason or
another. Determining the value of this acquisition area on the basis of the per unit value of the whole
property would be inappropriate.
Using the same sales used in developing an opinion of value for the whole property, but considering them
on a net acre basis provides a reasonable approach to developing an opinion of value for this acquisition
area. Sale 7, a vastly superior finished site which is nearly all usable, provides a particularly good indication
because it is in the immediate area and it is also very close in size to the area being acquired. It sold for
approximately $278,000 per acre, gross and $320,000 per net acre. Considering this sale along with the
other six sales discussed previously, which bracket the physical characteristics of the subject, we have
concluded that the value of the area being acquired for a future park is $250,000 per acre.
38
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
The value of the park site can be calculated as follows.
Park Site (Fee) 10 Ac x $250,000/Ac $2,500,000
Since the area being considered for a park site does not overlap any of the area being acquired under either
Scenario 1 or Scenario 2, the value of the part being acquired under Scenario 3 is the sum of the value of
the park site and the value of the part being acquired under whichever of the first two scenarios the city
chooses to pursue. The total value of the part being acquired under Scenario 3 can be calculated as follows.
Scenario 3 with Scenario 1 $3,980,000
Scenario 3 with Scenario 2 $6,970,000
VALUE OF-THE REMAINDER AS PART OF THE WHOLE
The value of the remainder as part of the whole is determined by deducting the value of the part being
acquired from the value of the whole in the before condition. Again, three separate scenarios have been
considered and are discussed in the following paragraphs.
Scenario 1 - Under this scenario the city would purchase permanent easement rights encumbering a total
of 12.61 acres. The value of the part being acquired was determined to be $1,480,000. The value of the
remainder as part of the whole under Scenario 1 can be calculated as follows.
Value of the Whole in the Before Condition $25,710,000
Value of the Part Being Acquired 1.480.000
Value of the Remainder as Fart of the Whole $24,230,000
Scenario 2 - Under this scenario the city would purchase in fee the entire area north of the proposed
alignment of College Boulevard plus the storm drain easement. The value of the part being acquired under
Scenario 2 was previously determined to be $4,299,375. The value of the remainder as part of the whole
under this scenario can be calculated as follows.
39
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Ig
\7,
If
Value of the Whole in the Before Condition $25,710,000
Value of the Part Being Acquired 4.470.000
Value of the Remainder as Part of the Whole $21,240,000
Scenario 3 - Under this scenario the city will purchase in fee, in addition to either Scenario 1 or 2, an
additional 10 acre site to be used as a public park. The value of the park site was determined to be
$2,500,000. The value of the remainder as part of the whole depends on whether this option is pursued in
conjunction with Scenario 1 or Scenario 2. The two possibilities are calculated as follows.
Value of the Whole in the Before Condition $25,710,000
Value of the-Part Being Acquired (Scenario 3 with Scenario 1) 3.980.000
Value of the Remainder as Part of the Whole $21,730,000
Value of the Whole in the Before Condition $25,710,000
Value of the Part Being Acquired (Scenario 3 with Scenario 2) 6.970.000
Value of the Remainder as Part of the Whole $18,740,000
VALUE OF THE REMAINDER IN THE AFTER CONDITION
The value of the remainder in the after condition must be calculated under each of the three acquisition
scenarios discussed previously.
Scenario 1 - Under this scenario the property will still be an approximately 197.75 acre parcel of residential
subdivision land which is encumbered with three permanent easements totaling 12.61 acres in size. We
previously determined that these easements represent a 90% taking of the owner's bundle of rights to the
encumbered areas. Review of possible development scenarios for the subject property provided by Rick
Engineering Company suggests that the encumbered areas are made up of generally the same ratio of
developable to non-developable area as the property as a whole. As a result, the expected gross acre to net
acre ratio is the same in the after condition as it was in the before condition, and the same comparables used
in the before condition analysis are the best sales to use for the after condition analysis. The resulting per
40
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
acre value of the subject property in the after condition is the same as it was in the before condition, or
$130,000 per acre. The value of the remainder in the after condition can be calculated as follows.
Unencumbered Portion 185.14 Ac x $130,000/Ac $24,068,200
Encumbered Portion 12.61 Ac x $130,000/Ac x 10% 163.930
Value of the Remainder in the After Condition $24,232,130
Rounded: $24,230,000
Scenario 2 - Under this scenario the city will purchase fee simple rights to a total of 34.35 acres of the
subject property. This is the entire portion of the property which lies north of the proposed alignment of
College Boulevard. In the after condition the property will be approximately 163.4 acres in size. In addition,
the city will purchase permanent easement rights to the 0.05 acre storm drain easement area on the south
side of proposed Cannon Road. Again, this easement acquisition is considered to be a taking of 90% of the
owner's bundle of rights to that area. As with Scenario 1, review of possible development scenarios
indicates that the acquisition areas comprise land in generally the same developable to non-developable
ratios as the property as a whole, and the per unit value of the remainder is $130,000 per acre. The value
of the remainder in the after condition can be calculated as follows.
Unencumbered Portion 163.35 Ac x $130,000/Ac $21,235,500
Encumbered Portion 0.05 Ac x $130,000/Ac x 10% 650
Value of the Remainder in the After Condition $21,236,150
Rounded: $21,240,000
Scenario 3 — Under this scenario the city would pursue either Scenario 1 or Scenario 2 above and, in
addition, purchase fee simple rights to an additional 10 acres of land for use as a public park. The specific
location of the park site has not been determined. For purposes of this analysis we have assumed that even
though the acquisition for park land is entirely from developable area, it is small enough in relation to the
size of the entire property that the remainder is still made up of generally the same ratio of developable to
non-developable area as the whole property. Comparing the remainder under this scenario with the same
comparable properties used in determining the value of the whole is still appropriate and results in the per
acre value of the remainder being $130,000. There are two possible values of the remainder in the after
condition depending on whether the city chooses this option in conjunction with Scenario 1 or 2.
41
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Scenario 3 with Scenario 1
Unencumbered Portion 175.14 Ac x $130,000/Ac $22,768,200
Encumbered Portion 12.61 Ac x $130,000/Ac x 10% 163.930
Value of the Remainder in the After Condition $22,932,130
Rounded: $22,930,000
Scenario 3 with Scenario 2
Unencumbered Portion 153.35 Ac x $130,000/Ac $19,935,500
Encumbered Portion 0.05 Ac x $130,000/Ac x 10% 650
Value of the Remainder in the After Condition $19,936,150
Rounded: $19,940,000
SEVERANCE DAMAGES
Under all three acquisition scenarios, the value of the remainder in the after condition is unchanged from
the value of the remainder as part of the whole. The property has the same development potential in terms
of number of units per acre in the after condition as could be built in the before condition. In addition, the
overall ratio of gross area to net developable area is generally the same in the after condition as it was in
the before condition. As a result, no severance damages accrue to the property.
BENEFITS
Under acquisition scenarios 1 and 2, the value of the remainder in the after condition is unchanged from the
value of the remainder as part of the whole, and no benefits accrue to the property. Under Scenario 3, the
value of the remainder in the after condition is $1,200,000 higher than the value of the remainder as part
of the whole. This occurs because compensation for the 10 acre park being acquired under Scenario 3 is
based on the per net acre value of the property since the entire park acquisition is from developable area.
The value of the remainder as determined by comparison with comparable properties, considers the value
of the property on a per gross acre basis. This difference in remainder values makes it appear as though the
property benefits from the park acquisition, however, we do not believe that any such benefit exists. In any
event, since the property is not damaged by any of the proposed acquisitions, and since benefits can be used
42
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
- jgj
m onlonly to offset damages, the existence of benefits in the absence of damages would make no difference in
just compensation to the property owner.
The appraisers considered that as a result of the detention basin project, the area of the property in Flood
Zone A will be significantly reduced. On the surface, this might seem to be a benefit to the property
resulting directly from the project. However, as a result of the varied terrain found in most of San Diego
County, residential subdivision builders have developed the ability to minimize areas of flood zone on their
raw land properties by simply developing final grading plans which take earth removed from higher
elevations on a site and using it to raise low lying areas to elevations above the 100 year flood plain.
We used seven sales of residential subdivision land to develop the opinion that the value of the whole
property in the before condition, including the portion that is in flood plain, is $130,000 per acre. That
developers do not consider some areas of flood plain on a property to be a negative is supported by the fact
that the current offer from McMillin Companies to purchase the property is very close to that amount on
a gross acre basis.
VALUATION - TEMPORARY ACCESS AND CONSTRUCTION EASEMENTS
Compensation for a temporary easement typically amounts to compensation to the owner for loss in utility
of the area for the period of time that the use of the area is lost. In essence, the city is leasing a portion of
the property from the owner for a specified period of time. A common method of estimating compensation
is to develop an appropriate monthly rental rate for the easement area, then calculate the present value of
a stream of monthly rental payments for the duration of the easement. The monthly rental rate is typically
developed using a land rate of return based upon the market value of the land.
Land Rate of Return - Typically, ground lease rates are determined by applying a land rate of return to
the value of the land being leased to derive an appropriate rental rate. Ideally, in an active market, sufficient
market data is available to extract an appropriate rate of return directly from the market. Unfortunately, no
such market exists for leasing residential land. However, the appraisers have significant experience in
dealing with ground leases of other property types such as commercial or industrial land, and have
conducted extensive land lease rate studies in all areas of San Diego County as well as up and down the
entire west coast. It is interesting to note that for the vast majority of these studies, irrespective of property
type or current condition of the market, the land rate of return used to determine rental rates does not vary
much. Only in unusual cases is the rate of return to the land below 9% or above 10.5%. It is much more
common for changes in land value to drive changes in the rental rate, than for changes in the land rate of
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
return to drive changes in the rental rate. Therefore, it is our opinion that, even given the lack of market
data relating to land rate of return to residential land, it is reasonable to expect leased residential land to
generate a return rate generally similar to that returned to other types of leased land. This conclusion is
based on the appraisers having conducted numerous land lease rate studies over the past several years in
which the stated lease rate varies very little either between property types or with time. Based on our
surveys and analysis, we have concluded that a land rate of return of 10% is appropriate for estimating a
fair rental rate for the subject easement area.
Duration of the Easement - The appraisers were not provided specific target dates for the commencement
of completion of the proposed project. For purposes of this analysis we have assumed that the temporary
easements will be established on 1 July 2000 and will remain in effect for a period of eighteen months. This
may seem to be an excessive period of time, however, experience has shown that projects of this magnitude
frequently fall behind schedule, and it is considered reasonable to encumber the subject property for a
sufficient amount of time to ensure completion.
Discount Rate - The process of estimating appropriate compensation for the property owner involves
estimating a fair monthly rental rate for the property, then projecting that rental rate into the future as a
series of cash flows to the owner for the duration of the easement. In order to account for the time value
of money, cash flows projected to be received in the future must be discounted to determine their present
value. In typical real estate transactions, discount rates in the range of 11% to 12% are common. These
rates include an allowance for the investor's perception of risk as it relates to the durability of the income
stream. In the case of the subject property, on the other hand, the owner is not investing in a real estate
transaction, and to use a discount rate which includes an allowance for the risk involved in those
transactions is considered inappropriate. In our opinion, a "safer" rate is considered more appropriate and
we researched CD and short term bond rates. Those rates currently range generally from about 6%.to 8%,
and we have concluded that a discount rate of 7% is appropriate for the subject.
Present Value Factor - Since the compensation to the owner is typically an up front lump sum payment
rather than a series of monthly rent payments, it is necessary to calculate the present value of that series of
cash flows. The most direct method is to determine the Present Value Factor, which is the amount by which
a monthly rental rate must be multiplied to determine the present value of a specified number of cash flows
discounted at a particular rate. The Present Value Factor varies depending on the number of cash flows,
when the cash flows begin and the discount rate. Note that since rent payments are typically made at the
beginning of the month, the present value factor must be calculated on the basis of beginning of period
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers "Consultants
payments. The Present Value Factor for 18 periods, an 7% discount rate, with payments commencing at
7/2000, is 17.04.
Information provided by Rick Engineering indicates that the two temporary easements total 4.17 acres in
size. The underlying fee value of the land encumbered by these easements was previously determined to be
$130,000 per acre. The underlying value of the easement areas is:
Value of easement area 4.17 Ac x $130,000/Ac $521,250
Rounded: $520,000
Annual Rental Rate
Monthly Rental Rate
Present Value of the
Income Stream
Land Value x
$520,000.00 x
$52,000.00
Annual Rent •*•
$52,000.00 -s-
$4,333.33
Rate of Return
10%
Months/Year
12
Monthly Rent x Present Value Factor
$4,333.33 x 17.04
$75,000.00 Rounded
Value of Temporary Easement Rights $75,000
JUST COMPENSATION
Just compensation to the property owner is the sum of the value of the part to be acquired, plus any net
severance damages which accrue to the remainder. In this instance, just compensation to the property
owners depends on which acquisition scenarios are chosen. The following paragraphs address just
compensation to the property owners under the three acquisition scenarios.
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mc«Scenario 1
Value of the whole in the before condition A $ 25,710,000
Value of the part taken (excluding temporary easements) B $ 1,480,000
Value of the remainder as part of the whole (A-B) C $ 24,230,000
Value of the remainder in the after condition-before benefits D $ 24,230,000
Value of the remainder in the after condition - after benefits E $ 24,230,000
Severance damages (C - D) F $ 0
Benefits (E-D) G $ 0
Net severance damages (F - G, never less than 0) H $ 0
Value of the temporary easements I $ 75,000
Just compensation (B + H +1) $ 1,560,000
Scenario 2
Value of the whole in the before condition A $ 25,710,000
Value of the part taken (excluding temporary easements) B $ 4,470,000
Value of the remainder as part of the whole (A - B) C $ 21,240,000
Value of the remainder in the after condition - before benefits D $ 21,240,000
Value of the remainder in the after condition - after benefits E $ 21,240,000
Severance damages (C - D) F $ 0
Benefits (E - D) G $ 0
Net severance damages (F - G, never less than 0) H $ 0
Value of the temporary easements I $ 75,000
Just compensation (B + H +1) $ 4,550,000
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Scenario 3 with Scenario 1
Value of the whole in the before condition A $ 25,710,000
Value of the part taken (excluding temporary easements) B $ 3,980,000
Value of the remainder as part of the whole (A - B) C $ 21,730,000
Value of the remainder in the after condition - before benefits D $ 22,930,000
Value of the remainder in the after condition - after benefits E $ 22,930,000
Severance damages (C - D) F $ 0
Benefits (E-D) G $ 0
Net severance damages (F - G, never less than 0) H $ 0
Value of the temporary easements I $ 75,000
Just compensation (B + H +1) $ 4,060,000
Scenario 3 with Scenario 2
Value of the whole in the before condition A $ 25,710,000
Value of the part taken (excluding temporary easements) B $ 6,970,000
Value of the remainder as part of the whole (A-B) C $ 18,740,000
Value of the remainder in the after condition - before benefits D $ 19,940,000
Value of the remainder in the after condition-after benefits E $ 19,940,000
Severance damages (C - D) F $ 0
Benefits (E-D) G $ 0
Net severance damages (F - G, never less than 0) H $ 0
Value of the temporary easements I $ 75,000
Just compensation (B + H +1) $ 7,050,000
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SUBJECT PHOTOGRAPHS - BRIAN AND GARY ROBERTSON
Subject property looking north from approximately the southerly property line.
Subject property looking generally south to southwest.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers Consultants
DESCRIPTION OF THE SUBJECT PROPERTY, BRIAN AND GARY ROBERTSON
LOCATION
The subject property consists of an approximately 6.67 acre parcel of unentitled vacant land located in the
northeastern section of the city of Carlsbad. It is situated on the north side of the large holding of vacant
land owned by Virginia Robertson, et al, which was previously described. It is also adjacent to the
southeasterly portion of the Calavera Hills development.
APN
168-040-30
OWNERSHIP
Title to the subject property is vested in Brian K. Robertson and Gary W. Robertson, as tenants in common,
each as to an undivided V* interest.
LEGAL DESCRIPTION
The appraisers reviewed a Title Report prepared by Benefit Land Title Insurance Company dated 2
December 1999, which contains a legal description of the subject property. The legal description is long and
complex, and a photocopy is provided in the addendum.
REAL PROPERTY TAXES/ASSESSMENTS
Tax Rate Area 09162
Tax Rate 1.04940%
1990/2000 Taxes $641.10
Assessed Value - Land $46,3 00
Assessed Value - Imps N/A
Total Assessed Value $46,3 00
According to the San Diego County Tax Assessor's internet site, the first installment of current year taxes
was paid on 12/10/99 and the second installment was paid on 4/1/00.
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PLAT MAP - BRIAN AND GARY ROBERTSON
168-04SHT I OF 2
CHANGES
BLK OLD
i'U
19it9ft/
NEW rid CUT
,*
terx*
<*tsfta£ita*ts sa«
&n
tfli
MAP 823 - RHO AGUA HEDIONOA - POR OF LOTS D & L
MM 231 - ROS 4610,9336,11847,12939
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers Consultants
SHAPE AND SIZE
San Diego County Assessor's data indicates that the subject property is approximately 6.67 acres in size.
It is irregular in shape. Please refer to the Plat Map on the facing page
TOPOGRAPHY
Much of this property is in the form of relatively steep hillsides along the small canyon through which
Calavera Creek runs. There is a more or less level area at the southeastern corner of the property which
comprises an estimated 20% of the parcel.
BIOLOGICAL HABITAT/ENVIRONMENTAL CONSIDERATIONS
As with nearly any holding of land in San Diego County, the subject property exhibits characteristics of
interest from an environmental standpoint. Mapping provided by the city of Carlsbad indicates that the
majority of the subject property is southern riparian scrub, which is identified as a sensitive resource. A
small portion of the property is identified as having been used for agriculture and is no longer of any
particular environmental interest. Calavera Creek bifurcates the property in a generally north south
direction.
IMPROVEMENTS
The subject property is vacant, raw land with no improvements.
UTILITIES
All typical utilities will have to be extended to this property as development of adjacent areas progresses.
DEVELOPMENT STATUS
The subject property is raw, unentitled, unimproved land. No mapping has yet been approved.
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ACCESS
Primary access to the property is via a dirt road which crosses the adjacent property to the south. The
closest paved road accessible via this road is El Camino Real approximately one mile south of the subject.
The property also has possible secondary access via a paved perimeter road serving the adjacent Calavera
Hills residential development, however, this access is not always available as the entrance to the road is
gated.
ZONING AND PLANNING
Conversations with Eric Munoz and other planners at the city of Carlsbad and review of a zoning map
provided by the city indicate that the subject property is in an area zoned L-C, Limited Control. The L-C
zone is intended to provide an interim zone for areas where planning for future land uses has not been
completed or plans of development have not been formalized. After proper planning or plan approval has
been completed, property in zone L-C may be rezoned. The Carlsbad General Plan Land Use Map identifies
the area for RLM use, or low to medium density residential use with up to four dwelling units per acre. An
area in the southeastern portion of the property, estimated to be approximately 20% of the parcel, is
identified as developable. According to available land use information, the property could be developed with
approximately 26 residential units if they were clustered in this developable area.
TITLE REPORT
Review of a preliminary title report prepared by Benefit Land Title Insurance Company, dated 2 December
1999, indicates that the property is encumbered with numerous easements for a variety of purposes
including utilities, drainage and public roads. Also noted are two unrecorded leases, dated 1963 and 1985,
and a "pending" court action filed by the city of Carlsbad in 1980 relating to eminent domain easement
acquisition. The exceptions noted in this title report are virtually the same as those noted in the title report
for the adjacent 200 acre property owned by Virginia Robertson, et al. This was explained as being the
result of the fact that the entirety of both properties once belonged to the same family, and the exceptions
noted in both title reports apply to the entire holding rather than to the individual parcels. These types of
encumbrances are considered common for properties such as the subject and are typically dealt with as a
normal part of the mapping and development process. They are considered unlikely to limit development
of the subject property to its Highest and Best Use.
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Ill"
FLOOD MAP - BRIAN AND GARY ROBERTSON
Subject
Calavera Creek
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BASEMENTS
The title report noted above includes as exceptions a total of 27 easements. These easements are for road,
public utility, drainage or pipeline purposes. Their locations are not specified in the title report, and the
appraisers have not been provided a right of way map identifying their locations. There appears to be a very
large number of easements considering the small size of the property, and the list of exceptions contained
in the title report for this property appears to be the same as those noted for the adjacent property owned
by Virginia Robertson, et al. The title company explained that the exceptions to title, including these
easements, apply to the entire Robertson holding rather than individually to either of the two parcels.
It is assumed that the majority of these easements do not apply to this property and that these exceptions
would be removed from a parcel specific title report when prepared in conjunction with mapping for only
the subject property. We have no reason to believe that there are any easements which will limit the
development-of the property to its Highest and Best Use.
FLOOD ZONE
Despite the fact that Calavera Creek bifurcates the subject property, review ofFEMAFlood Insurance Rate
Map 06073 C0766F, dated 19 June 1997, indicates that the subject property is in white zone X, identified
as outside the 500 year floodplain. However, the subject property is north of the "limit of detailed study"
identified on the FEMA map.
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Iff
VALUATION ANALYSIS
HIGHEST AND BEST USE
The first step in the valuation process is to determine the property's Highest and Best Use. When appraising
under California eminent domain law, the Highest and Best Use of the whole property, prior to the
proposed project, must be determined. The highest and best use of a property is very important as it
establishes the foundation on which real estate value is based for a given property type. As used in this
report, Highest and Best Use is defined as:
That reasonably probable and legal use of vacant land or an improved property, which is
physically possible, appropriately supported, financially feasible, and which results in the
highest land value.
The definition noted above was taken from the Appraisal Institute's Appraisal of Real Estate, 11* Edition.
There are two distinct analyses in the highest and best use process; the highest and best use analysis of the
site as if it were vacant, and the highest and best use analysis of the site as it is improved.
As if vacant, the highest and best use could be for immediate development of the property or holding for
future development. As improved, the highest and best use analysis considers the possibility of continuing
the current use, conversion to an alternative use or demolishing the existing improvements and constructing
another use considered to yield a higher return to the property.
The determination of the highest and best use of a property either improved or vacant, must consider the
following four criteria. Is the potential use: (1) legally permissible, (2) physically possible, (3) financially
feasible, and (4) maximally productive. These criteria should be considered in the above order, as qual-
ification under the latter criteria would be irrelevant if a use is physically or legally prohibited.
As noted previously, the subject property is a vacant parcel of raw land, therefore the discussion of Highest
and Best Use will be limited to analysis of the property "As If Vacant", with consideration given to its
future development potential.
Legally Permissible - The subject property is zoned L-C, Limited Control, by the city of Carlsbad. L-C
zoning is intended as an interim zoning classification for properties for which either the land use designation
has not yet been developed or for which no development plans have yet been completed. Once either of the
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above has been completed, the property may be re-zoned appropriately. The Carlsbad General Plan Land
Use Map identifies the subject area for eventual development with low to medium density (up to four
dwelling units per acre) residential use (RLM). It is reasonable to conclude that the area will eventually be
re-zoned to conform with the General Plan land use designation, and any residential development which
does not exceed four dwelling units per acre would constitute a legally permissible use of the property.
Physically Possible - The subject property is an approximately 6.67 acre parcel of raw, unentitled vacant
land. The topography of the property ranges from generally level portions to areas of relatively steep slopes.
There are areas on the property which have been identified as environmentally sensitive, mostly southern
riparian scrub which is found on the majority of the parcel. There is a generally level area in the southeastern
comer of the property, estimated to be not more than 20% of the parcel, which is identified as having been
used for agriculture and which is considered to be the developable portion of this property. It is reasonable
to conclude that neither the topography nor the environmentally sensitive areas of the property would
preclude cluster development at up to legally permissible densities, and development as noted would satisfy
the requirement of being physically possible.
Financially Feasible and Maximally Productive -Under current zoning and land use requirements, the
subject property must be developed to a low to medium density residential use. The residential market in
San Diego County in general, and in the Carlsbad area in particular, has been very good for the past two
years or more. As noted previously, the median price of a house in Carlsbad has increased over 35% in the
past two years and up-scale cluster housing has also seen strong appreciation in prices. There is strong
demand for residential product, to the point that newly opening subdivisions routinely have potential buyers
"camping out" in line to insure an opportunity to secure a home, and development of the subject property
to this type of use would represent a feasible and productive use of the site.
However, we do not believe such development would be feasible until after, or perhaps in conjunction with,
development of the adjacent property owned by Virginia Robertson, et al. The subject is a relatively small
parcel which, under current allowable densities, could support only 26 units. Further, there is limited
developable area estimated to be less than 1.5 acres on which the units would need to be clustered. Mr.
Dumka's study concluded that approximately 18 units could be built on the subject property. All necessary
supporting infrastructure such as paved roads and utilities would have to be extended to the property, a
distance of more than a mile across the adjoining property. As noted in the description section, there is a
paved road in the vicinity of the subject property. However, this is a single lane asphalt road that appears
to be intended to facilitate maintenance of landscaping on the perimeter slopes of the adjacent Calavera Hills
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res:residential development. Entrance to this road is typically secured by a locked gate. Even if it could be used
as access to a development on the subject property it would have to be improved to city street standards.
It is considered very unlikely that a maximum allowable density development of the subject parcel could
support the cost of extending infrastructure to the property. As a result, it is considered extremely unlikely
that this property would be developed on its own. It is, however, considered both possible and probable that
the property could be assembled to the adjacent parcel and the two properties developed jointly.
Reconciliation of Highest and Best Use - Joining the subject property with the adjacent approximately
200 acre parcel owned by Virginia Robertson, et al would satisfy the requirements of being legally
permissible, physically possible and financially feasible and maximally productive. Accordingly, such a use
is considered to be the Highest and Best Use of the subject property.
SPECIFIC VALUATION METHODOLOGY
The subject property has been valued based on its utility and demand in the market place as a small holding
of vacant raw land with potential for development with residential improvements either after or in
conjunction with development of the adjacent approximately 200 acre property owned by Virginia
Robertson, et al.
The value of vacant land is typically developed by using the Sales Comparison Approach which involves
comparison of land parcels that have recently sold, and have locational and physical attributes similar to the
subject property. The subject property is a small holding of vacant, unentitled land which features a variety
of characteristics including relatively large areas of sensitive habitat, mainly southern riparian scrub, as well
as an area which has long been used for agriculture and is more or less level and is considered suitable for
development. Calavera Creek also bifurcates the property. There is no public paved road access to the
property and no utility distribution lines extend to the site. No recent sales with similar limiting physical
characteristics and development constraints were discovered during our market data research.
Lacking directly comparable sales, we used two alternative methods to develop an opinion of the market
value of the subject property. First, we developed its value based upon its contributory value to the
adjoining property, and second, we considered the indications of value provided by sales of two vastly
superior small, vacant parcels located within a mile of the subject property.
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VALUE OF THE SUBJECT IF JOINED TO THE ADJACENT PROPERTY
In our analysis of the adjacent 200- acre property under the Sales Comparison Approach, we researched
and analyzed seven comparable properties, all of which have the potential for being developed to residential
uses in the near term. These comparable properties varied widely in terms of selling prices and physical
characteristics but bracketed the physical characteristics and value of the adjoining property fairly well.
These sales indicated a market value of $130,000 per gross acre for this property which has short term
development potential.
The subject property is an approximately 6.67 acre parcel of land identified for eventual residential use
under the Carlsbad general plan. It has a net developable area of an estimated 20% of its total size, or about
1.5 acres. Its primary access is via a mile or more of un-maintained dirt road, and development of the
property would require that both paved road access and all typical utilities be extended across that entire
distance as part of the project. We believe these factors minimize the desirability of the subject property as
a stand alone property.
Another factor to be considered in this analysis is the manner in which Calavera Creek traverses this
property and the adjacent parcel to which it could be joined. The creek, and its associated riparian habitat,
runs generally north and south through the center of the subject property. The portion of the property
identified as developable is on the east side of the creek. On the adjacent property, the creek runs generally
along its eastern boundary, and virtually all of the developable area is on the west side of the creek. As a
result, even if the subject is joined to the adjacent property, a means of extending access and utilities across
the creek would have to be found in order to take advantage of the added development area. This process
would be costly and such an effort would also impact the riparian habitat on the property, significantly
complicating the development process.
In lieu of actual development of the subject property, another possibility would be to join the subject to the
adjacent property, but use it only for density calculations, thereby gaining approval for a greater number
of units on the developable portion of the adjacent property. In this case, however, the size of the subject
is only about 3% of the size of the adjacent property, and its inclusion in density calculations would result
in only a minimal increase in the number of units permitted. We do not believe an adjoining owner or
developer would be likely to be interested in this alternative.
As we have noted previously, we believe the subject has only minimal near term development potential. We
also believe that its value would increase significantly if it were joined to the adjacent 200 acre property.
However, the adjacent property would benefit only minimally from the addition of the subject property to
its overall size. Given our conclusion that the subject property's Highest and Best Use is based upon
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ioiijoinder, but that its value to an adjoining owner/developer is limited, the unit value per acre is considered
to be significantly lower than the unit value of the adjoining larger property. In our opinion, an adjoining
owner/developer would pay no more than one half the unit value of his larger property for the subject. As
a result, we believe it is appropriate to estimate the joinder value of the subject property at the low end of
the range of selling prices observed for the sales used in developing an opinion of value of the adjacent
parcel, or $65,000 per acre.
Subject Joinder Value 6.67 Ac x $65,000/Ac $433,550
Rounded: $435,000
VALUE OF SUBJECT BASED ON DEVELOPABLE AREA
In order to develop an additional indicator of subject value, the appraisers considered two of the sales used
in the Sales Comparison Approach for the adjacent 200 acre property. Both of these sale properties are
relatively small in size like the subject property, and both have only small developable areas. Both are in the
immediate subject area. They were identified as Sales 6 and 7 in our previous analysis.
Sale 6 was the sale of an approximately 17.54 acre parcel of land on El Camino Real. Topographical,
biological habitat and overhead utility line considerations reduced this area to 8.77 net developable acres
on the property. The selling price was $2,900,000, or a little over $330,000 per net acre. This property is
located on El Camino Real, it had utilities immediately available and it was prime for development as of the
date of sale. It sold in August 1998, and 35 single family residences have been built on the property and
sold.
Sale 7 was an approximately 11.5 acre sheet graded property at the corner of Glasgow Drive and Carlsbad
Village Drive. Infrastructure requirements are expected to reduce the developable area to 10 acres, and the
buyer intends to construct 100 to 150 residential units on the property. The selling price was $3,200,000,
or $320,000 per developable acre. This property was commercially zoned as of the date of sale, but the
buyer (McMillin Companies), who owns all of the surrounding area, expects no difficulty in obtaining a re-
zoning of the property to permit residential development as part of the Calavera Hills master planned
community. This property fronts on two paved streets, has utilities immediately available and is prime for
development.
The subject property is raw, unimproved land with no mapping either existing or in process. Both paved
streets and utilities would have to be extended more than a mile in order to permit development of the
parcel. As a result, the near term development potential of the property is considered to be minimal. Both
of the sale properties noted above are substantially superior to the subject in terms of their paved street
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PIaccess, on site improvements, their immediate availability of utilities and their near term development
potential. As a result, both of these sale properties are considered to be vastly superior to the subject in
terms of their per net acre values.
The per net acre selling prices of these two properties were $330,000 and $320,000, respectively. Given
the degree to which they are superior to the subject, we have concluded that the value of the net
developable area of the subject property is no more than $200,000 per acre. It is likely that a buyer or
developer would pay no more than that amount per net acre considering the subject's physical and sensitive
biological development constraints.
The appraisers have not been provided with mapping which indicates the exact developable area of the
subject property. We have, however, reviewed maps provided by the city of Carlsbad which indicate that
approximately 20%, or about 1.3 acres, of the property has been used for agriculture. This area is relatively
level, and is considered the most developable portion of the site. This area has also been identified by Bill
Dumka of Rick Engineering as an area which could be developed with cluster residential units in a
development bubble comprising about 1.5 acres. We believe that a developer could negotiate for the
development of at least a small portion of the sensitive habitat portion of the site, but we do not believe that
more than a total of two acres should be considered to be developable. Using these parameters, the value
of the subject property based on its developable area can be calculated as follows.
Value Based on Developable Area ... 2 Ac x $200,000/Ac $400,000
RECONCILIATION OF SUBJECT VALUE
The two methodologies addressed in the preceding paragraphs suggest a subject value in the range of
$400,000 to $435,000. Since this acquisition is being made under California eminent domain law, and the
definition of market value specifies the highest price likely to be paid, we have concluded at the upper end
of that range.
Market Value of the Subject Property $430,000
It is our understanding that the city of Carlsbad is considering acquisition of the entire subject property as
a potential mitigation site for anticipated future sensitive land impacts associated with constructing the
extensions of Cannon Road and College Boulevard. Since this is a full acquisition, only the value of the
whole is relevant. The concepts of remainder, severance damages and benefits do not apply.
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Market Data Addenda
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LAND COMPARABLE
SUMMARY AND ANALYSIS
PROPERTY INFORMATION Subject 6
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L
Buyer
Owner/Seller
^roperty Location
Proximity to Subject
Assessor Parcel Number
Date
Property Description (On-Sltee)
_»nd Area (Gross Acres)
Land Area (Net Acres)
Zoning
Land Use
Net Density
Gross Density
Mapping Status at Date of Sale
Proposed Use/
Highest & Best Use
Comments
Price
Per Acre (Gross Acres)
Robertson Trust
North Side Calaveras Drive.
NE of El Camlno Real,
Carlsbad
168450-17
04/27/2000 (A/V)
Raw Undeveloped Land
197.75
110.00
LC-Limited Control Zone
Low/Medium (LM) Residential
4 Units /Acre
2.5 Units /Acre
No Maps
Based on a recent land use study,
502 Residential Units are
projected for the subject Net of
affordable housing, this equates
to 4 units per net acre, and
to 2.5 units per gross acre.
Bendy-Monarch, LLC
Cantartnl Trust
North Side of El Camino Real,
.25 mile north of College Blvd.
Carlsbad
.75 Mile East
209-070-01 and 02
Open Option / Escrow
Raw Undeveloped Land
147.00
111.00
LC - Limited Control Zone
Low/Medium (LM) Residential
1(.) Units/Acre
.68 Units/Acre
Processing Tentative Map
Residential Subdivision - 100 Units
Buyer has had an option to
purchase for approximately
two years. There are
habitat (wetland areas) that
reduced the devtopabte acres.
111,760,000
$80,000
Western Pacific Housing, LLC
Deer Ridge/Canyon Vtow/Osbome
Appro* 1 Mile west of Carmel
Mountain Road and Sundance Ave.
San Diego (North City West)
25 MHes Southeast
306-051-04, 05, and 08
01/05/00; 12/22/99; 01/21/2000
Raw Undeveloped Land
117.73
75.00
Phase Shifted/ Med. Density Reskrtl.
Medium Density Residential
3.76 Units/Acre
2.40 Units /Acre
Processing Tentative Map
Residential 235 SFRs / 47 MFUs
Buyer processed a plan amendment
and tentative map to develop the
property with tow/medium density
housing units. The site has habitat
Issues; utility lines & Coastal Sage.
$23.700,000
$201,308
Standard Pacific Corporation
Pacwest Holdings, LLC
West Side Avlara Parkway,
at Cobblestone Road
Carlsbad
3 Miles South
212-040-41
08/31/98
Undeveloped Land w/Off-site Imprv.
54.00
30.00
R1 - Residential
Low/Medium Residential
5 Units/Acre
2.8 Units/Acre
Approved Tentative Map
Residential Subdivision - 150 Units
Final Map was achieved shortly
after sale, and development of
150 SFR units is nearly completed.
No Habitat Issues.
Good views from the site.
$16,931.000
$313,537
Shea Homes, LP
Wuest Estate Company
North and South side of Scrlpps
Poway Parkway, East of Hwy 1-15
San Diego (NW Scrlpps Ranch)
35 MHes Southeast
315-040-45 through 47
319-150-01,15, and 16
01/05/99
Raw Undeveloped Land
246.95
153.25
Master Planned
Low/Medium Residential
5 Units/Acre
3 (-) Units/Acre
No Maps
Mixed Use - Office, SFRs, MFUs
Buyer has processed a final map
to develop the property wtth a
mixed use development- Primarily
Single Family and Multi-Family units,
wtth commercial, office, & retail uses.
$15,283.000
$61,887
Greystone Homes, Inc.
Rancho Penasquttos Partners
West of Sundance Ave., and
Entreken Way, San Diego
San Diego (North City West)
25 MHes Southeast
306-041-06.19,20, and 21
Currently In Escrow
Raw Undeveloped Land
97.80
76.80
Phase Shifted/ Med. Density ResidU.
Medium Density Residential
4 Units /Acre
3.2 Units/Acre
No Maps
Residential 234 SFRs
The buyer is processing a tentative
for 234 SFRs, and 76
affordable housing units.
The site has habitat areas that
reduced the developable acreage.
$20,600,000
$210,634
Carlsbad 35, LLC
Athalon Properties, Inc.
South Side of El Camlno Real,
.75 mile east of Kelly Drive
Carlsbad
Across the Street
208-040-06 through 10
09/11/98
Raw Undeveloped Land
17.54
8.77
RA-10,000
Low /Medium Residential
4 Units/Acre
2 Units/Acre
Approved Tentative Map
Residential Subdivision - 35 Units
Final Map was achieved shortly
after sale, and development of
35 SFR units Is completed. The site
had habitat and slope areas that
reduced the developable acreage.
$2,900,000
$165.336
Calavera HHIs 11, LLC
Calavera HHIs Dvetopment, LP
SEC Carlsbad Village Drive,
and Glasgow Drive
Carlsbad
1 Mile Northwest
168-041-08
09/29/99
Sheet Graded w/ Off-site Improvments
11.50
10.00
C - Commercial
Being Re-Zoned
Residential; Density 10-15 Un./Ac.
No Maps / Being Re-Zoned
Cluster Residential (10-15 Units/Acre)
Buyer is processing a re-zone of
the property, to develop a cluster
housing project on the site at the
higher density noted above.
$3.200.000
$278,261
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COMPARABILITY ANALYSIS
Conditions of Sale/Market:
Property Rights
Financing
Condition of Sale
Market Conditions
Physical Characteristics:
Location
Size (Gross Acres)
Physical Condition of Land (On-Sltes)
Entitlements
Development Timing
Density /Yield
Utilities
Access / Off-Site Improvements
Fee Simple
April 2000
Good
197.75
Raw Undeveloped Land
No Maps or Development Plans
3 Plus Years
Residential (low/Medium) 2.5 Un./Ac.
Available to the Site
No paved Roads or Off-sites
Similar
All cash
Arms length
Similar (Open Option)
Similar
Generally Similar
Similar
Slightly Superior
Similar
Inferior
Slightly Inferior
SI. Inferior
Similar
All cash
Arms length
Similar
Superior
Slightly Superior
Similar
Superior
Superior
Generally Similar
Slightly Inferior
Slightly Inferior
Similar
All cash
Arms length
Inferior
Superior
Superior
Similar
Considerably Superior
Considerably Superior
Generally Similar
Slightly Superior
Superior
Similar
All cash
Arms length
Inferior
Inferior
Generally Similar
Inferior
Superior
Similar
Generally Similar
Similar
Superior
Similar
All cash
Arms length
Similar (Current Escrow)
Superior
Slightly Superior
Similar
Superior
Superior
Generally Similar
Slightly Inferior
Slightly Inferior
Similar
All cash
Arms length
Inferior
Similar
Considerably Superior
Similar
Superior
Considerably Superior
Generally Similar
Similar
Similar
Similar
All cash
Arms length
Similar
Superior
Considerably Superior
Superior
Superior
Considerably Superior
Substantially Superior
Slightly Superior
Superior
Net Overall Adjustment Inferior Considerably Superior Vastly Superior Inferior to Cons. Inferior Considerably Superior Superior to Cons. Superior Vastly Superior
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* Considers Net to Gross Acres, Topography, Biological Habitat constraints, units per gross acre.
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LAND COMPARABLES MAP
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LAND SALE NO. 1
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Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status•
•
Utilities:
Access/Offsites:
Improvements:
Option Price:
Terms:
Transaction:
Buyer:
Seller:
LAND SALE NO. 1
North side of El Camino Real, 1/4 mile north of College Boulevard, CA
92008
1107-D7
209-070-01 and 02
147.00 gross acres; 1 1 1.00 net acres; irregular rectangle.
Generally level and gently rolling hillsides.
: LC - Limited Control Zone (Residential uses permitted); The density
permitted is low to medium (4 units to the acre). This property is being sold
as raw, undeveloped land, with no entitlements. The buyer is processing a
tentative map for 100 residential units to be built on half acre lots. The
density of this proposed development is approximately one unit per acre
gross and .68 units per acre net.
Public water, sewer, telephone, natural gas and electric are located along El
Camino Real, and are available to the property.
The property is accessible from El Camino Real via easements across
intervening properties. Off-site improvements which include sidewalks,
curb/gutters, storm drains, and street lights, are installed and located along
El Camino Real.
Older, small single family dwelling that contributes minimal value to the
property, and will be razed prior to development.
$11,760,000 ($80,000/acre)
N/ANot disclosed directly, though a cash transaction is likely according to
the source.
Document Number: Option to Purchase.
Recording Date: N/A
Bently-Monarch, LLC
Cantarini Trust
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Confirmed by: David Bently, Buyer, (March/April 2000)
Comments: This property is located in close proximity to the subject property,
approximately 3A miles to the east. The buyer indicated that there has been
an "open ended" option to purchase for approximately two years. The
original option amount was in the range of $60,000 per acre on the basis of
raw undeveloped land with no entitlements. At the present time the buyer
is processing a tentative map for 100 residential units, to be built on half acre
lots. The current option price was reported to be approximately $80,000
per acre. It was also reported that this property has areas constrained by
biological habitats (wetland areas and Diegan Coastal Sage Scrub). These
areas were generally netted out of the gross land area to reflect net
developable land area per current mapping being processed on the property.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
LAND SALE NO. 2
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Location:
Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status
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-
Utilities:
Access/Offsites:
Improvements:
Sale Price:
Terms:
Transaction:
LAND SALE NO. 2
Approximately one mile west of Carmel Mountain Road and Sundance
Avenue, San Diego, CA 92 129
1188-J5
306-051-04, 05, and 08
Approximately 117.73 gross acres; 75 net acres; three contiguous parcels
with square configurations. Each parcel comprises approximately 39 acres.
Generally level with steep sloping hillsides
: A- 1 - 1 0, included in the Torrey Highlands Community Plan, Subarea IV, of
the North City Future Urbanizing Area (NCFUA). The zoning permits one
...: • . .unit per 10 acres, or a clustered development with a density of one unit per
:.:_ four acres with a Planned Residential Development (PRD). This property
sold as raw, unentitled land with no mapping or other development
approvals.
A phase shift to planned urbanizing has been approved by San Diego voters
allowing densities to Jive units per acre on the property. The property will
ultimately be developed at this density, and the purchase price was based on
this density. A tentative map has been processed based on a density of 5 (+)
units per acre net, and 3.6 units per acre gross.
All public utilities will be extended to the property as development
progresses to this property's location.
Access to the property is from an unpaved fire road which extends from the
western terminus of Sundance Avenue, west of Carmel Mountain Road.
None.
$23,700,000 ($201,308/acre) Refer to comments on the following page.
All Cash Sale
Document Number(s): 1999-827846; 2000-005202; 2000-032398
Recording Date(s): 12/22/1999; 01/05/2000; 01/21/2000
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Buyer:
Seller(s):
Confirmed by:
Comments:
Western Pacific Housing - Torrey Santa Fe, LLC
Deer Ridge Investors, LTD; Parcel No.306-051-04
Canyon View Investors, LTD; Parcel No. 306-051-05
Gerald and Ingrid Osborne. Parcel No. 306-051-08
Greg Sandstrom, Buyer's representative, (March/Apil 2000)
David Santistevan, Agent, Colliers International; (Reconfirmed March 2000)
This comparable comprises three contiguous parcels that were purchased by
one buyer, to be assembled into one larger parcel, and land planned into an
integrated economic unit. There were three sale contracts that had different
sale prices and separate close of escrow dates. It was reported that Parcel
306-051-08 sold for $6,700,000; Parcel 306-051-04 sold for $7,000,000;
and Parcel 306-051-05 sold for $10,000,000.
It was reported that large areas in the southern portions of each parcel are
located in the environmental tier of the NCFUA and/or the proposed
Multiple Species Conservation Plan preservation area. These areas do not
provide a density benefit to any proposed developments. The Subarea plan
for the northern portions of these properties are identified for use as a "Joint
Operation Center" for the City; however, it was reported that the buyer has
.processed a plan amendment to change this area to a low density residential
use. The buyer plans to ultimately develop the property with 271 residential
lots, and 150 multi-family units.
Since the date of purchase, a tentative map has been submitted for approval.
Maps were being processed during escrow and the purchase price was based
on a net density of 5 (+) units per acre.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
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LAND SALE NO. 3
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Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status
»
Utilities:
Access/Offsites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Seller:
LAND SALE NO. 3™~
West side of Aviara Parkway, at Cobblestone Road, Carlsbad, CA 92009
1127-A4
212-040-41
54 gross acres; 30 net acres; irregular rectangle configuration.
Gently rolling to steep hillsides.
: R-l (Residential); the density permitted is low to medium (4 units to the
acre). This property sold as raw, undeveloped land, with an approved
tentative map for 150 single family dwelling units. This equates to a
density of 5 units per acre net, and 2.8 units per acre gross. Since the
date of sale, development of the site with the single family dwelling units
is nearly completed.
Public water, sewer, telephone, natural gas and electric are located along
Aviara Parkway, and are available to the property.
There is direct access to the site from Aviara Parkway. Off-site
improvements which include sidewalks, curb/gutters, storm drains, and
street lights, are installed and located along Aviara Parkway.
None.
$16,931,000 ($313,537/acre)
All Cash Sale
Document Number: 1998 - 553443
Recording Date: 08/3 1/1998
Standard Pacific Homes Corporation
Pacwest Holdings, LLC
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Confirmed by: Greg Linhoff; buyer's representative, (March/April 2000)
Comments: It was reported that a final map for the development of a 150 unit
subdivision, "Shore Pointe," was achieved shortly after the close of
escrow. The gross acreage of this parcel was reduced to 30 net acres,
due to hill side slopes constraints. At the present time, development and
construction is in process on the 150 unit subdivision, with many of the
new homes having good views of the surrounding area and ocean to the
west.
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LAND SALE NO. 4
•3r1»-SBs* •"»** «*»?«, /r<^ »•"•> "jSsjo- Mfi\, ^^Jjurt,, ^«-l
Ol
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Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status
Utilities:
Access/OfTsites:
Improvements:
LAND SALE NO. 4
North and South side of Scripps Poway Parkway, immediately east of
Interstate 15, (Northwest Scripps Ranch Area) San Diego, CA 92131
1189 -F7
.
315-040-45, 46 and 47; 319-150-01, 15, and 16
246.95 gross acres, 153 net acres; six parcels (three contiguous parcels
on the north side of the road, and three contiguous on the south side of
the road ) with generally rectangular configurations.
Primarily rolling to steeply sloping hillsides.
: A-l-10; The zoning permits one unit per 10 acres, or a clustered
development with a density of one unit per four acres with a Planned
Residential Development (PRO). This property sold as raw, unentitled
land with no mapping or development approvals. According to the
confirming source, a re-zone and approved master plan was achieved for
this property shortly after the close of escrow. It was reported that the
buyer had been processing the master plan and maps for over a year prior
to the close of escrow.
A phase shift to planned urbanizing has been approved by San Diego
voters allowing densities to five units per acre on the property. The
property will ultimately be developed at this density, and the purchase
price was based on this density. A tentative map has been processed
based on a density of 5 (+) units per acre net, and 3.6 units per acre
gross.
Public utilities (water, sewer, telephone, natural gas and electric) can be
extended to the sites from Scripps Poway Parkway.
There is direct access from Scripps Poway Parkway, which is a paved
major thoroughfare in the area. At the time of sale, off-site improvements
(sidewalks, curb/gutters, storm drains, or street lights) were installed
along Scripps Poway Parkway.
None.
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Sale Price: $15,283,000
Terms: All Cash Sale.
($61,887/acre)
Transaction: Document Number: 99-004122
Recording Date: January 5, 1999
"
Buyer: Shea Homes (LP)
Seller: Wuest Estate Company.
Confirmed by: Ryan Green, Project Manager, buyer's representative, (March 2000).
Comments: The buyer intends to develop the property with commercial, retail, and
office uses on the north side of Scripps Poway Parkway, and with single
family dwellings (300 units) and multi-family housing units (150
condominium
present time,
units) on the south side of Scripps Poway Parkway. At the
site development is currently in process on the property
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HENDR1CKSON APPRAISAL COMPANY INC Real Estate Appraisers » Consultants
LAND SALE NO. 5
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WE:SA VERDE MIDDLE SCHOOL
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Location:
Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status
Utilities:
Access/Offsites:
Improvements:
Sale Price:
Transaction:
Buyer:
Seller:
LAND SALE NO. 5
West of Sundance Avenue and Entreken Way, San Diego, CA 92129
1189-B4
306-041-06, 19, 20 and 21
Approximately 97.80 gross acres, 76.80 net acres; four contiguous
parcels with irregular/rectangle configurations.
Level with sloping hillsides and canyon areas.'
: A-l-10, included in the Torrey Highlands Community Plan, Subarea IV,
of the North City Future Urbanizing Area (NCFUA). The zoning permits
one unit per 10 acres, or a clustered development with a density of one
unit per four acres with a Planned Residential Development (PRD). This
property sold as raw, unentitled land with no mapping or other
development approvals. A phase shift to planned urbanizing has been
approved by San Diego voters allowing densities to five units per acre on
the property.
There are no utilities to the site. Public utilities (water, sewer, telephone,
natural gas and electric) are available from Sundance Avenue and
Entreken Way, and can be extended to the site as development occurs.
Access to the property is possible from the western terminus of Sundance
Avenue, onto an unpaved trail / fire road. Existing off-site improvements
(sidewalks, curbs/gutters, storm drains, and street lights) terminate at the
end of Sundance Avenue and Entreken Way.
None.
$20,600,000 ($210,634/acre)
Currently in Escrow (Projected to close at the end of 2000)
Greystone Homes, Inc.
Rancho Penasquitos Partners
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Confirmed by: David Steam, Greystone Homes, April 2000.
Comments: This comparable is located immediately west of the Rancho Penasquitos
Community Plan area, just west of the ends of Sundance and Entreken
Avenues.
The tentative map being processed by the buyer is for approximately 234
single family residential units, and 76 affordable multi-family housing
units. Excluding affordable housing units and the area being set aside for
affordable units, the density per gross acre is 4 and the net density is 3.2
units per acre. According to the confirming source there are
approximately 20.90 acres of environmentally sensitive areas (vernal
pools) that reduced the developable acreage.
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LAND SALE NO. 6i
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Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status
Utilities:
Access/Offsites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Seller:
LAND SALE NO. 6
South side of El Camino Real, at Crestview Drive, % mile east of Kelly
Drive, CA 92008
1107-A7
208-040-06, 07, 08, 09, and 10
17.54 gross acres, 8.77 net acres; irregular configuration.
Level and gentle rolling hills.
RA-10 (Residential/ Agricultural); the density permitted is low to medium
"(4 units to the acre). This property sold as raw" undeveloped land, with
an approved tentative map for 35 single family dwelling units. Since the
date of sale, development of the site with the 35 single family dwelling
units is completed. This equates to 2 units per gross acre and 4 units per
net acre.
Public water, sewer, telephone, natural gas and electric are located along
El Camino Real, and are available to the property.
There is direct access to the site from El Camino Real. Off-site
improvements which include sidewalks, curb/gutters, storm drains, and
street lights, are installed and located along El Camino Real.
1
None.
$2,900,000 ($165,336/acre)
All Cash Sale
Document Number: 1998 - 578363
Recording Date: 09/1 1/1998
Carlsbad 3 5, LLC
Athalon Properties, Inc.
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Confirmed by: Kent Grover, buyer's representative, (March 2000)
Comments: This property is located in close proximity to the subject property. It was
reported that a final map for the development of a 35 unit subdivision,
"Hidden Ridge," was achieved shortly after the close of escrow. The
gross acreage of this parcel was reduced to 8.77 net acres, due to
environmental, hillside slopes, and overhead utility line constraints. At
the present time, development and construction is completed on the 35
unit subdivision.
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LAND SALE NO. 7
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
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Location:
Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status:
Utilities:
Access/Offsites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Seller:
Confirmed by:
LAND SALE NO. 7
Southwest corner of Carlsbad Village Drive, and Glasgow Drive,
Carlsbad, CA 92008
1107-B4
168-041-08
11.50 gross acres, 10 net acres; rectangular shaped site.
Level
C (Community Commercial); the density permitted is low to medium (4
units to the acre). This property sold as undeveloped land with sheet
graded topography and no approved maps.
Public water, sewer, telephone, natural gas and electric are located along
Glasgow Drive, and are available to the property.
There is direct access to the site from Glasgow Drive. Off-site
improvements which include sidewalks, curb/gutters, storm drains, and
street lights, are installed and located along Glasgow Drive. Off-site
improvements are not installed on Carlsbad Village Drive and on the
future extension of College Boulevard along the property's east property
boundary..
None.
$3,200,000 ($278,261/acre)
All Cash Sale
Document Number: 1999 - 661913
Recording Date: 09/29/1999
Calavera Hills II, LLC (McMillin Companies)
Calavera Hills Development, (LP)
Jeff Brazel, buyer's representative, (March 2000)
A-22
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Comments: According to the confirming source, the buyer, Me Millin Companies,
owns several large acreage parcels that surround this property and are
part of a large master planned community commonly known as "Calavera
Hills." The buyer is in the process of obtaining a re-zone of this property
to permit the development of cluster / courtyard housing units with a
density in the range of 10 to 15 units to the acre. It was reported that the
net acreage will be approximately 10 acres, after necessary off-site
improvements are completed.
A-23
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
General Addenda
A-24
HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
I I I I ft. J t J I J I I j
ROBERTSON RANCH
Alternative) A (wfih school & payment of fee to mitigate coastal sage Impacts)
YIELD ANALYSIS
APN 108-050-17 (197.75 Gross Acres)
DEVELOPMENT
PARCEL
A
B-1
B-2
B-4
C-1
Total
DEVELOPMENT
ACREAGE
acres
18.0
78.0
18.0
15.0
5.0
132.0
DENSITY
dwellings/acre
3.1
3.1
4.1
4.1
15.0
YIELD
dwellings
50
242
74
62
75
502
TYPICAL
PHODUCT
600Osf plus lots
eooosf plus lots
sooosf - eooosf lots
SOOOsf - 6000s! lots
affordable wa«c-up garden apartment surface parking
average density (excluding affordable) 3.4 du/ac •»/-
3,4
ROBERTSON RANCH
Alternative B (with school and preservation of 75% of coastal sage - no mitigation fee)
Y?ELD ANALYSE
APN 168-050-17 (197.75 Gross Acres)
DEVELOPMENT
PARCEL
A
B-1
B-2
B-4
C-1
Total
DEVELOPMENT
ACREAGE
acres
12.0
42.0
31.0
10.0
5.0
100.0
DENSITY
dwellings/acre
4.1
3.1
4.1
12.0
15.0
YIELD
dwellings
49
130
127
120
75
502
TYPICAL
PRODUCT
SOOOsf - SOOOsf lots
6000s! plus lots
SOOOsf - 6000sf lots
muttifamity, covered parking, recreation faciXies
affordable walk-up garden apartment,1 surface parking
average density (excluding affordable) 4.6 du/ac +/-
4.5
i i t i i ,* t i t j 11 i i i i 11 t i
Robertson Ranch Constraints Analysis (with School)
APN 168-050-17 (197.75 Gross Acres)
General
Pbn
Designation
RM.
Gross
Acres
197.8
Acres of Development Constraints
Fun
A
2.8
B
12.5
C
1.5
D
10.0
E
1.0
Total
30.8
Partial
F
20.0
F/2
10.0
Net
Developable
Acres
157.0
Control
Point
3.2
Total
Dwellings
Alowad
502.2
Total Dwellings 502.2
15% Affordable Housing 75.3
Robertson Ranch Constraints Analysis (without School}
APN 168-050-17 (107.75 Gross Acres)
General
Plan
Designation
RML
Gross
Acres
197.8
Acres of Development Constraints
Ful
A
2.8
B
12.5
C
4.5
0
0.0
E
1.0
Total
20.8
Partial
F-
20.0
F/2
10.0
Not
Developable
Acres
1B7.0
Control
Point
3.2
Total
Dweings
Allowed
534.2
ToKal Dwelings 534.2
15% Affordable Housing 80.1
A = Major Power Line Easement
B = Cannon Rd. & College Blvd. Right Of Way
C f. FEMA Roodway
D « Sdiool
E = Slopes over 40%
F * Slopes 25% - 40%
5/18/00
ROBERTSON RANCH
YIELD ANALYSIS
Alternate A (Habitat Mitigation Fee)
Parcel A: Assumed minimum 6000 square foot single family residential lots at an
average density of 3.1 dwellings per acre. 100 foot buffer assumed adjacent to riparian
area. Assumed that east and south edges of development area will be filled as required to
raise them above any flood potential.
Parcel B-l: Assumed minimum 6000 square foot single family residential lots at an
average density of 3.1 dwellings per acre.
Parcel B-2: Assumed minimum 5000 square foot single family residential lots at an
average density of 4.1 dwellings per acre. Assumed that south edge of development area will
be filled as required to raise it above any flood potential.
Parcel B-3: Assumed 10 acre elementary school site
Parcel B-4: Assumed minimum 5000 square foot single family residential lots at an
average density of 4.1 dwellings per acre. Assumed that south edge of development area will
be filled as required to raise it above any flood potential.
Parcel C-1: Assumed two story walk-up garden apartments with surface parking at a
density up to 20 dwellings per acre affordable to "lower income households". These
dwellings satisfy the City of Carlsbad inclusionary housing requirement of 15% of the totalunits.
Parcel C-2: Assumed a two acre site for a not-for-profit facility such as a pocket park/tot
lot in partial satisfaction of City of Carlsbad Community Facilities requirements for Master
Plans.
Parcel C-3: Assumed a two acre site for a for-profit Day Care Center in partial
satisfaction of City of Carlsbad Community Facilities requirements for Master Plans. Thisparcel together with parcel C-2 satisfies total Community Facilities requirement.
Alternate B (Habitat Preservation')
i edges of development area will be filled as required to
raise them above any flood potential.
Parcel B-l: Assumed minimum 6000 square foot single family residential lots at an
average density of 3.1 dwellings per acre.
Parcel B-2: Assumed minimum 5000 square foot single family residential lots at an
average density of 4.1 dwellings per acre. Assumed that south edge of development area
will be filled as required to raise it above any flood potential.
Parcel B-3: Assumed 10 acre elementary school site
Parcel B-4: Assumed attached multi-family residential units at an average density of 12
dwellings per acre. Cover parking and private recreation facilities would serve this product.
Assumed that south edge of development area will be filled as required to raise it above any
flood potential.
Parcel C-1: Assumed two story walk-up garden apartments with surface parking at a
density up to 20 dwellings per acre affordable to "lower income households". These
dwellings satisfy the City of Carlsbad inclusionary housing requirement of 15% of the total
units.
Parcel C-2: Assumed a two acre site for a not-for-profit facility such as a pocket park/tot
lot in partial satisfaction of City of Carlsbad Community Facilities requirements for Master
Plans.
Parcel C-3: Assumed a two acre site for a for-profit Day Care Center in partial
satisfaction of City of Carlsbad Community Facilities requirements for Master Plans. This
parcel together with parcel C-2 satisfies total Community Facilities requirement
Additional Assumptions: ,
1. Alcernative A assumes that impacts coastal sage habitat will be mitigated through
payment of a fee. Alternative B assumes that encroachment into coastal sage habitat
will limited to 25% of the coastal sage habitat and no fee will be required.
2. Right-of-way provided for Cannon Road and College Boulevard.
3. : Area has been reserved for detention facilities north of the intersection of Cannon
Road and College Boulevard.
4. Assumes that au direct impacts to riparian areas are avoided.
5. Northwest comer of property, whicn contains power line casement, canyon and
related steep slopes, set aside for habitat corridor.
6. Yield based on gross density analysis. No specific site development design has
been prepared. Ifcnsity assumptions are typical in San Diego County for the type
of residential development assumed (although multifamily densities are at the low
end of the density range for these product types).
5/18/00
Y/e/d Ano/ys/s
A/fernaf/Ve A
Robertson Ranch
APN 168-050-17
197.75 Gross Acres
Yield Analysis
A/fern ofiVe B
Robertson Ranch
APN 168-050-17
197.75 Gross Acres
TED G. HENDRICKSON. MAI PROFESSIONAL QUALIFICATIONS
Ted G. Hendrickson, MAI is the president and principal valuation expert of Hendrickson Appraisal
Co., Inc., a mid sized appraisal firm specializing in valuation of properties to be acquired by
Government agencies. Mr. Hendrickson has 25 years of experience as a real estate appraiser and
consultant, primarily specializing in valuation of properties to be acquired under the power of
eminent domain. Mr. Hendrickson has been involved in appraisal, coordination and review of multi-
parcel acquisition appraisals for the California Department of Transportation, SANDAG, MTDB,
Immigration and Naturalization Service and the Port of San Diego. Mr. Hendrickson is a qualified
expert witness, having given testimony in the Superior and Federal Court system. Mr. Hendrickson
has also served as valuation expert and arbitrator in arbitration hearings involving lease
negotiations with the Port of San Diego and in other public and private corporate real estate
matters.
Mr. Hendrickson's appraisal experience includes valuation for the following property types:
commercial, retail, office, industrial, residential, multi-residential, vacant unentitled land and
subdivision land with detailed highest and best use analysis, and special use properties. He has
extensive experience in "part take" analysis involving consideration of severance damages and
special benefits. When appraisals are completed by appraisal staff of Hendrickson Appraisal
Company, Inc. (staff appraisers average 15 years appraisal experience) Mr. Hendrickson thoroughly
reviews their work, field inspecting all subject properties and comparables.
Mr. Hendrickson holds the highest designation in the appraisal field, the MAI designation. He is past
President of the San Diego Chapter of the Appraisal Institute and currently serves on the Regional
Standards and Ethics Review Board. He is also active in the International Right of Way Association.
• HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants •
fjf
APPRAISAL EXPERIENCE:
QUALIFICATIONS
TED G. HENDRICKSON, MAI
1986-Present Hendrickson Appraisal Company, Inc.
President; Real estate appraiser, reviewer, consultant, analyst, and expert witness
Full range of Appraisal/Consulting services, including mediation and arbitration services
Right of Way Eminent Domain Valuation Specialist
1984-1986 Independent Appraiser specializing in appraisal and feasibility analysis of commercial,
industrial, offices, multi-phased subdivisions and income properties.
1973-1983 Home Federal Savings and Loan Association:
1973-1979 - Appraiser Analyst specializing in appraisals of subdivisions, commercial, retail
centers, office and industrial properties.
1979-1983 • Appraisal Dept. Manager, Vice President. Responsible for reviewing and
appraising commercial, residential, and industrial properties.
1970-1973 California Department of Transportation. Staff appraiser specializing in valuation of
- residential and commercial properties for right of way eminent domain purposes.
EDUCATION; Undergraduate and post graduate professional studies
California State University, Northridge • B.S. degree in Real Estate Finance
Appraisal Institute Courses and Seminars: (Courses
Industrial Appraising
Appraisal of Income Properties
Investment Analysis
Capitalization Theory
Litigation Testimony
Skills of Expert Testimony
Real Estate Risk and Analysis
Discounted Cash Flow Analysis
Valuation of Partial Interests
Subdivision Analysis and Feasibility
Analysis of Money Market Rates
Standards of Professional Practice
taken at various universities throughout the U.S.)
Valuation of Easements
Impact of Hazardous Substances on Real Estate
Highest and Best Use Analysis
Market Land Use Analysis
Financial Forecasting
Environmental and Biological Issues
Cost Analysis
Master Planned Communities/Land Planning
Mitigation Land Analysis
Cash Equivalency
Valuation of Lease Interests
Eminent Domain Law
University of Southern California (Graduate School of Business)
University of Washington (Graduate School of Business)
PROFESSIONAL; Membership and Service
MAI Designation (#6603) with the Appraisal Institute
California Certified General Appraiser (AG004974)
California Real Estate Broker's License (#530471)
Member of the San Diego Board of Realtors (#7407)
Member of the International Right of Way Association (# 1148112)
Member of the Professional Ethics, Review and Counseling Committee of the Appraisal Institute
Chairman of several Appraisal Institute committees
Past President of the San Diego Chapter of the Appraisal Institute
COURT EXPERIENCE; Qualified Expert Witness
Testified in California State Superior Court and U.S. Federal Court
Testified in Arbitration and Mediation Proceedings • government agencies and private corporations
• HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants -
flf
QUALIFICATIONS
EDWARD A. BEAVER
APPRAISAL EXPERIENCE:
1987-Present Associate Appraiser, Hendrickson Appraisal Company, Inc.
Residential: Appraisal of all types of residential properties ranging from small senior citizen
condominiums to large custom estate properties, both existing and proposed. Appraisal of all
types of residential properties for public acquisition under eminent domain law including full
and partial fee acquisitions, permanent and temporary easement acquisitions and analysis of
just compensation for severance damages and special benefits.
Income property: Appraisal and appraisal review of large residential income properties.
Appraisal of multi-phased planned industrial land properties, vacant land intended for multi-
unit residential properties, improved industrial properties, commercial/retail properties,
proposed residential subdivision properties and appraisal of leasehold interests. Appraisal of
complex commercial and residential income properties for public acquisition under eminent
domain law including full and partial fee acquisitions, permanent and temporary easement
acquisitions and analysis of just compensation for severance damages and special benefits.
Experience includes giving sworn testimony during arbitration proceedings.
PROFESSIONAL:
Advanced Candidate for MAI membership in the Appraisal Institute.
State of California Certified General Appraiser #AG009555.
EDUCATION:
Elmhurst College. Elmhurst. Illinois B.S. degree in Mathematics.
National University. San Diego. California MBA degree with emphasis in Computer Management.
Appraisal Institute Courses/Seminars:
Basic Valuation Procedures Standards of Professional Practice A
Standards of Professional Practice B Capitalization Theory and Techniques A
Capitalization Theory and Techniques B Case Studies in Real Estate Valuation
Appraising from Blueprints and Specifications
Planning and Land Use
Apartment Appraisals Appraisal Regulations of the Federal Banking
Agencies
Blueprint Reading OREA Laws and Regulations
Environmental Risk and the Appraiser Applying Economic Forecasts
Master Planned Communities Property Profile of Operating Expenses
Apartment Seminar Update Easement Valuation
• HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants -
QUALIFICATIONS
MIKE BARAJAS
APPRAISAL EXPERIENCE:
1990-Present Hendrickson Appraisal Company. Inc.
Associate; Real estate appraiser, consultant, and analyst
providing a full range of Appraisal/Consulting services.
1987-1990 San Diego Community College District
Instructor, Principles of Real Estate Appraisal
1985-1990 Great American Appraisal Services:
Senior Commercial Appraiser specializing in appraisal of subdivisions, office,
commercial, apartment projects, and industrial properties.
1977-1985 ' Home Federal Savings and Loan Association:
1983-1985 • Senior Appraiser specializing in appraisals of subdivisions,
commercial, office, apartment projects, and industrial properties.
1977-1983 • Residential Appraiser specializing in appraisals of residential
properties, 1 to 4 units, and apartment projects, 5 units and above.
EDUCATION: Undergraduate and post graduate professional studies
National University. San Diego: Bachelors Degree - Business Administration - 1982
Appraisal Institute (formerly-American Institute of Real Estate Appraisers):
Standards of Professional Practice - Parts A and B
Course 1A-1/8-1; Real Estate Appraisal Principles
Course 1A-2; Basic Valuation Procedures
Capitalization Theory and Techniques; Part A
Capitalization Theory and Techniques; Part B
Highest and Best Use Analysis Seminar
Rates, Ratios, & Reasonableness Seminar
Federal Home Loan Bank Board's Memorandum R-41b Seminar
Appraisal Institute (formerlv-Societv of Real Estate Appraisers):
Course 101; Introduction to Appraising Real Property
Course 201; Principals of Income Property Appraising
Federal Home Loan Bank Board's Memorandum R41-C Seminar
Narrative Report Writing Seminar
PROFESSIONAL:
State of California General Real Estate Appraiser (AGO 18401)
OTHER EXPERIENCE: Proficient Real Estate Analyst, using Lotus 1-2-3, Quattro Pro, and
Argus software programs for Discounted Cash Flow Analysis and Lease by Lease Analysis.
Extensive experience in appraising for litigative matters.
• HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants •
HENDRICKSON APPRAISAL COMPANY. INC.
Hendrickson Appraisal Company, Inc. is a mid sized appraisal firm that was incorporated in
1986 to provide professional consultation on matters relating to valuation of real estate and real
property. The firm specializes in valuation of multiple parcels to be acquired under the power of
eminent domain. Included in this valuation discipline is appraisal of partial right of way
acquisition properties, with consideration of damages and special benefits, the value of
temporary and permanent easements, construction contract work, signage valuation, and before
and after analysis.
Appraisers within the firm provide valuation consultation and expert witness testimony relating
to several legal matters involving: eminent domain property acquisitions, estate matters, real
property misrepresentation matters and partnership disputes, bankruptcy and foreclosure
matters, and diminution of value matters involving construction defects, soils subsidence and
hazardous waste issues. In addition to court testimony, arbitration and mediation services are
provided to facilitate settlement on valuation issues, as appropriate.
The firm specializes in appraisal of office buildings including mid and high rise office complexes,
neighborhood retail centers, regional power centers, industrial properties, restaurants, auto
service, multi-use properties, special use properties, large vacant land holdings, many of which
involve sensitive habitat issues, and residential subdivision and golf course oriented planned
residential developments. Detailed sensitivity analysis, including discounted cash flow analysis
on income producing properties (offices, retail and industrial) and multi-phased residential
subdivision cash flow analysis, is a specialty area of the firm.
In addition to valuation of properties based upon their highest and best use as developed from
market analysis, Hendrickson Appraisal Company, Inc. provides consulting services relating to
alternative uses for various properties, under differing use scenarios.
Following is a brief summary of the organization of the company. Ted G. Hendrickson, MAI, the
principal valuation expert within the firm has 25 years of appraisal experience, primarily
oriented toward commercial and subdivision appraising. He has extensive expert witness
experience having testified many times in arbitration and court proceedings. Associate
appraisers in the company are MAI's advanced candidates for the MAI designation and are State
of California Certified General appraisers. The average experience level of the firm's staff
appraisers is 10-15 years, with primary emphasis on appraisal of all types of commercial
properties, large land holdings and residential subdivisions at various densities.
• HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants •
PRIVATE CORPORATIONS
Aetna Life Insurance Company
Allstate Life Insurance Company
American Express
American General Life Company
AMRESCO
Apollo Produce Company
Artemis Capital Group
Bank of California
Bank of America
Bank One
Boston Capital
Boyle Engineering
Burnham Pacific
Cal Federal Bank
Cal Pacific Homes
Calif. Transportation Ventures (CVT)
Center Stone Capital Group
Chase Manhattan Bank
Chevron USA
Chiquita Banana Frupac
City Corp. Bank
City National Bank
Coast Fed Bank
Coldwell Banker
Collins Development
Cuyamaca Bank
Donald Bren Company
Eckel Development
Emerson International
Equitable Life Insurance Company
Equitable Real Estate
FCI Constructors
Federal Express
Fieldstone Development
First Interstate Bank
First Interstate Mortgage
First National Bank
Fresh Express International
G.E. Capital
General Electric Mortgage
General Motors
Glendale Federal Bank
GMAC Commercial Mortgage
Guarantee Federal
Goldman Sachs & Company
Home Investment and Loan
Imperial Bank Mutual Insurance
J.P. Morgan
John Hancock
La Salle Bank
Keith Companies
Main America Capital
Massachusetts Mutual Life
McMillin Communities
Metropolitan Life Insurance Company
Midas International
Nationwide Mutual Insurance
Nations Bank
Nations Financial
Pacific Bell
Pacific Mutual Life Company
Pacific Southwest Mortgage
Pacific Homes
Pathfinder Mortgage
Peninsula Bank
Prebys Development
Prudential Insurance
RBF & Associates
Safeco Insurance of America
Scripps Bank
SDG&E
Sempra Energy
Sickles Development
Southern California Bank
Steres, Alpert and Carne
Sumitomo Metal Mining
Sun America
Sunroad Enterprises
Tokai Bank
Union Bank
Von's Companies
Washington Mutual Bank
Western Bank
Wells Fargo Bank
• HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants-
GOVERNMENT AGENCIES
California Dept. of Transportation
Cathedral City Redevelopment Agency
Centre City Development Corp. (CCDC)
City of Carlsbad
CityofElCajon
City of Encinitas
CityofEscondido
Cityoflndio
City of National City
City of Oceanside
City of Palm Desert
City ofPoway
City of Rancho Mirage
City of San Diego
City of San Marcos
City of Santee
City of Temecula
City of Vista
County of Riverside
County of San Diego
County of Los Angeles
Department of the Navy
Department of Fish and Game
Gilespie Field Airport
F.D.I.C.
Immigration and Naturalization Service
Internal Revenue Service
L.A. County Beaches & Harbors
Metropolitan Transit District Board (MTDB)
Montgomery Field Airport
National City Comm. Devel. Comm. (CDC)
Otay Water District
Palomar Airport
Riverside County Transportation Comm.
San Diego Community College District
San Diego Unified Port District
San Diego Association of Governments
San Diego Unified School District
Southeast Econ. Development Corp. (SEDC)
U.S. Army Corp. of Engineers
Los Angeles/ Sacramento/ Albuquerque
Wildlife Conservation Board
U.S. Marshall
LAW FIRMS
Asaro, Keagy, Freeland & McKinley
Adams, Duque and Hazeltine
Best, Best and Krieger
Borton, Petrini, & Conron
Brobeck, Phleger and Harrison
Circuit, McKellogg, Kinney and Ross
Daley and Heft
Detisch and Christensen
Duke, Gerstel, Shearer and Bregante
Duckor, Spradling and Metzger
Gray, Gary, Ware, and Freiderich
Harris & Reedhead
Higgs, Fletcher and Mack
Hilding, Kipnis, Lyon, and Kelly
Hillyer and Irwin
Hovey, Kirby and Thornton
Hyde and Waters
Luce, Forward, Hamilton and Scripps
McDougal, Love, Eckis, and Grindle
Mclnnis, Fitzgerald, Rees, and Sharkey
Mower, Koeller and Nebeker
Nevenszehl, Cohn, Davies, and Leff
Post, Kirby, Noonan and Sweat
Robins and Keehn
Sandier and Rosen
Schall, Boudreau and Gore
Sonnenchein, Nath and Rosenthal
Stephenson, Worley, Garrat, Schwartz,
Heidel, and Prairie
Thorsnes, Bartolotta, McGuire, and Padilla
Tuttle and Taylor
Weeks, Rathbone, Robertson and Johnson
• HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants -