HomeMy WebLinkAboutCT 06-15; TABATA RANCH; APPRAISAL; 2012-08-01li
APPRAISAL ef an Approximately
2.90 Grou Acre Parcel of Land
Wlthia the Tabata Ranch SNbdIvition
Located oa the North Side of Poinicttia Lane
at itt iBterMCtiea with CryttalHiic Drive
Carbhoil,CA 92011
DATE OF VALUE
July 31,2012
DATE OF REPORT
AiigMtt 1,2012
APPRAISED FOR
Gregg Harrington
Real Ettaters Ca
Tabata Family Trust
City of Caritbad
APPRAISED BY
HeadricktoB Appraital Co., Inc.
3530 Camino del Rio North, Suite 205
San Diego, CA 92108
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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lUlENDRICKSON
APPRAISAL COMPANY, INC.
Real Estate Appraisers • Consultants 3530 Camino del Rio North • Suite 205 • San Diego, Califomia 92108 • (619) 282-0800 Fax (619) 282-1471 www.henclricksonappraisal.com
August 1,2012
Gregg Harrington Mr. Brandon Miles
Real Estaters Ca City of Carlsbad
P.O. Box 679 Carlsbad 1635 Faraday Avenue
Carlsbad, CA 92018 Carlsbad, CA 92008
Reference: Appraisal of an approximately 2.90 gross acre parcel of land within Tabata Ranch,
located on the north side of Poinsettia Land at its intersection with Crystalline Drive in
the City of Carisbad, CA
Our File No. 2012159
Dear Mr. Hamngton and Mr. Miles,
At your request and authorizatkm, tfae above referenced property and its environs have been inspected and
analyzed for the purpose of formulating an opinion of the market value of Ihe subject property, to assist the subject
property owners ui acquiring fee title to an area of slope easement currently owned by the City ofCarlsbad.
The subject property was appraised to develop an opinion of the current market value of the easement
enciunbrance currently held by the City. It is our understanding that the acquisition of diis easement area from
the City will allow the pioperty owners, who are currently processing plans for an eight tot (five homesites and
three HOA parcels) residential subdivision on the property, to increase the usable size of three ofthe homesites.
The pioperty owners will also assume the responsibility for maintenance and ufkeep of the entire easement area
being acquired. This appraisal updates a previous an>raisal completed by our firm wiA an effective date of value
of April 1,2008.
The following summary appraisal report, of which this letter is a part, describes the facts and reasoning upon
whkh ow opinion is based. The analysis and fmal report have been prepared in coBH>liance with Stamlards Rule
2-2(b) ofthe Uaifom Standards of Professional Appraisal Practice as adopted by the Appraisal Foundation and
also of die Code of Ediics and Standards of Professional Practice of ^ Appraisal Institute.
Based upon our investigations and analysis, it is our opinion Uiat the nuiket vahie ofthe City's easement rights
in a slope area to be acquired by the Tabata Family Trust, as of July 31, 2012, was:
$26,000
TWENTY THOUSAND DOLLARS.
Thank you for thi$ opportunity to bc of service. Please call at your convenience should you have questions or if
we may be of further assistance.
Respectfully submitted,
Ted G. Hendrickson, MAI Mark J. Hendrickson
California Certified General Appraiser Califomia Licensed Appraiser
AG004974 AT041338
TABLE OF CONTENTS
TITLE PAGE 1
LETTER OF TRANSMITTAL 2
TABLE OF CONTENTS 3
SUMMARY OF SALIENT FACTS AND CONCLUSIONS 4
ASSUMPTIONS AND LIMITING CONDITIONS 5
CERTIFICATION 7
INTRODUCTION 8
LOCATION MAP H
AREA DESCRIPTION 12
PLAT MAP 14
SUBJECT PHOTOGRAPHS 15
DESCRIPTION OF THE SITE 18
TENTATIVE MAP 21
EASEMENT VACATION-Map 22
EASEMENT VACATION- Legal Descriptioii 23
HIGHEST AND BEST USE 24
VALUATION ANALYSIS 27
DESCRIPTION OF THE PART TO BE ACQUIRED 33
ADDENDUM A-I
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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LOCATION:
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
North side of Poinsettia Lane at its intersection with Crystalline Drive in the
City ofCarlsbad, CA 92011
PROPERTY
IDENTIFICATION:
LARGERPARCEL
ASSESSORS PARCEL
NUMBERS (APNs):
OWNER OF RECORD:
DATE OF VALUE:
SITE DATA:
Size:
Zoning
Land Use:
IMPROVEMENTS:
HIGHEST AND
BEST USE:
The subject property comprises three contiguous legal lots located on the
north side of Poinsettia Lane between Lonicera Street and Lemon Leaf
Drive in Carlsbad, CA.
The three legal lots being analyzed are contiguous, all have the same zoning
and land use designations, and are all held in the same ownership. Thus they
satisfy the requirements of being considered a "larger parcel", and we have
completed our analysis on that basis.
The three parcels are identified as Assessor's Parcel Numbers: 214-630-20,
214-631-20, and 214-631-21.
Nobora and Evelyn Tabata, co-trustees of the Tabata Family Trust.
July 31, 2012
Approximately 126,304 square feet (2.90 Acres). The size of the parcel was
extracted from Assessor's data. Plans currently being processed identify the
site as having 2.17 net devek^ble acres.
R-l: Single-Family Residential, City of Carisbad, minimum lot size of
7,500 square feet.
RLM: Residential Low-Medium Density, allows a maximum density of 4
units per acre.
One of the subject legal lots is currently in^roved with a single story, 2,103
square foot residence that, according to Assessor's data, was constructed in
1974.
As If Vacant - Residential subdivision.
As Improved - Residential subdivision.
CONCLUDED OPINION OF MARKET VALUE:
Value of the Whole Property $1,575,000
Value of the Easement Area to be Vacated $20,000
HENDRICKSON APPRAISAL COMPANY, DMC. Real Estate Appraisers • Consultants
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report is prepared subject to the following conditions and stipulations:
(1) The appraisers were provided a copy of a Title Report prepared by First American Title Insurance
Company and dated August 22, 2011. The legal description provided therein is assumed to be
correct.
(2) No responsibility is assumed for matters legal in character, nor do we remler an (pinion 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 property is readily maricetable and free of all liens aoA encumbrances except
any specifically discussed in this report.
(4) Information, estimates, and qjinions fumished by others and contained in this repixt are assumed
to be true, conrect, and reliable. A reasonable effort has been made to verify such infonnation;
however, no responsibility for its accuracy is assumed by the appraisers. Phc^graphs, plats, and
maps fiiraidied in this report are intended to assist the reader in visualizing the property.
(5) No soils or geotechnical investigati(m report was pro\idsd by the client. As an assimiption of this
analysis, it is presumed that there are no hidden or uns^parent ccmditions ofthe property, subsoil,
or structmvs which would render it more ot less valuable than otherwise compan^le jmiperties.
No reqxMisilHlity is assumed for such ccmditicHis or for engineering which mig^t be required to
discover such factors. The apfnaisers are not qualified to analyze said conditions, and urge the
client to retain an expert in this field.
