HomeMy WebLinkAbout3338; Agua Hedionda & Calavera Creek Dredging; Agua Hedionda Wetland Mitigation Site Parcel 9 PM 15608; 2009-07-02SUMMARY APPRAISAL REPORT 5.57+/- ACRES WETLANDS MITIGATION SITE PORTION PARCEL 9, P M 15608 CARLSBAD, CALIFORNIA APPRAISED FOR Mr. John Cahill CITY OF CARLSBAD 1 63 5 Faraday Avenue Carlsbad, CA 92008 DATE OF VALUATION June 30,2009 DATE OF REPORT July 2,2009 APPRAISED BY Anderson & Brabant, Inc. 353 West Ninth Avenue Escondido, California 92025 File No. 09-052
ANDERSON & BRABANT, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 353 W. NINTH AVENUE ESCONDIDO, CALIFORNIA 92025-5032 TELEPHONE (760) 741-4146 FAX (760) 741-1049 July 2,2009 Mr. John Cahill CITY OF CARLSBAD 1635 Faraday Avenue, Carlsbad, CA 92008 RE: Appraisal of Wetlands Mitigation Site 5.57+/- Acre Portion of Parcel 9, Parcel Map 15608 (Portion of APN 168-361-02) Carlsbad, California 92010 Dear Mr. Cahill: As requested, we have estimated the value of a 5.57+/- acre parcel of land in Carlsbad, California within the "Robertson Ranch Panhandle Parcel (PA 23E)" that is proposed for wetlands mitigation purposes. The site is located on the northeast side of College Boulevard, just northwest of the easterly terminus of Cannon Road, and west of Calavera Creek, in Carlsbad, California. The purpose of this appraisal is to estimate the market value of the subject parcel as of June 30,2009. As agreed, our findings and conclusions are set forth in a Summary format as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). Thus, it is intended to comply with the reporting standards set forth under Standard Rule 2-2(b) of USPAP for a Summary Appraisal Report. After a thorough investigation and analysis of appropriate data as they relate to the subject, we have formed the following opinion of value for the land, as of the above referenced date: The primary assumption on which our estimated value is based is that the site will be granted 5.57+/- acres of coastal wetlands credits fiom all required regulatory agencies, based on a ratio of one credit per acre, with 1.87 credits for creation and 3.70 credits for enhancement on the subject property. Total $416,000 $74,686 3.70 Acres Enhancement $129,500 $35,000 Estimated Value Per Acre 1.87 Acres Creation $286,500 $153,209
Mr. John Cahill City of Carlsbad Page 2 July 2,2009 The opinion of value expressed herein is subject to certain assumptions and limiting conditions as set forth in the attached report. Respectfully Submitted, Brian L. Flannery u State Certification No. AGO 17627 Gilbert F. Kunkel, MA1 State Certification No. AGO02 10 1
Coastal Wetlands Mitigation Site; 5.57+/- Acres . Por . of Parcel 8. PM 15608. Carlsbad, CA TABLE OF CONTENTS ......................................................................................................... EXECUTIVE SUMMARY 1 ................................................................. ASSUMPTIONS AND LIMITING CONDITIONS 2 ........................................................................... APPRAISERS' SIGNED CERTIFICATION 5 INTRODUCTION Identification of the Property ................................................................................................... 6 Purpose of the Assignment ...................................................................................................... 6 Effective Date of Value Opinion ............................................................................................. 7 Date of Report ......................................................................................................................... 7 Intended Use and User ............................................................................................................. 7 Property Rights Appraised ...................................................................................................... 7 Valuation Premise ................................................................................................................... 7 Extraordinary Assumptions ..................................................................................................... 7 Hypothetical Conditions .......................................................................................................... 8 ......................................................................................................................... Scope of Work 8 Report Option .......................................................................................................................... 9 Sales History of the Subject Property ...................................................................................... 9 Location Map ......................................................................................................................... 10 Location Description ............................................................................................................. 11 DESCRIPTION OF THE SUBJECT PROPERTY Subject Property Photographs ................................................................................................. 14 Site Map ................................................................................................................................... 15 Land Description ..................................................................................................................... 19 Improvement Description ........................................................................................................ 23 Assessment Data ...................................................................................................................... 23 VALUATION Highest and Best Use ............................................................................................................... 24 Valuation Methodology ........................................................................................................... 25 Sales Comparison Approach ................................................................................................... 25 Summary and Conclusion of As-Is Value ..................................................................................... 36 ADDENDA Title Report Conservation Easement Deed (Portion of) Qualifications of the Appraisers Anderson & Brabant. Inc .
Coastal Wetlands Mitigation Site; 5.5 7+/- Acres. Por. of Parcel 8, PM 15608, Carlsbad, CA EXECUTIVE SUMMARY Property Location: The site is located on the northeast side of College Boulevard, just northwest of the easterly terminus of Cannon Road, and west of Calavera Creek, in Carlsbad, California, 920 10 Owner of Record: Calavera Hills 11, LLC, a California Limited Liability Company Assessor Parcel No.: Portion of 168-361-02-00 Thomas Bros. Map Code: 1 107-C5/C6 Property Type: Coastal Wetlands Mitigation Site Interest Appraised: Fee Simple Parcel Size: Land Use: Flood Zone: 5.57+/- acres within a larger 38.74 net acre parcel under common ownership. 0s ( docun Calavl Manaj enhan activil Open Space), City of Carlsbad; The controlling lent is a Conservation Easement Deed granted by era Hills 11, LLC to the Center for Natural Lands gement which allows for wetlands habitat cement, restoration, creation, and management :ies within the easement. Flood Zone A, 100-Year Floodplain, per NFIP Map Nos. 06073C766F and 06073C768F, dated June 19, 1997. It is specifically located within the floodplain of Calavera Creek. Earthquake Fault Zone: No Toxic Hazards: None noted Interest Appraised: Fee simple estate Highest and Best Use: Wetlands mitigation Date of Valuation: June 30,2009 Date of Report: July 2,2009 Estimated "As-Is" Market Value: Exposure Time: Twelve months Estimated Value Per Acre Special Assumptions: (see page 2) Anderson & Brabant, Inc. I 1.87 Acres Creation $286,500 $153,209 3.70 Acres Enhancement $129,500 $35,000 Total $416,000 $74,686
Coastal Wetlands Mitigation Site; 5.57+/- Acres. Por. of Parcel 8, PM 15608, Carlsbad, CA ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is subject to the following special assumptions and limiting conditions: 1. This is a Summary Appraisal Report which is intended to comply with the reporting standards set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. As such, it presents summary discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraisers' opinion of value. In some instances, supporting documentation concerning data, reasoning, and analyses has been retained in the appraisers' file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraisers are not responsible for the unauthorized use of this report. 2. The subject of this appraisal is a 5.57+/- acre area within the 100-Year Floodplain/Floodway of Calavera Creek, and it is a portion of a larger landholding owned by Calavera Hills, LLC. It is an assumption of this report that the 5.57+/- acres can be conveyed as if a separate, legal parcel. 3. We were provided with a copy of a preliminary title report relating to the subject prepared by Chicago Title Company of San Diego dated February 19, 2009 and identified by reference to Order No. 930014348-U50. A copy of the title report is included in the Addenda to this report. The document describes various utility, pipeline, drainage, and ingress and egress easements granted to various entities, including the City of Carlsbad, the Carlsbad Municipal Water District, Oceanside Municipal Water District, SDG&E, the County of San Diego, and private parties. The Title Report describes all of Lot 9 of Robertson Ranch East Village, Carlsbad Tract No. 02-16, Map No. 15608, of which the subject is a 5.57+/- acre portion. The most significant easement is a Conservation Easement Deed encumbering portions of Lot 9 that was recorded February 22, 2007 as Instrument No. 2007-01 19540 of Official records, and re-recorded March 1, 2007 as Instrument No. 2007-0140005 (to remove one of the Grantor's duties that does not apply to the subject property). A copy of Map 15608 that shows the location of the conservation easement and other easements encumbering Lot 9 is included in the addenda to this report. The Conservation Easement was granted by the property owner, Calavera Hills 11, LLC, in favor of the Center for Natural Lands Management, a non-profit entity formed under the laws of the State of California and authorized to hold conservation easements. The conservation easement is for "habitat enhancement, restoration, creation activities, and adaptive management practices that are consistent with the Purpose of this Conservation Easement." An assumption of this appraisal is that any easements or encumbrances on the subject parcel have been accounted for in the granting of the Conservation Easement and that they do not have a detrimental impact on the value or use of the property as a wetlands creation, restoration, and enhancement mitigation site. 4. The primary assumption on which our estimated market value is based is that the subject will receive approvals fiom all required regulatory agencies to create and enhance 5.57+1- acres of coastal wetlands habitat on the site, with one wetlands mitigation credit granted per acre. Anderson & Brabant, Inc. 2
Coastal Wetlands Mitigation Site; 5.57+/- Acres. Por. of Parcel 8, PM 15608, Carlsbad, CA 5. Specific cost information for creating and enhancing coastal wetlands habitat was not available. Based on a range of cost estimates provided by market participants, for purposes of this appraisal we have assumed the costs of wetlands Creation at $150,000 per acre and the costs of wetlands Enhancement at $35,000 per acre. 6. The valuation premise for the subject property is the as-is physical condition but with approval for 5.57 mitigation credits, consisting of 1.87 credits for creation and 3.70 credits for enhancement. This appraisal is subject to the following general assumptions and limiting conditions: 1. It is assumed that information furnished to us by our client, including maps, cost estimates, and legal descriptions, is substantially 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 specified. 3. It is assumed that the property is readily marketable, free of all liens and encumbrances except any specifically discussed herein, and under responsible ownership and management. 4. Photographs, plat, and maps firnished in this appraisal are to assist the reader in visualizing the property. No surveys of the property have been made and no responsibility has been assumed in this matter. 5. It is assumed that there are no legitimate environmental or ecological reasons that would prevent the continued use of the property or orderly development of the land as though vacant to its highest and best use under economically feasible conditions. 6. For purposes of this appraisal, it is assumed that there are no hidden or unapparent conditions of the property such as hazardous or toxic wastes and/or other subsoil conditions, which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering, which might be required to discover such factors. 7. We are not qualified to detect hazardous waste and/or toxic materials. Any comment by us that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. Our value estimates are predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. Our descriptions and resulting comments are the result of the routine observations made during the appraisal process. 8. Disclosure of the contents of this appraisal report is governed by the by-laws and regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially reference to the Appraisal Institute or the MA1 designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media, or any other public means of communication without prior written consent and approval of Anderson & Brabant, Inc. Anderson & Brabant, Inc. 3
Coastal Wetlands Mitigation Site; 5.5 7+/- Acres. Por. of Parcel 8, PM 15608, Carlsbad, CA 9. The submission of this report constitutes completion of the services authorized. It is submitted on the condition that the client will provide the appraiser customary compensation relating to any subsequent required depositions, conferences, additional preparation or testimony. 10. The valuation estimate is of surface rights only and the mineral rights, if any, have been disregarded. 1 1. No warranty is made as to the seismic stability of the subject property. 12. It is assumed that all required licenses, certificates of occupancy, or other legislative or administrative authority from any local, state, or national governmental or private entity or organization can be obtained for any use on which the value estimates contained in this report are based. Anderson & Brabant, Inc. 4
Coastal Wetlands Mitigation Site; 5.57+/- Acres. Por. of Parcel 8, PM 15608, Carlsbad, CA APPRAISERS' SIGNED CERTIFICATION We do hereby certify that, to the best of our knowledge and belief ... 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, are our personal, unbiased professional analyses, opinions and conclusions. 3. We have no present or prospective future interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. 4. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. Our compensation for completing this assignment is not contingent upon the developing or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared. in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, which includes the Uniform Standards of Professional Appraisal Practice. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. Brian L. Flannery and Gilbert F. Kunkel, MA1 made a personal inspection of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the persons signing this certification. Brian L. Flannery State Certification No. AGO1 7627 July 2,2009 Date 11. As of the date of this report, I have completed the continuing education program of the Appraisal Institute. && 1 bert F. Kunkel, &Lf~ MA1 State Certification ~6. AGO02 101 July 2,2009 Date Anderson & Brabant, Inc. 5
Coastal Wetlands Mitiaation Site: 5.57+/- Acres. Por. of Parcel 8, PM 15608, Carlsbad, CA INTRODUCTION IDENTIFICATION OF THE PROPERTY The subject is comprised of a 5.57+/- acre undeveloped portion of a larger 38.74 net acre parcel. It is located in Carlsbad, California on the northeast side of College Boulevard, about 525+/- feet north of the easterly terminus of Cannon Road. It lies west of, and is within the 1 00-year floodplain/floodway, of Calavera Creek. Legal Description We were provided with a copy of a Preliminary Title report prepared by Chicago Title Company, dated February 19, 2009, that provided the legal description of the larger parcel of which the subject is a portion as follows: Lot 9 of Robertson Ranch East Village, Carlsbad Tract No. 02-16, in the City of Carlsbad, County of San Diego, State of California, according to Map thereof No. 15608, filed in the Office of the County Recorder of San Diego County, September 18, 2007. The subject property can also be identified as a 5.57+/- acre portion of APN 168-36 1-02-00. Ownership Title to the subject property is currently held as follows: Calavera Hills, LLC, a California Limited Liability Company. PURPOSE OF THE ASSIGNMENT The purpose of this appraisal is to estimate the Market Value of a 5.57+/- acres portion of APN 168-361-02-00, assuming its use for coastal wetlands mitigation as of June 30,2009. MARKET VALUE "Market Value is defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well-informed or well-advised, and each acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."' ' The Appraisal of Real Estate, 12Ih ed. (Chicago: Appraisal Institute, 2001), p. 23 Anderson & Brabant, Inc. 6
Coastal Wetlands Mitigation Site; 5.57+/- Acres. Por. of Parcel 8, PM 15608, Carlsbad, CA The value estimate reflects a reasonable exposure time for the subject parcel estimated at twelve months. According to the Uniform Standards of Professional Appraisal Practice, Exposure Time is defined as the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. EFFECTIVE DATE OF VALUE OPINION The effective date of the opinion of value expressed herein is June 30,2009. DATE OF REPORT This date of the appraisal report is July 2,2009. INTENDED USE AND USER The intended use of this report is to assist the client, the City of Carlsbad, in determining the market value of the 5.57+/- acre parcel for wetlands mitigation purposes. Any other party who may receive this report is not an intended user, and we are not responsible for unauthorized use of this report. PROPERTY RIGHTS APPRAISED The appraised value pertains to the fee simple interest or estate in the subject property. The definition of fee simple estate is as follows. "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~cheat."~ VALUATION PREMISE The valuation premise for this appraisal is the as-is physical condition of the subject property but with approval for 5.57 mitigation credits, consisting of 1.87 credits for creation and 3.70 credits for enhancement. EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is something that is assumed to be true, but is not certain. An extraordinary assumption of this report is that the subject site qualifies for 5.57+/- coastal wetland mitigation credits. Without that qualification, the value does not apply. This appraisal is also subject to certain special and general assumptions as outlined on pages 2 through 4 of this report. The Appraisal of Real Estate, 12Ih ed. (Chicago: Appraisal Institute, 2001), p. 69 Anderson & Brabant, Inc. 7
Coastal Wetlands Mitigation Site; 5.57+/- Acres. Por. of Parcel 8, PM 15608, Carlsbad, CA HYPOTHETICAL CONDITIONS Hypothetical conditions are known to be false, but are presumed to be true for the purpose of reasonable analysis. It is an assumption of this report that the land that constitutes the area of the 5.57+/- acre site can be conveyed as if a separate, legal parcel, and that the property has approval for 5.57 mitigation credits. SCOPE OF WORK The indicated values expressed in this appraisal report reflect the property condition as it physically and economically exists on the effective date of value. In preparing this appraisal, we took the following steps. Inspected the subject property on May 7,2009, at which time photographs were taken. We have conducted a survey of the subject property and surrounding area in order to accurately define the appraisal problem and identify the methods and techniques necessary to accomplish the objective of this appraisal report. Given the physical and legal characteristics of the subject property, including the fact that it is encumbered with a conservation easement created specifically to ensure that it will be maintained in perpetuity as a coastal wetlands mitigation site, it has, fiom the outset of this appraisal, been established that the highest and best use of the subject is associated with its use for wetlands habitat creation, restoration, and enhancement. We reviewed a study done by the environmental planning firm of Glenn Lukos Associates, Inc regarding the use of the subject property for coastal wetlands habitat mitigation. This study essentially confirmed that such a use of the subject was feasible both from a physical and technical perspective. Our research proceeded with the investigation of the wetlands preservation and mitigation market for evidence of market demand and prices. This investigation confirmed sufficient demand for wetlands property for use in mitigation for impacts to similar wetlands at prices much higher than any other potential use of the subject could garner. The three traditional approaches to value include the Cost, Sales Comparison, and Income Approaches. Of these three the Sales Comparison Approach and a limited Cost Approach were considered to be the only pertinent methods in the analysis of the subject property. The Income Approach was not considered applicable or useful in the valuation process as we have sought land value only. Upon determination of highest and best use, reliable market data were analyzed on the basis of their overall degree of comparability to the appraised property. In order to derive an estimated as-is market value for the subject property, we first estimate the market value of the property as though it is an established wetlands mitigation site, having met the five year criteria for approval by federal and state regulatory agencies, with management in place, consisting of 1.87+/-acresof created wetlandslriparian habitat, and 3.70+/- acres of enhanced wetlandslriparian habitat. From this "as-if complete" market value we then deduct the estimated costs of transforming the property fiom its current, as-is, raw condition into the approved and established wetlands mitigation site. --- Anderson & Brabant, Inc. 8
Coastal Wetlands Mitigation Site; 5.57+/- Acres. Por. ofParcel8, PM 15608, Carlsbad, CA The final step entailed the organization and drafting of the summary appraisal report. REPORT OPTION This is a Summary appraisal report as defined by USPAP in accordance with Standards Rule 2-2(b). A Summary Report presents a concise presentation of all data, reasoning, and analyses used in the appraisal process to develop the opinion of value. SALES HISTORY OF THE SUBJECT PROPERTY According to public records, the subject was not involved in a conventional sale transaction within the three year period that precedes the date of value. Anderson & Brabant, Inc. 9