(6) No (pinion is rendered as to the value of sub-surface gas, oil or mineral rig^s, or whether the
property is subject to surface entry for the exploration or removal of such materials, except as is
expressly stated in this i^^miisal report.
(7) All opinions of value are presented as the a|:^)raisers' considered opinion, based upcMi the facts and
data set forth in this report. The appraisers assume no responsibility for changes in maricet
conditions nor the inability of the owner to locate a purchaser within a reasonable time at the
appraised market value.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
(8) It is assumed that there are no leghimate environmental or ecological reasons that would prevent
orderly development of the land to its highest and best use under economically feasible conditions.
(9) Testimony or attendance in court or other hearing by reason of this appraisal, with reference to the
property in question, shall not be required unless arrangements have previously been made with
the client a reasonable amount of time in advance, 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 standard hourly rate.
(10) By acceptance and use of this report, the user agrees that any liability for error, omissions or
judgement ofthe appraisers is Umited to the amount ofthe fee charged for the aj^raisal. Anyone
acting in reliance upon the opinions, judgements, conclusions or data contained herein, who has
the potential for monetary loss due to this reliance is advised to secure an independent review and
verification of aU such conclusions uid/or facts. The user agrees to notify the appraiser, jmor to any
loan or irrevocable investment decision, of any errw which could reasonably be determined fircrni
a thorough and knowledgeable review.
(11) The date of value to which the opinions exfMvssed in this report apply is set forth in the letter of
transmittal. The appraisers assun^ no re^nsibility for economic or physical factors occurring at
some later date which may affect the (pinions herein ^ted. The appraisers reserve the ri^t to
make such adjustments to the analyses, 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.
(12) The projections included in this report are used to assist in the valuation process and are based on
current market conditions, and anticipated short term siq^ly and demand factors. Therefore, the
projections are subject to changes in future ccHiditions that cannot be accurately predicted by the
appraisers and could affect the future income or value projectiwis.
(13) 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 die previous written
consent of Hendrickson Appraisal Company, Incorporated.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
CERTIFICATION
1. Certification; The undersigned 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 and are our personal, impartial and unbiased professional analyses, opinions and conclusions.
(3) We have no present or prospective interest in the property that is the subject of this report and no personal interest
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) We have performed no services as appraisers, or in any other capacity, with re^ct to the subject of this appraisal
in the direc years preceding acceptance of this assignment. However, this is an update cfm appraisal completed
by our firm in 2008.
(6) Our engagemcM in this assignment was not contingent upon developii^ or reporting predetermined results.
(7) Our compensation for completing this assignment is not contingent upon the development or reporting of a
predetermined value or direction in value that favors the cause of the client, the amount of tbe value opinion, the
attainment of a stipulated result or the occurrence of a subsequent event directly related to the imended use of this
a^raisal.
(8) The undersigned have made a personal inspection of the property that is the subject of this report.
(9) The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity
with die Code of Professional Ethics and Standards of Professionai Practice of the Appraisal Institute.
(10) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representative.
(11) As of die date of this report, Ted G. Hendricl(son, MAI, has completed the continuing education program of the
Appraisal Institute, and Mark J. Hendrickson has completed the Standards and Ediics Education Requirement of
the Appraisal Institute for Associate Members. Additionally, the undersigned are both licensed Appraisers in the
State of Califomia.
11. Rcitrkti— Un— DiicitMrc and Use; The undersigned MAI appraiser is a Member of die Appraisal Institute. The
Bylaws and Regulations ofthe Institute require all Members to control die use and distnbution of each appraisal
report signed by them. Therefore, the possession of this report, or a copy thereof, does not carry with it the ri^t of
publication, nor may it l>e used for any purpose other than described in the report, without the previous written
consent of Hendrickson Appraisal Company, Inc. .i / //
Ted G. Hendrickson, MAI Mark J. Hendrickson
California Certified General Appraiser California Licensed Appraiser
AG004974 AT04I338
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
INTRODUCTION
IDENTIFICATION OF THE PROPERTY
The subject of this appraisal is an irregular shaped parcel of land that has an approximate gross site area
of 2.90 acres. The subject property is comprised of three contiguous legal parcels. It is located on the north
side of Poinsettia Lane at its intersection with Crystalline Drive in the City of Carlsbad, San Diego County,
State of Califomia. It is situated between Lonicera Street and Lemon Leaf Drive in Carlsbad.
LEGAL DESCRIPTION
The appraisers were provided a copy of a Title Report for the subject property prepared by First American
Tide Insurance Company and dated August 22,2011. The legal description contained in the Title Report
is presented in the addendum to this report.
ASSESSOR'S PARCEL NUMBERS
214-630-20,214-631-20, & 214-631-21
SCOPE OF THE APPRAISAL
The analysis mcluded in this assignment is intended to be an "appraisal" as defined in the Standards of
Professional Practice of die Appraisal Institute, with the results of die analysis, opinions, and conclusions
being that of a disinterested third party.
All appropriate data deemed pertinent to the solution of the appraisal problem was collected, oHifinned,
and reported in conformity with the Uniform Standards of Professional Appraisal Practice of the Appraisal
Foundation. These data include: neighbortiood and district infcmnati<Hi, zoning and land use information,
subject property data, highest and best use data and research, and all market data used in the analysis ofthe
appraisal of this property. The appraisal process is considered to be fully complete and die findings ofthe
fqjpraisal process are reported in an expanded summary api»raisal report that is in con^iliance with
Staiulards Rule 2-2(b) ofthe Uniform Standards of Professional Appraisal Practice
The subject property was inspected on July 31,2012, the effective date of value, by Ted Hendrickstni and
Maik Hendrickson of Hendrickson Appraisal Company, Inc. Previous inspections were also conducted. In
addition to inspecting the subject property, the comparable sale properties, and the surroimding environs
were also inspected.
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HENDRICKSON APPRAISAL COMPANY, DMC Real Estate Appraisers • Consultants
bl an effort to develop an opinion of the subject property's value, a study was conducted to find recent sales
of similar properties located in the subject's immediate market area. The primary source of sales data was
discussions with several knowledgeable brokers who are active in the subject market area, and have been
involved with sale transactions of vacant residential subdivision properties. Other sources researched and
used for market data were CoStar, Inc., a monthly service which summarizes sale activity throughout San
Diego County, die San Diego Realtors' Muhiple Listing Service, and Assessor's recording information.
Each comparable sale property was inspected, and the buyer, seller, and/or broker involved in the sale was
interviewed to confirm the sahent information regarding the transaction. All of the assumptions made
throughout the report have been weU supported by market evidence and/or discussions with knowledgeable
individuals within the area of concem.
This q>praisal report is prepared in conformance and full compliance with the Uniform Standards of Profes-
sional Af^isal Practice (USPAP), as published by the Af^raisal Foundatitm and ad<^ted by the Appraisal
Institute. It is intended throughout this appraisal process that this appraisal be performed in such a manner
that the resuhs of the analysis, opinions, or conclusicMis are that of a disinterested third party.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to provide a current (pinion of market value of a slope easement currently
encumbering the subject property for the purpose of assisting the property owners in acquiring fee
ownership ofthe easement area fi-om the City ofCarlsbad, the easement owner.
DEFINITION OF MARKET VALUE
Msaket value is the most probable price which a prt^rty should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting pruderAly and knowledgeably,
and assuming the price is not affected by imdue stimulus. Implicit in this definitiiHi is the consummation
of a sale as of a specified date and the passing of tide from seller to buyer under condittcms whereby:
1. Buyer and seUer are typically motivated;
2. Both parties are well informed or well advised, and 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 U.S. dollars or in terms of financial arrangements
comparable thereto; and
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
5. The price represents normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
Source: Uniform Standards of Professional Appraisal Practice, Appraisal Foundation, 2012 Edition^,
MARKETING TIME / EXPOSURE PERIOD
The following opinion regarding marketing period for the subject property is based on information
obtained during our market research for this assignment. Based upon numerous discussions with
knowledgeable brokers specializing in parcels of land zoned for residential subdivision uses, as well as
buyers and sellers of similar land, it is our view that the marketing period for the subject property would
likely be approximately six to 12 months, assuming the property is marketed at its market value.
PROPERTY RIGHTS APPRAISED
The property rights ai^aised are the fee simple and easement interests in the subject property.
EFFECTIVE DATE OF VALUE
This appraisal reflects an effective date of value of July 31,2012.
INTENDED USER OF THIS REPORT
This ^praisal is intended for the sole use of the clients: the City of Carlsbad, Gregg Harrington, of Real
Estaters Ca, and his clients, Noboru and Evelyn Tabata, co-trustees of the Tabata Family Trust.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
LOCATION MAP
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AREA DESCRIPTION
San Diego County comprises a total of approximately 4,200 square miles of land at the extreme
southwest comer of both the State of Califomia and the continental United States. It is bounded on the
north by Orange and Riverside Counties, on the east by Imperial County, on the south by Mexico and
on the west by the Pacific Ocean. The largest of the 18 incorporated communities in the region is the City
of San Diego which is located in the southwestern portion of the county, approximately 120 miles
southeast of Los Angeles. According to the 2010 U.S. Census, San Diego County had a population of
3,095,313 people, making it the second most populous county in Califomia, after Los Angeles County.
Caritbad
The City of Carlsbad is located ui north coastal San Diego County, approximately 35 miles north of
downtown San Diego and 87 miles south of Los Angeles. It is bounded on the north by the Cities of
Oceanside and Vista, (m the east by San Marcos, Encinitas and unincorporated San Diego County, on
the soudi by the City of Encinitas and on the west by the Pacific Ocean. Carlsbad was incorporated in
1952 and features a temperate coastal climate and a wide variety of topogriq)hy ranging from inland hills
to coastal bluffs. Carlsbad has approximately seven miles of coastline on the Pacific Ocean, and three
lagoons. The city limits enclose an area of approximately 39 square miles, or apfn-oximately 25,000 acres,
a little over half of whkh is allocated to residential uses at a variety of densities. Another 16% of the land
is designated for non-residential uses including commercial and industrial, and the remainder is set aside
for open space, govemment uses and roads.
The popalatwn in Carlsbad according to the 2010 U.S. Census was 105,328, a 34.6% increase fh>m the
2000Census. The current pojnilation represents about 3.4% of the region as a whole. Riq>id, uncontrolled
growth in Carlsbad in the 1980's caused concern that public facilities would be imable to keep up with
the new residential development. As a result, the City adopted a Growth Management Plan in 1986, and
followed that with a city wide Mello Roos Commimity Facilities District in 1991. The result has been
that facilities fees are now collected earlier in the development process and public facilities
improvements keep pace with development.
Carlsbad is one of the more desirable residential communities in San Diego County. Its coastal location
near other up-scale communities, close proximity to regional employment centers and convenience to
quality retail and recreational services makes this City a highly desirable place to live. As a resuh it is
also one of the communities in the county with the highest median household incomes.
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HENDRICKSON APPRAISAL COMPANY, DMC. Real Estate Appraisers • Consultants
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District Description
The subject property is located in the northwest quadrant of the City of Carlsbad. It is on the north side
of Poinsettia Lane, a little less than a mile east of hs interchange with 1-5. It is in a predominantly
residential area featuring residences of varying ages. Supporting commercial uses are generally located
along the 1-5 corridor to the west and in the master planned community of Aviara which is a short
distance to the east and southeast of the subject.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
PLAT MAP
^ • ; ^ •
214-63
SHT I or 2
r • 100"
2S
M*P 14773-CARLSBAO TCT NO CT 98-14-02 THOMPSON A*8 ATA
I? 09
r - HW
va/tm tt^
MAPI4773-CAWUSBAD tCT NO CT 98-14-02 TMOMPSON/TAeATA S£C 28-T12S-R4W - POft E 1/2 OF NE 1/4
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
SUBJECT PHOTOGRAPHS
Entry to the subject development from Lonicera Street.
Looking west from the south end of the proposed development. The Pacific Ocean is in the
background.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
SUBJECT PHOTOGRAPHS
Looking generally west across Lots 4 and 5. The ocean is in the background.
Looking generally east toward Lots 1 and 2. The old SFR is visible in the background.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
SUBJECT PHOTOGRAPHS
Looking east on Poinsettia Lane. The subject slope easement is to the left.
Looking north toward the slope easement area. The proposed development is at the top of
the bank.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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DESCRIPTION OF THE SITE
LOCATION:
The subject property is located on the north side of Poinsettia Lane at its intersection with Crystalline
Drive in the City of Carlsbad, CA. h is a little less than a mile east ofthe Poinsettia Lane interchange
with 1-5.
THOMAS BROTHERS MAP COORDINATES:
11273
ASSESSOR'S PARCEL NUMBER:
The subject comprises three contiguous parcels identified as parcel numbers: 214-630-20,214-631-20,
& 214-631-21.
ACCESS:
The subject property has two possible means of access. First, it is accessible via its frontage on Lonicera
Street, and second, via the west end of Lemon Leaf Drive which termmates approximately at the subject
property's eastem boundary. Both streets are asphalt paved, interior residential streets with typical offsite
improvements.
SIZE AND SHAPE:
Information relating to the size and shape of the subject parcel was extracted from S^ Diego Ccnmty
Assessor's date. The property is irregular in shape and comprises a total area of approximately 2.90 gross
acres in size. Informati(Mi gleaned from documents relating to a proposed subdivision of the pn^jerty
indicates that the net devek^ble size of the property is 2.17 acres.
TOPOGRAPHY / DRAINAGE:
The site is generally sloping in nature, with some areas of steep downbank, and will require grading in
order to develop homesites on the property. The slope is sufficient to elevate the devel(q)able ptHtion of
the property high enough to afford potential homes in the development distant views of the Pacific Ocean
to the west. Drainage on the site appears to be adequate based on our physical inspection.
ZONING:
The subject property is zoned R-l, Single-Family Residential, by the City of Carlsbad. The intent and
purpose of the R-l, single-family residential zone is to implement the residential low density (RL),
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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residential low-medium density (RLM) and residential medium density (RM) land use designations of
the Carlsbad general plan; and provide regulations and standards for the development of one-family
dwellings and other permitted or condhionally permitted uses. This zone allows for minimum lot sizes
of 7,500 square foot.
LAND USE / GENERAL PLAN:
The General Plan land use designation for the area is RLM, Residential Low-Medium Density, at a
density of up to four dwelling units per acre. A request for a zoning change has been submitted to the
City in conjunction with development plans for the subject property which are currently bemg processed.
UTILITIES:
All typical public utilities are operating either on or adjacent to the subject property, but will have to be
extended to mdividual homesites created as part of the proposed residential development.
STREET IMPROVEMENTS:
Both Lonicera Street and Lemon Leaf Drive are asjAah paved residential streets with typical offsite
improvements in the City ofCarlsbad.
EASEMENTS/ENCUMBRANCES:
The title report provided for the subject property identifies a total of eiglrt easements encumbering die
property, all for road or public utility purposes. One of them is the slope easement in favor ofthe City
ofCarlsbad which the property owner proposes to acquire as part of develqjment of the subject property.
SOIL CONDITIONS:
No soils investigation (geotechnical study) report was provided by the client for die appraisers' review.
Lacking this information, it is assumed as part of this assignment that the soil condition ofthe site is
adequate to support any development with uses permitted under the current land use and zoning
requirement. No evidence of soil subsidence was observed upon inspection, and numerous other sites
in the immediate area have been improved with homes.
FLOOD HAZARD:
The subject property is in an area covered by Flood Insurance Map 060295 103 IF with an effective date
of June 19,1997. The San Diego County hidex Map identifies this flood panel as having not been printed
because the entire area is in white Zone X, which is outside the 500 year floodplain.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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PROPERTY TAXES/ASSESSED VALUES
I'UOI'I K IN 1 A\ SIMM ARN
APN 214-630-20 214-631-20 214-631-21 Totals
Tax Rate Area 09165 09165 09165
Tax Rate 1.07479% 1.07479% 1.07479%
Land Value $479,998.00 $32,440.00 $204,135.00 $716,573.00
Improvement Value $0.00 $76,440.00 $0.00 $76,440.00
Total Assessed Value $479,998.00 $108,880.00 $204,135.00 $793,013.00
Base 1% Tax $4,799.98 $1,088.80 $2,041.35 $7,930.13
Fixed Charges $514.62 $126.58 $187.67 $828.87
2011 /20I2 Taxes $5,314.60 $1,215.38 $2,229.02 $8,759.00
DEVELOPMENT STATUS
The subject property is currently improved with one single family residence that was constructed in 1974
and which is considered to have reached the end of its economic life. The site is rough graded and has
a dirt access road extending up from Lonicera Street to the level building pad area. According to Robert
Furey, of REC engineering, the subject property has an approved tentative m^ in place for five
residential lots. Reportedly the jwoject is very close to final map approval with this easement vacation
being one of the few remaining requirements. The tentative map and easement vacation map and legal
are provided on the following pages.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
TENTATIVE MAP
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EASEMENT VACATION - Map
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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EASEMENT VACATION- Legal Description
EXHIBIT "A"
LEGAL DESCaUPTION
S°O?^TE2*^^*2I ^ ™^ SOUnffiRLY 184.47 FEET OF IHE EASimi Y ,^ rECT OF THE WEST HALF OP THn XTrkaxun A tJ71« CASIBKLY 2O4.14
QUARTBR OF a£n^^ ?2wSS*1f ^.S^^ ™E NORTHEAST
OF CARLSBAD. COUl^Y OF &S3MS^^ IN THE CFTV FOLLOWS: t^ujw, STATE OF CAUFORNIA, DESCRIBED AS
CONTAINING 0.216 ACRES. MORE OR LESS.
HANS PETER CRAIG, PLS 5270
MY LICENSE EXPIRES I2f31/11 DATE:
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HIGHEST AND BEST USE
As used in this report, Highest and Best Use is defined as:
That reasonable and probable use which will support the highest present value as of the date
of the appraisal, and
That use from among reasonably probable and legal altemative uses, found to be physically
possible, appropriately supported, financially feasible, and which results in the highest land
value.
There are two distinct analyses in the highest and best use process; the highest and best use analysis of the
site as if h were vacant, and the highest and best use analysis of the site as if it is improved.
As if vacant, the highest aiul best use could be for immediate development of the property or holding for
future development. The second definition above deals with this scenario.
As improved, the highest and best use analysis considers the possibility of continuing the current use,
conversion to an altemative use or demoUshing the existing improvements and constmcting another use
considered to yield a higher retum to the property. If a site is improved, and the highest and best use is
^termined to be different from the existing use, tt^ existing use will continue until such time as the land
value under the highest and best use scenario exceeds the sum of the value of the existmg property plus
the cost of demolition.
The highest and best use of a property is detennined by social, economic, govemmental, and environmental
forces. The relative weight that each of these forces carries in determining the highest and best use of a
property depends on the individual 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
qualification under the latter criteria would be irrelevant if a use is legally or physically prohibited.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
fg 0
HIGHEST AND BEST USE AS VACANT
Legally Permissible
The subject property is currently zoned R-l, Single-Family Residential, by the City of Carlsbad. The
minimum lot size under this zoning is 7,500 square feet. The permitted uses are single-family homes,
agriculture, and in limited cases, duplexes. All surrounding properties are generally single-family
residential on smaller lots. The general plan land use designation for the area is RLM, Residential Low-
Medium density, which allows for residential uses at a density of up to 4 dwelling units per acre. Any
proposed development that meets the zoning and land use criteria would be considered a legally
permissible use of the property, with single-family residential units being the most likely and conforming.
Physically Possible
The subject property is irregular in shape, but has site dimensions that piotentially give it full utility.
However, the steeper sloping downbank areas on the site reduce the net buildable area, resulting in a lower
density than what is legally permissible. Although it is a sloping site, there is adequate reasonably level
area that individual homesites could be gra^d as part of a residential subdivision. The ^q>raisers are
unaware of any abnoimal site conditions that would require extraordinary site development measures to
develop the prt^rty. We have no reason to suspect that the load bearing capacity ofthe prt^jerty is any
different from surrounding pr(^rties which are already developed to residential uses. Thus, h would be
physically possible to improve the prc^rty with any legal improvements that might reasonably be
proposed, given the slope and downbank on the site.
Financially Feasible and Maximally Productive
We have concluded that develc^ment ofthe subject to a residential use wcnild be b<^ legally pmnissible
and physically possible. The property is located in the coastal area of Calsbad, a highly desirable
residential area, particularly considering that most of all of the homes in a fm^sed subdivision of the
property could have at least minimal views of the ocean a short distance to the west. As a result, even
though the overall residential market in the San Diego area has experienced dramatic declines in value
from its peak in mid 2005, it is our opinion that the market has begun to stabilize and that homes developed
on the subject property would be desirable and would be relatively easy to maricet. Properties offering
potential views of the ocean are limited in number and tend to be more saleable than those without ocean
views. It is our opinion that development of the subject property with a small residential subdivision
represents a financially feasible and maximally productive use of the subject property.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
HIGHEST AND BEST USE AS IF IMPROVED
Legally Permissible
One of the three legal lots comprising the subject larger parcel is currently improved with an older single
family residence that was constracted in 1974. The current improvements are in conformance with the
general plan land use designation, and are considered to be a legally permissible use ofthe property.
Physically Possible
The existing home is situated on the highest portion of the subject property, and there is roughly two acres
of vacant, otherwise usable land on the property. In our analysis of highest and best use as if vacant, we
concluded that it would be physically possible to develop the property with a residential subdivision. The
use ofthe property for one single family residence satisfies the highest and best use of being physically
possible.
Financially Feasible and Maxiawllv Productive
The existing use of the subject property for one single family dwelling is considered to be both legally
permissible and physically possible. It is also considered to be a substantial undemtilization of a 2.90 gross
acre parcel located in coastal Carlsbad, particularly considering that the existing residence is in average
condition at best. The property is in an area in which the land use designation would permit a small
residential subdivision on the property, and develc^ing it in that miuiner would be a more productive use
ofthe site. Thus, it is our opinion that the hi^st and best use ofthe subject property is to remove the
existing home, and subdivide the property into the maximum number of lots the City of Carlsbad will
permit.
RECONCILLiTION OF HIGHEST AND BEST USE
Based on the wialysis presented in the preceding paragr^^hs, it is our opinion that the highest and best use
ofthe subject property is to raze the existing older home on the property, and process plans for a small
residential subdivision on the property.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Mf
VALUATION ANALYSIS
METHODOLOGY
In developing an opinion ofthe market value of a property, there are three generally recognized approaches
to value, the Income Approach, the Sales Comparison Approach and the Cost Approach. In the valuation
of vacant land, only the Sales Comparison approach is relevant.
The Sales Comparison Approach compares the subject property with similar properties which 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
maricetplace.
The subject property is a uniquely desirable property in coastal Carlsbad. It is in an area in which the
underlying land use designation is for medium-low density residential development at a maximum of four
dwellings per acre. The topography of the surroundmg area and the subject property itself is slc^mg
generally upward fiom west to east, so a carefully designed small residential subdivisi(Mi could afford most,
if not all, homes at least a minimal view of the Pacific Ocean in the distance to the west.
The primary source of comparable sales information was data pubUshed by CoStar/Comps. Recent sales
of properties considered similar to the property were investigated, verified, and compared to that property.
When c(Misidering the comparable sales as they relate to the subject, the fast step is to accoiuit for differing
sale and market ctHiditions at date of sale. This is done prior to c(Hisideration of differing i^ysical
characteristks in order to develop an equal basis bom which to make physical conqKHis(Mis as ofthe date
of value. Chice differing sale and maricet conditions have been sK^counted for, the physical characteristics
ofthe ccHnparable sales are compared to the subject.
Market Conditions - All of the comparable land sales transpired between2010 and 2012, with two of the
land sales h^spiring in 2012. During the confmnation of these sales, we contacted br<dcers, Iniyers and
sellers who make a market in residential land in the subject area. They were asked their opinkms ofthe
market for this type of land in the area, and the general consensus was that the market for residential land
has been relatively level, since a severe downward trend in price from the end 2005. There have not been
sufficient sales of vacant parcels of residential subdivision land to do a meaningful trend analysis of seUing
prices. However, studying the selling prices for improved single family homes in the area can yield an
indication ofthe value of the underlying land. To that end, the appraisers reviewed sales of single family
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
li
residences in the subject zip code for the years 2005 through 2011, and year to date in 2012. The analysis
was done on the basis of selling price per square foot of improvements in order to minimize the effect of
differing improvement sizes on the resuhs. It revealed that average selling prices declined severely from
the end of2005 until late 2009, but has shown signs of bottoming and stabilizing since that time. Most of
the decline in sale price occurred from 2008 to mid 2009 All of the sale comparables have transpired since
2010 and according to conversations with brokers and our price trending analysis no adjustment is
warranted for market condhions from date of sale to the date of value.
Unit of Comparison - The unit of comparison used in this analysis is selling price per lot, as this is
typically the primary basis upon which residential sites are bought and sold.
Elements of Comparison • Elements of comparison used in this analysis are those typically considered
in residential land appraisals. They include locaticm, unit density, topography / site utility, view potential,
development status/potential, access and offsite improvements. Note that since unit values typically decline
as the density increases, a denser site is considered inferior on a price per unit basis to a less dense site.
Appropriate consideration was given to parcel size and density, as well as other physical characteristics
in our valuation of the subject property. Each comparable sale was compared to the subject property on
the basis of all of these factors to arrive at an indicated subject value for that comparable.
Comparable Selection - Our search for comparable sales focused on the most recently available sales of
residential subdivision land which are as similar as possible in size and density to the subject, and which
are in northem San Diego County locations. The comparable sales bracket the subject property's size,
density and development status.
When using these criteria to ccnnpare a comparable prc^rty to the subject, we will use the following
qualitative descriptions to indicate the degree of superiority or inferiority. In order of increasing differences
between the comparable and the subject they are:
Slightly Inferior/Superior
Inferior/Superior
Considerably Inferior/Superior
Substantially Inferior/Superior
Vastly Inferior/Superior
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
LAND COMPARABLE SUMMARY & ANALYSIS
PROPERTY INFORMATION Subject SALE NO. 1 SALE NO. ? SALE NO. 3 SALE NO. 4 SALE USTING
Property Location Poinsettia Lane 1745 Olivenhain Road SWC Poinsettia Lane NWC San Elio Road Meba Road 3890 Highland Drive
at CrystaRine Or & Lowder Lane & Wrid Canyon Drive & Babur Drive
Carlsbad Encinitas Carlsbad San Marcos Encinitas Carlsbad
Owner/Seller Tabata Fam Trust Engelhardt Living Trust US Bank San Elqo HiOs Dev Co Senojac. LLC Alameda Family
Buyer Citymark Ofivenhain LLC K Hovnanian Carlsbad Lennar Homes CA Warmington Encinitas 41 Listing
Assessor Parcel Number Several 255-222-46 & 47 214-471-53 679-220-02 259-180-19 207-130-73
Recording Date 04A)3/12 03/19/10 03C9/12 11/23/10 Listing
Document Number 2012-0192944 2010-0136494 2012-0185661 2010-0646137 Listing
Sale Date (If significantly diff 1 year escrow
from recording date)
Land Area (Ac) 290 1.53 5.13 488 553 1 06
Number of Lots 5 7 27 18 18 5
Density (Lota/Ac) 1.7 4.6 5.3 3.7 3.3 4.7
Zoning Rl R8 RD-M-Q SPA R3 Rl
Oevekipment Status/Potential Approved T-Map Sow with no maps Approved T-Map ATOS Approved T-Map ATOS Approved T-Map ATOS Approved T-Map ATOS
Proposed Use/ Residential ResWentiai Reskiential Resklential Reskjential Resklential
Highest & Best Use Residential ResWential Resklential Resklential Resklential Resklential
Comments Mostly vacant site. Rough graded sie. Rough graded sfte. Rough graded site. Improved with oM Improved with an
One older home Abuts 1-5 ak>ng western green house, no vakie okJer resklence
on property boundary contri>utk>n. Some ocean views.
Price
Per Lot
SI .000,000
$142,857
$4,825,000
$178.704
$3,350,000
$186.111
$5,400,000
$300,000
$1,575,000
$315,000
COMPARABILITY ANALYSIS
CofKlitions of Sale/Market
Property Rights
Subtotal $142,857 $178,704 $186,111 $300,000 $315,000
Financing
Subtotal $142,857 $178,704 $186,111 $300,000 $315,000
Condilion of Sale Inferior LBTIf^G
Subtotal $142,857 $178,704 $186,111 $300,000 $315,000
Market Conditions 0% 0% 0% 0% 0%
Market Condition A<^. Price $142,857 $178.704 $186,111 $300,000 $315,000
Physical Characteristics:
Locatton
Density (Lots per acre)
Topography / SKe Utility
View Potential
Devetopment Status/Potential
Access
Of fetes (Roads, Utilities)
Overall Comparability
Very Good
1.72
Level / Stoping
Very Good- Ocean
Approved T-Map
Average
Available adiacent
Slightly toferior
Inferior
Superior
toferior
Consto toferior
SimAar
Stoittor
Substant Inferior
Sightly hfertor
toferior
Superior
SIghtty Inferior
Similar
Sknilar
Similar
tofertor
SRghtly toferior
Superior
tofertor
Sknilar
Sknter
Stoiilar
Slightly tofertor
SSghtty toferior
Supertor
toferior
Stoiilar
Simtter
Stoiilar
Similar
kifertor
Supertor
Similar
Similar
Similar
Similar
Consid Inferior Gen Sim to SI Inferior Generally Similar
0
Comparable Sales Comparison
The appraisers searched for recent sales of similar sized, residential subdivision land parcels in the general
area ofthe subject. The subject area is fiilly built-out and a diminishing number of vacant sites remain to
be developed. We then expanded the search to include a wider radius to include other areas of coastal north
San Diego County considered to have moderately similar, but somewhat inferior locational characteristics
and found the sales shown in the following table. These sales are considered the most appropriate and
available sales for comparison with the subject as they bracket the subject property's size, density, and
development status characteristics.
Land Sale 1
This was die April 2012 sale of an approximately 1.53 acre parcel of residential zoned land located at 1745
Olivenham Road in Carlsbad. The selling price was $ 1,000,000, or $ 142,857 per lot. It was a cash to seller
transaction. The prc^rty is generally level and offers average area views. The property was purchased with
the intention of developing it into a residential use, but there were no maps on the property as ofthe date
of sale. During an extended one year escrow, a tentative map was bemg processed by the buyer. Tte buyer
subsequently perfected a tentative map for seven lots on the property which was aj^roved in April 2012.
The resultmg density is 4.6 units per acre. As of our inspection, the tentative ms^ had only very recently
been approved, and no constmction had yet begun. There was an older metal building on the jMoperty
which generates minimal interim inc(Hne.
This sale pr<^rty is ctmsidered inferim to the subject as to its density on a dollars per lot basis and its lack
of ocean view potential, and slightly inferior relative to hs lack of location in coastal Carlsbad, ft is
consicterably inferiw as to its develqjment status lackuig entitiements as of the date of sale, ft is ccmsidered
superior as to its leveler topography, ft is considered generaUy sunilar to the subject in other respects.
Overall, this sale faoperty is considered substantially inferior to the subject and iiklicates a subject value
of substantially more than $142,857 per lot.
Land Sale 2
This was the March 2010 sale of an approximately 5.13 acre parcel of residential zoned land located at the
southwest comer of Poinsettia Lane and Lowder Lane in Carisbad, just east of Interstate 5. The selling
price was $4,825,000, or $178,704 per lot. ft was a cash to seller transaction. The property is generally
level and offers average area views. The property was purchased with the intention of developing it mto
a residential use, and the property had an approved tentative map for 27 lots as ofthe date of sale. The
resulting density is 5.3 unhs per acre. According to the confirming source the property was an REO, but
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
sold approximately at market. Consideration was given to the REO sale condhion in our analysis. As of
our inspection constmction was underway and many of the residences had been completed.
This sale property is considered slightly inferior to the subject as to hs specific location in the City of
Carlsbad, abutting Interstate 5, and its more limhed ocean views, ft is inferior as to its density on a dollars
per lot basis. It is considered superior as to its leveler topography. It is considered generally sunilar to the
subject in other respects. Overall, this sale property is considered inferior to the subject and indicates a
subject value of more than $178,704 per lot.
Land Sale 3
This was the March 2012 sale of an approximately 4.88 acre parcel of residential zoned land located at the
northwest comer of San Elijo Road and Wild Canyon Drive, in San Marcos. The sellmg price was
$3,350,000, or $186,111 per lot. ft was a cash to seller transaction. This property has relatively level
topography, and offers minimal views of the surrounding area. The property was purchased with the
mtention of developing it to a residential use, and there was an approved tentative map for 18 lots <m the
property as of die date of sale. The resulting density is 3.7 units per acre. As of our mspection, constmction
was underway, many of the residence building pads were completed.
This sale property is considered inferior to the subject as to its lack of location in coastal Carlsbad and hs
lack of ocean view potential. It is sUghtly inferior as to its density on a price per lot basis, ft is considered
superior to the subject in terms of its level topography, ft is considered generally sunilar to the subject in
other respects. Overall, this sale property is considerably inferior to the subject and indicates a subject
value of c(»isiderably more than $186,111 per lot.
Land Sale 4
This was the November 2010 sale of an approximately 5.53 acre parcel of residential zoned land located
on the east side of Balour Drive and the north side of Melba Road in EiKiinitas. The selling price was
$5,400,000, or $300,000 per lot. ft was a cash to seller transaction, ft is a relatively level site which offers
average area views. The property was purchased with the intention of developing it to a residential use, and
there was an approved tentative map for 18 units on the property as of the date of sale. The resulting
density is 3.3 units per acre. This property was improved with an old green house that did not contribute
any value. As of our mspection, constmction was underway and many of the residences had been
constucted.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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This sale property is considered slightly inferior to the subject as to its Encinitas location and its slightly
higher density on a price per unit basis. It is inferior relative to its lack of ocean view potential. It is
superior in terms of its level topography. It is considered generally similar to the subject in other respects.
Overall, this sale property is considered slightly inferior to generally similar to the subject property, and
indicates a subject value in the range of $300,000 per lot.
Listing Comparable
This was the sale listing of an approximately 1.06 acre parcel of residential zoned land located at 3890
Highland Drive in Carlsbad. The property is listed for sale at $1,575,000, or $315,000 per lot. This
property has relatively level topography, and offers views of the surrounding area and distant ocean views.
The property currently has an approved tentative map in place for 5 lots and would be purchased with the
intention of developing the site to a residential use. The resulting density is 4.7 lots per acre. The property
is currently improved with a residence generating minimal interim income. This is a current listing and
the property would likely sell for slightly less than the listed price.
This listed property is inferior to the subject property as to its higher density on a dollars per lot basis. It
is considered superior to the subject in terms of its leveler topography with more site utility. It is considered
generally similar to the subject in other respects including location and view potential. Overall, this sale
listing is considered generally similar to the subject with respect to physical characteristics and indicates
a subject value in the range of $315,000 per lot.
The following table arrays the sale properties from inferior to superior to the subject prc^rty.
AM) S \1 1 ( OM 1' \ K \ I5l I S SI M M \ in
Sale Location Date Slic
(Ac)
Prke Price
ptr Lot
Comparability
1 1745 Olivenhain Road, Encinitas 04/03/12 1.53 $1,000,000 $142,857 Substant Inferior
3 NWC San Elijo Rd & Wild Canyon Dr. SM 03/29/12 4.88 $3,350,000 $186,111 Consid Inferior
2 SWC Poinsettia Lane & Lowder Lane, Carlsbad 03/19/10 5.13 $4,825,000 $178,704 Inferior
4 Melba Road & Balour Drive, Encinitas II/23/I0 5.53 $5,400,000 $300,000 Gen Sim to SI Inf
Subj Poinsettia Lane at Crystalline Drive, Carlsbad X 2.90 X $315,000 ^><d
Listing 3890 Highland Drive, Carlsbad Listing 1.06 $1,575,000 $315,000 Gen Similar
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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Value Reconciliation
The subject property's low development density and good ocean views are considered superior to various
degrees to all the comparables used in our analysis on a price per lot basis. The appraisers searched for
comparables that would bracket these unique physical attributes, but there were no reasonably recent
transactions available with similar coastal locations. Therefore, the selected comparables are considered
to be the best indicators of subject value. Primary value consideration was given to comparables 2,4, and
the Listing. Comparable 2 is generally similar to the subject in many ways, located within relatively close
proximity to the subject and has some ocean view influence. However, the much higher density and the
REO sale condition make this transaction a low value indicator. Sale 4 and the Listing provide upper end
support, with the Usting's small size, limited ocean views, and small project magnitude generally similar
to the subject property. Therefore based upon the comparisons presented in the preceding comparable
analysis paragraphs, with primary consideration weighted on Sales 2,4, and the Listing and sui^rt from
the remaining comparables, it is our opinion that the per unh land value of the subject property is at the
upper end of the range of indicated values, or $315,000 per lot. Extending that per unh value to the entire
five lots yields the following value for the subject property.
Land Value 5 Lots x $315,000/Lot = $1^75,000
DESCRIPTION OF THE PART TO BE ACQUIRED
The subject property is currently encumbered by a slc^ easement that was granted to the City ofCarlsbad
in 1989. The easement is basically triangular in shape, and according to information jmivided by REC
Engineering, totals approximately 16,990 square feet. The encumbered area includes the bank that extends
up from Poinsettia Lane to the more level portion of the subject property, as well as portimis of three of
the homesites shown on the tentative map.
The property owners wish to have a portion ofthe slope easement vacated in order to be able to grade that
area to gain added back yard area for three of the proposed lots. The portion ofthe slope easement to be
vacated is irregular in shape, and is at the top of the existing bank that extends up to the property from
Poinsettia Lane. According to REC Engineering, the area to be vacated totals approxunately 0.216 acres
in size, or 9,409 square feet. Please refer to the proposed Easement Vacation Map and Legal Description
included earlier in the report.
When determining the value of an easement area, the severity of the reduction in the property owner's
bundle of rights must be considered. Road easements, in which the property owner essentially loses full
control of the encumbered area are considered to be the most severe loss of rights, and are generally
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
considered to be 100% of fee value. Utility and drainage easements are typically less severe, because the
areas encumbered can still be used by the property owner for things other that constmction of major
improvements in the area. It is a generally accepted appraisal practice to value these easements in the range
or 40% to 60% of the fee value of the land. Slope easements are generally considered to be an even smaller
loss of the owner's bundle of rights to the encumbered area since the area is unlikely to be dug up by the
easement owner in the course of performing maintenance or repairs, as could be the case with a utility
easement. Slope easements are typically valued at 10% to 25% of the underlying fee value ofthe land.
In the case ofthe subject property, all three of the proposed lots that extend into the current slope easement
area are significantly larger than the 7,500 square foot minimum lot area legally required by zoning. The
appraisers, in the course of completing numerous other appraisal assignments, have made several studies
of residential lot values. These studies have all shown that, other factors being equal, differences in lot size
over and above the minimum required size make relatively small differences ui overall property values.
These findings were also corroborated through conversations with residential real estate brokers.
The appraisers were not provided data relating to exactly how much of each of the three affected lots is in
the existing easement area. However, review of the prq)osed tentative map suggests that all of the
easement area in Lots 3 and 5, and most or all of the easement area m Lot 4 are in the "excess" lot area
over and above the minimum 7,500 square feet. Since our research indicates that this excess area
contributes value to the property at a significantly lower rate than the unit value of the required minimum
lot area, 7,500 square feet in this case, it is our opinion that a slope easement encumbrance in that area
would be a relatively small loss in the owner's bundle of rights. Offsetting that to some extent m this
instance, however, is the fact that the acquuing propetty owners are actually gaining usable lot area for the
diree affected tots. As a result, we have concluded that the existing slope easement rq)resents a loss ofthe
owner's bundle of rights in the range or 15% to 20% of the underiying fee value ofthe land. Since the
easement area is provided in square feet, we must fu-st convert the subject value to a per square foot value
as follows:
Subject Value / SF $1,575,000 - 126,304 SF = $12.47/SF
At a 15% reduction in owner's bundle of rights, the easement area to be vacated would be valued as
follows:
Value of Easement Area. .. 9,409 SF x $12.47/SF x 15% = $17,600
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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At a 20% reduction in owner's bundle of rights, the area would be valued as follows:
Value of Easement Area. .. 9,409 SF x $12.47/SF x 20% = $23,466
Based on the foregoing analysis, we have concluded that the market value of the easement area to be
vacated by the City of Carlsbad is:
$20,000
TWENTY THOUSAND DOLLARS
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
MARKET DATA ADDENDUM
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HENDRICKSON APPRAISAL COMPANY, DMC Real Estate Appraisers • Consultants
LAND SALES MAP
Cp.»tr«no Municipal Airport |
Loma Alta jj
Ivey Ranch /
Rancho Del Oro Peacock
Oceanside Mira Costa
Vista
Tn-Cily ^•>»c*o'<JP'«». j.
Twm Oak* Vaiey
Golf Cours«
MsM Rock
Subject
McClellan-Palomar
Airport
S*'»«*=«^BIy<J
Lake San
San Marcos
.ake San ^»«n Rd
Savona
Coi
Cl
(22)
Ellin Potest Recreational
Reserve
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
If If
Land Comparable 1
' 2 or*
HI
®
/-//•££ ^//^/
• 1 a aiii
— —^ .—-:
—{-
•—.
-—
'—•
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
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Location:
APN(s):
Size & Shape:
Topography:
Zoning:
Density:
Utilities:
Accest/OfT Sites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Confirmed By:
Comments:
Land Comparable 1
1745 Olivenhain Road, Encinitas, CA 92024
255-22-46 and 47
Approximately 1.53 acres; 66,647 square feet. Square in shape.
Generally Level / rough graded, previously improved.
R8 - Residential; (5 to 8 du/ac)
4.6
Utilities are available to the site.
Similar
3,700 SF metal mdustrial building, does not contribute value. Will be demolished.
$1,000,000 ($142,857/Lot)
Cash to seller.
Document Number: 2012-0192944
Recording Date: 04/03/2012
Transfer Tax: $1,100
Citymark Olivenhain, LLC
Engelhardt Living Tmst
Mark Miles, buyer representative, and public records.
The property was improved with an older industrial building and has a graded
decomposed granite yard area. This property was purchased as essentially raw land
with no enthlements. During a long one year escrow, tentative maps were being
processed. The buyer subsequently perfected a tentative m^ for 11 units (4.6 units
per acre) which was approved in 2012. At the time of our property inspection the
metal industrial building was still in place and no constmction had yet begun. The
site offers minimal area views.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
ig Land Comparable 2
rJ
CHANGE* I. . ^
••
.... <. _ ija
-fT
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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Location:
APN(s):
Size & Shape:
Topography:
Zoning:
Density:
Utilities:
Access/Off Sites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Seller:
Confirmed By:
Comments:
Land Comparable 2
Southwest comer of Poinsettia Lane and Lowder Lane, Carlsbad, CA 92009
ATOS: 214-471-53
Cun-ent: 214-473-01 through 31
Approximately 5.13 acres; 223,462 square feet. Generally rectangular.
Generally level / at grade with Lowder Lane
RD-M-Q
5.3
UtiUties are available to the site.
Similar
Raw Land
$4,825,000 ($178,704/Lot)
Cash to seller.
Document Number:
Recording Date:
Transfer Tax:
2010-0136494
03/19/2010
Not disclosed
K Hovnanian at Carlsbad LLC
U.S. Bank, N.A.
Timothy Winslow, buyer's representative, and public records.
The property is located at the comer of Poinsettia Lane and Lowder Lane, and abuts
the eastem side of Interstate 5. It is approximately half a mile to the beach and
offers some ocean views and area views. At the time of sale the site was rough
graded and at street grade with Lowder Lane. The property had an ^proved
tentative map in place for 27 single family lots. According to the confirming source
the transaction was an REO, but sold at a market price with no sale concessions.
During the property inspection constraction was underway and many of the
residences had been completed. The neighborhood is called "The Tides at
Carlsbad" and has good quality residences ranging in listed prices from $673,000
to $786,000.
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HENDRICKSON APPRAISAL COMPANY, DMC Real Estate Appraisers • Consultants
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Land Comparable 3
STEPHANIE STA-V _
S*N EUJO.
MAP 15841 - atV Of SAN MARCOS TCT NO 400 PHASE 3 - UNIT NO 16 MAP 1M40- QTY or SAN MARCOS TCT NO 400 PHASE 3 - UNIT NO 14 MAP 15112 - SAN MARCOS TCT NO 400 PHASE 3 - UNIT NO 1 MAP 14095- SAN MARCOS TCT NO 400 PHASE 2 - UNIT NO 1
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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Location:
APN(s):
Size & Shape:
Topography:
Zoning:
Density:
Utilities:
Access/Off Sites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Seller:
Confirmed By:
Comments:
Land Comparable 3
Northwest comer of San Elijo Road and Wild Canyon Drive, San Marcos, CA
92078
679-220-02
Approximately 4.88 acres; 212,751 square feet; triangular in shape.
Generally level pad area, above street grade of San Elijo Road.
SPA - Specific Plan Area
3.7
Utilities are available to the site.
Similar
Raw land
$3,350,000 ($186,111/Lot)
Cash to seller.
Document Number: 2012-0185661
Recording Date: 03/29/2012
Transfer Tax: $3,685
Lennar Homes of Califomia, Inc.
San Elijo Hills Development Company, LLC
Assessors data and public records. Unable to contact the buyer and seller.
This property was purchased as rough graded, raw land with an approved tentative
map in place for 18 single family lots. Reportedly, there were no conditions that
affected the sales price. As of the property inspection construction was underway
and many of the building pads had been completed. The site offers good views of
the surrounding mountains and valleys.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Land Comparable 4
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HB HB
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HH •H BH
IB MB
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MAP 15827- CIT> OF ENCINITAS TCT 06-005 KC 14- TI3S-IUW-P0R NCI,* or JW 1/4 ROS 2439.15544.16184.19311
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HENDRICKSON APPRAISAL COMPANY, INC Real Estate Appraisers • Consultants
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Land Comparable 4
Location:
APN(s):
Size & Shape:
Topography:
Zoning:
Density:
Utilities:
Access/Off Sites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Seller:
Confirmed By:
Comments:
Melba Road and Balour Drive, Encinitas, CA 92024
ATOS: 259-180-19
Curtent: 259-180-37 through 56
Approximately 5.53 acres; 240,887 square feet; "L" shaped parcel.
Generally level, at street grade with Melba Road and Balour Drive
R3 - Residential (2-3 du/ac)
3.3
Utilities are available to the site.
Similar
Depreciated garden center, no value contribution.
$5,400,000 ($300,000/Lot)
Cash to seller.
Document Number: 2010-0646137
Recording Date: 11/23/2010
Transfer Tax: $5,940
Warmington Encinitas 41, LLC
Senojac, LLC
Assessors data and public records. Unable to contact the buyer and seller.
At the tune of sale the property had an old garden center on the site which did not
contribute value to the property. The site has two street frontage and access. It is
generally level and at grade with both streets. At the time of inspection the old
unprovements had been demolished and constmction was underway. Many ofthe
residences had been completed. The project is called "Seaside Highlands", a
development with 18 single family residences ranging in price from $ $1,050,000
to $1,379,000.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Listing Comparable
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Listing Comparable
Location:
APN:
Size & Shape:
Topography:
Zoning:
Density:
UtiUties:
Access/Off Sites:
Improvements:
Listed Price:
Terms:
Transaction:
Buyer:
Owner:
CtHifirmed By:
Comments:
3890 Highland Drive, Carisbad, CA 92008
207-130-73
Approximately 1.07 acres; 46,609 square feet; rectangular shape.
Generally level pad areas, with some slope.
Rl - Residential 7,500 SF lots.
4.7
Utilities are available to the site.
Similar
Existing 1,206 SF single family residence.
$1,575,000 ($315,00/Lot)
N/A - Listing
N/A - Listing
N/A - Listing
Alameda Family
Matt Weaver, seller representative; public records.
This is a current listing of a property located in Carlsbad. It has two street frontage
and access from Highland Drive and James Drive, ft is a two tier site with two level
developable areas. Reportedly there is an active tentative map on the property for
five lots. The potential lots fronting on Highland Drive offer limited ocean views
and the lots frontmg on James Eh-ive offer views ofthe surrounding area. The small
residence on the site was rented to tenants and generates interim income. However,
it will eventually need to be demolished as part of the development project.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
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GENERAL ADDENDA
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants