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Home My WebLink About11/21/2016 - STAFF REPORTS - 1.A. OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY BOARD REPORT MEETING DATE: NOVEMBER 21, 2016 NEW BUSINESS TITLE: APPROVE SALE OF THE SUCCESSOR AGENCY-OWNED PROPERTY LOCATED AT 342-344 NORTH PALM CANYON DRIVE, KNOWN AS CORK N BOTTLE (APN 513-081-017) AND IDENTIFIED AS PROPERTY NO. 6 IN THE LONG RANGE PROPERTY MANAGEMENT PLAN, TO NORTH PALM CANYON DEVELOPMENT, LLC, IN THE AMOUNT OF $425,000 PURSUANT TO SECTION 34191.5(C) OF THE HEALTH AND SAFETY CODE. INITIATED: Department of Community & Economic Development RECOMMENDATION: 1. Adopt Resolution No. 043 , "A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING THE SALE OF THE CORK N BOTTLE PROPERTY, IDENTIFIED AS PROPERTY NO. 6 IN THE LONG RANGE PROPERTY PLAN, (APN 513-081-017) TO NORTH PALM CANYON DRIVE DEVELOPMENT, LLC IN THE AMOUNT OF $425,000 PURSUANT TO SECTION 34191 .5(C) OF THE HEALTH AND SAFETY CODE." BACKGROUND AND ANALYSIS: This is a Purchase and Sale Agreement between the City, acting as the Successor Agency to the Community Redevelopment Agency of the City of Palm Springs ("Successor Agency"), and North Palm Canyon Drive Development, LLC, a Delaware Limited Liability Corporation for a property located at 342 — 344 N. Palm Canyon Drive, known as the Cork n Bottle property. It is a Successor Agency property and its disposition is pursuant to the requirements of 34191.5(c) of the Health and Safety Code. The City and the Oversight Board for the Successor Agency to the Palm Springs Redevelopment Agency have completed the process mandated by the State of California applicable to the disposition and use of the Successor Agency property. Having completed the process, the Successor Agency is now capable of conveying the property in accordance with Section 34191.5(c) of the Health and Safety Code. The purchasers have recently acquired the adjacent properties to the north, south and east of the Cork n Bottle site to assemble for the purpose of a larger development on the site. Escrow closed on those properties on July 27, 2015 and August 3, 2015. Oversight Board Report November 21, 2016 Page 2—Sale of Cork n Bottle Property(LRPMP Property No. 6) The sale amount for the Cork n Bottle property is $425,000. The former Community Redevelopment Agency purchased the property in 2006 for $585,000 for the purpose of assembling the property for future downtown development of a boutique hotel or similar project. The State-approved value in the Long Range Property Management Plan (LRPMP) for this 2,080 square foot parcel is $339,620. An appraisal of the market value of the property by Larry L. Simon, MAI concluded a property valuation of $350,000 as of September 4, 2015. The proposed sale price is in excess of the appraised value to cover escrow and closing costs that are normally incurred by the seller. Asset Transfer Report The Dissolution Act called for the Successor Agency, under the direction of the Oversight Board, to dispose of real property it received from the Dissolved Redevelopment Agency either for limited public uses, or for disposition into the private market expeditiously and with a view toward maximizing value, with the disposition proceeds ultimately made available for distribution to the affected taxing entities. One of the requirements under the Dissolution Act was for the Successor Agency to prepare and submit to the State Controller's Office, an Asset Transfer Assessment, showing the assets that were owned by the Agency and transferred to the Successor Agency upon the dissolution on February 1, 2012. Land Disposition Process Under AB 1484 In 2012, the State approved a redevelopment reform act, AB1484, which changed a number of the processes related to the disposition of dissolved Redevelopment Agency assets. A131484 provided certain flexibility and local benefits in connection with property disposition. At the time of dissolution, the Successor Agency held a total of twelve (12) properties from the dissolved Redevelopment Agency. These properties included sites assembled for future redevelopment, public parking lots and other real property. Disposition of these properties were not able to occur until the Department of Finance ("DOF") issued a finding of completion and approved a Long Range Property Management Plan ("LRPMP") for the intended disposition of these properties. Assembly Bill 1X 26 added Health and Safety Code Sections 34191.1-34191.5 requiring that successor agencies present a LRPMP to their oversight board and submit the LRPMP to DOF no later than six months following the issuance of the finding of completion. The Successor Agency received its finding of completion from the DOF on January 2, 2014. The LRPMP was reviewed by the Oversight Board on December 12, 2013. Prepared in collaboration with a qualified dissolution and real estate consultant, the LRPMP contains detailed information on each property, such as the date and purchase of acquisition, parcel characteristics, estimate of the current value and any lease, rental Oversight Board Report November 21, 2016 Page 3—Sale of Cork n Bottle Property(LRPMP Property No. 6) or other revenues, histories of environmental contamination, and previous development proposals. The LRPMP outlined that the Successor Agency would sell the Cork n Bottle parcel. The State-approved value in the LRPMP for this 2,080 square foot parcel is $339,620. An appraisal of the market value of the property by Larry L. Simon, MAI concluded a property valuation of$350,000 as of September 4, 2015. The sales proceeds collected by the Successor Agency (net of transaction costs) would be transferred later to the county Auditor-Controller for dissemination to each of the affected taxing agencies of the former redevelopment project area. FISCAL IMPACT: The transaction with the parties is $425,000. The City will receive a share of 27% of the sales proceeds of the transaction from the County Auditor-Controller. The remainder of those sales proceeds will be allocated to other taxing entities, such as the school district and the County. Additional new property tax from the redevelopment of the property will be generated, which will also have a net positive effect on the City and all other taxing entities. 1 Dia . Shay, F4development Coordinator J es Thompson, City Clerk versight Board Clerk/Secretary Attachments 1. Excerpt from Long Range Property Management Plan with details on Property No. 6 (Cork n Bottle) 2. Appraisal Report prepared by Larry L. Simon MAI dated September 10, 2015 RESOLUTION NO. 043 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING THE SALE OF THE CORK N BOTTLE PROPERTY, IDENTIFIED AS PROPERTY NO. 6 ON THE LONG RANGE PROPERTY MANAGEMENT PLAN, (APN 513-081-017) TO NORTH PALM CANYON DEVELOPMENT, LLC, IN THE AMOUNT OF $425,000. The Oversight Board of the Successor Agency to the Palm Springs Community Redevelopment Agency finds: A. The Community Redevelopment Agency of the City of Palm Springs was a redevelopment agency in the City of Palm Springs, duly created pursuant to the California Community Redevelopment Law (Part 1 commencing with Section 33000) of Division 24 of the California Health and Safety Code. B. The Successor Agency for the Palm Springs Community Redevelopment Agency received its finding of completion from the California Department of Finance on January 2, 2014, pursuant to the Dissolution Act. C. On October 19, 2016, the Successor Agency approved a Purchase and Sale Agreement and Escrow Instructions with North Palm Canyon Drive Development, LLC for the Cork n Bottle Property located at 342-344 North Palm Canyon Drive, identified as Property No. 6 in the Long Range Property Management Plan. D. A Notice of Public Meeting pursuant to the sale was posted and published on November 10, 2016, pursuant to California Health and Safety Code Section 34181. E. The Oversight Board conducted a duly noticed meeting on November 21, 2016, for the purpose of considering the sale of the Cork n Bottle property, and received and reviewed supplemental information, supporting the value of the land sale, including the following: 1. The Community Redevelopment Agency of the City of Palm Springs purchased the property in 2006 in the amount of $585,000. 2. The estimated value of the property approved in the Long Range Property Management Plan was $339,620. 2. In September, 2015 the property was appraised for$350,000. 4. North Palm Canyon Development, LLC has offered to purchase the property from the Successor Agency for the amount of$425,000. Resolution No. 043 Page 2 NOW, THEREFORE, BE IT RESOLVED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AS FOLLOWS: SECTION 1. The Oversight Board hereby finds and determines that the foregoing recitals are true and correct, and incorporates them herein by reference. SECTION 2. All legal prerequisites to the adoption of this Resolution have been satisfied. SECTION 3. The Oversight Board approves the sale of Property No. 6 in the Long Range Property Management Plan, the Cork n Bottle Property, to North Palm Canyon Development, LLC for $425,000. SECTION 4. At such time as the Successor Agency receives proceeds from the sale of the property, the Successor Agency shall comply with applicable statutes regarding the distribution of these proceeds to the County Auditor Controller for dissemination to the affected taxing agencies. SECTION 5. This Resolution shall become effective in accordance with California Health and Safety Code Section 34179(h), which authorizes the California Department of Finance to review all actions taken by the Oversight Board. PASSED, APPROVED AND ADOPTED BY THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY ON THIS 21ST DAY OF NOVEMBER, 2016. LISA HOWELL, CHAIR ATTEST: James Thompson, Clerk/Secretary Resolution No. 043 Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, James Thompson, Clerk/Secretary of the Oversight Board of the Successor Agency of the Palm Springs Community Redevelopment Agency hereby certify that Resolution No. 043 was adopted by the Oversight Board at a Special Meeting held on the 21 st of November, 2016, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California Oversight Board Clerk/Secretary Successor Agency to the Palm Springs Community Redevelopment Agency Long-Range Property Management Plan CORK N BOTTLE (PROPERTY 6) Address: 342 N. Palm Canyon Dr. APN: 513-081-017 Lot Size: 2,080 sq. ft. Attachment 1 Parcel: 10 Acquisition Date: November 17, 2006 Value at Time of Purchase: $620,000, according to City records Property Type (DOF Category) Commercial Permissable Use (City Proposed) Sale of Property Current Zoning: CBD - Central Business District Zone Estimated Current Value: $339,620 Based on RSG's analysis, which utilizes an income- based approach. The details of the analysis are shown below. Estimated Value Utilizing Income Based Approach:342 N.Palm Canyon Dr. Monthly Gross Income: $ 2,750 Annual Gross Income: $ 33,000 Less: Annual Property Tax': $ 2,728 Operating Expenses as Share of Gross Income': 20% Annual Operating Expenses: $ 6,600 Annual Property-faxes and Operating Expenses: $ 9,328 Annual Net Operating Income: $ 23,672 Cap Rate': 6.97% Estimated Value $ 339,620 'Source:Riverside County Office of the Treasurer-Tax Col lector 'Based on median operating expense amount per square foot for comparable properties ($3.12)and average rent amount for properties in the Inland Empire retail market during the third quarter of 2013($15.73)(Source:CoStar COMPS,CoStar Property) 3 Average cap rate for buildi ngs under 25,000 sq.ft.in the Inland Empire retail market from July 2012-June 2013(Source:CoStar COMPS) Advancement of Planning Objectives: None. Page 17 Successor Agency to the Palm Springs Community Redevelopment. - Property Management- The former Agency acquired this parcel with the intention of assembling several properties in the area to develop a boutique hotel to support the nearby Convention Center. However, the adjacent properties were never acquired by the Agency. The building on the parcel is a Class 1 historic structure. Therefore, reuse and any interior changes must be approved by the City's Historic Site Preservation Board. A commercial building is currently on the parcel. The current tenant is a retail store called "Cork n Bottle." The tenant began occupancy of the building in 2004. When the Agency purchased the building in 2006, the Agency assumed Cork n Bottle's lease with the previous owner. The original lease began in 2004 and ended in 2009. However, the lease provides the tenant the right to extend the lease for a period of five additional years up to three times, upon the end of the original lease in 2009. In 2009, the tenant opted to extend the lease until November 2014, at which point the tenant still has two more options to extend the lease for five additional years. Thus, the tenant has the right to occupy the building until the year 2024. The City receives $2,750 in monthly lease revenue from Cork n Bottle. Pursuant to the original lease that the tenant agreed upon with the prior owner, receipt of lease revenue obligates the owner to pay possessory interest property taxes for the property. Thus, the City currently pays the property's possessory interest property taxes, which amounts to $2,728 per year. Additionally, the City pays management fees for the building, as well as some maintenance fees. The City also includes the building in its insurance policy for City-owned buildings. iy 3 r • 1 r +MIP ,r r r + Photo source: Google Maps Page 18 APPRAISAL REPORT Two-Unit Storefront Retail Building Cork'n Bottle Liquor Store 342 North Palm Canyon Drive Palm Springs, CA 92262 Effective Date of the Appraisal: September 4, 2015 Date of the Appraisal Report: September 10, 2015 Prepared For: David H. Ready, Esq., Ph.D., City Manager City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 Prepared By: Larry L. Simon, MAI Real Estate Appraiser & Consultant 75153 Spyglass Drive Indian Wells, CA 92210 (760) 610-1820 LARRY L. SIMON, MAI Real Estate Appraiser And Consultant Member, Appraisal Institute 75153 Spyglass Drive • Indian Wells, CA 92210 (760) 610-1820 • FAX (760) 262-3149 • E-Mail: simon.appraiser@gmail.com September 10, 2015 David H. Ready, Esq., Ph.D., City Manager City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 Re: Two-Unit Storefront Retail Building Cork'n Bottle Liquor Store 342 North Palm Canyon Drive Palm Springs, CA 92262 Dear Mr. Ready: In fulfillment of your request and authorization, I am pleased to present the attached report of my appraisal of the fee simple estate in the above-referenced property, as of September 4, 2015. The report sets forth my opinion of the as is market value, along with supporting data and reasoning which form the basis of my opinion. The value opinion reported is qualified by certain definitions, extraordinary assumptions, general assumptions and limiting conditions, and certification set forth in the report. I particularly call to your attention the extraordinary assumptions set forth in the report. The appraisal was prepared for David H. Ready, City Manager, City of Palm Springs (the "Client"). The intended users of this appraisal are David H. Ready and respective City of Palm Springs officials. The intended use of this appraisal is to assist in the sale of the subject property. The use of this appraisal by anyone other than the stated intended users and for any other use than the stated intended use, is prohibited. The appraisal assignment has been prepared in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), 2014-2015 edition, and Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute. Page 2 David H. Ready September 10, 2015 The subject property comprises a 1935-built, two-unit, storefront retail building containing a gross building area totaling 1,590 square feet situated on a 2,094 square foot lot. The property is known as "Cork'n Bottle Liquor Store" and is currently 100% tenant-occupied on terms of month-to-month. Adjacent properties to the north, east and south were recently purchased in July and August 2015 for redevelopment of a boutique hotel. Please refer to the assessor's map and aerial image for orientation. The type of value opinion developed in this appraisal is the as is market value. Market Value is defined as: The most probable price that the specified property interest should sell for in a competitive market after a reasonable exposure time, as of a specified date, in cash, or in terms equivalent to cash, under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, for self-interest, and assuming that neither is under duress.t As Is Market Value expands upon the definition of market value and is defined as: The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.2 Value Opinion As a result of my analysis, I have formed an opinion that the as is market value of the fee simple estate in the subject property, subject to the definitions, extraordinary assumptions, general assumptions and limiting conditions, and certification set forth in the attached report, as of September 4, 2015 was: Three Hundred and Fifty Thousand Dollars The value opinion pertains only to the real property. No personal property items are included. The Dictionary of Real Estate Appraisal, 5`h ed.,page 122,published in 2010 by the Appraisal Institute. Ibid.page 12. Page 3 David H. Ready September 10, 2015 This letter must remain attached to the report, which contains 39 pages plus related exhibits, in order for the value opinion set forth to be considered valid. Respectfully submitted, C� � ,Y � Larry L. Simon, MAI CA State Certification No.: AGO04310 Expiration Date: May 26, 2016 TABLE OF CONTENTS Title Page Letter of Transmittal Table of Contents Certification of Appraiser Summary of Important Data and Conclusions PREMISES OF THE APPRAISAL Appraisal Problem to be Solved 2 Intended Users and Use of the Appraisal 2 Type and Definitions of Value 2 Date of Site Visit 2 Effective Date of the Appraisal 2 Date of the Appraisal Report 3 Property Interest Being Appraised 3 Scope of Work 3 USPAP Competency Rule Compliance 5 Personal Property 6 General Assumptions and Limiting Conditions 6 PRESENTATION OF DATA Property Identification 10 Sale History 10 Assessor's Map 11 Subject Property Photographs 12 Market Area Description 15 Regional Map 22 Neighborhood Map 23 Land Description 24 Improvement Description 27 Building Sketch 28 ANALYSIS OF DATA AND CONCLUSIONS Highest and Best Use Analysis 31 Approach to Value 32 Sales Comparison Approach 33 Location Map—Comparable Sale Properties 35 Photographs—Comparable Sale Properties 36 Final Value Conclusion 39 APPRAISER'S QUALIFICATIONS CERTIFICATION I certify that, to the best of my knowledge and belief: • The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. • I 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. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. My 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 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. The reported 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 Appraisal Practice of the Appraisal Institute. . The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 1 have acted in an independent capacity and the appraisal assignment is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. • I have made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification. I am professionally competent to perform and complete this assignment, thereby being in compliance with the Competency Rule of the Uniform Standards of Professional Appraisal Practice. • As of the date of this report, I have completed the continuing education program of the Appraisal Institute. • I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Larry L. Simon, MAI CA State Certification No.: AG004310 Expiration Date: May 26, 2016 September 10, 2015 SUMMARY OF IMPORTANT DATA AND CONCLUSIONS Property Type: Two-Unit Storefront Retail Building Name: Cork'n Bottle Liquor Store Address: 342 North Palm Canyon Drive Palm Springs, CA 92262 County/Map Guide: Riverside/786-El Assessor's Parcel No.: 009-618-576 Alternate Assessor's Parcel No.: 513-081-017 Appraisal Problem to be Solved: Develop an opinion of the as is market value. Effective Date of the Appraisal: September 4, 2015 Date of the Appraisal Report: September 10, 2015 Property Interest Appraised: Fee Simple Estate Lot Area: 2,094 SF General Plan Land Use: Central Business District Zoning: C-B-D—Central Business District with a Resort Combining Zone Overlay. Improvement Description: Year Built 1935 Construction Type Class C— Masonry. Construction Quality Average Condition Fair to average. Gross Building Area 1,590 SF. Site Coverage 76%. On-Site Parking None Occupancy: 100% tenant-occupied on terms of month-to-month. As Is Market Value: $350,000 PREMISES OF THE APPRAISAL i APPRAISAL PROBLEM TO BE SOLVED The problem to be solved in this appraisal assignment is to develop an opinion of the as is market value of the fee simple estate in the subject property. INTENDED USERS AND USE OF THE APPRAISAL The intended users of this appraisal are David H. Ready and respective City of Palm Springs officials. The intended use of this appraisal is to assist in the sale of the subject property. The use of this appraisal by anyone other than the stated intended users and for any other use than the stated intended use, is prohibited. TYPE AND DEFINITIONS OF VALUE The type of value opinion developed in this appraisal is the as is market value. Market Value is defined as: The most probable price that the specified property interest should sell for in a competitive market after a reasonable exposure time, as of a specified date, in cash, or in terms equivalent to cash, under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, for self-interest, and assuming that neither is under duress.t As Is Market Value expands upon the definition of market value and is defined as: The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.2 DATE OF SITE VISIT The subject property and its surroundings were investigated on September 4, 2015. EFFECTIVE DATE OF THE APPRAISAL The conclusions and opinions set forth in this appraisal apply only to the effective date of value of September 4, 3015. 'The Dictionary of Real Estate Appraisal, 5"ed.,page 122,published in 2010 by the Appraisal Institute. 'Ibid.page 12. 2 DATE OF THE APPRAISAL REPORT The date of this appraisal report is September 10, 2015. PROPERTY INTEREST BEING APPRAISED This appraisal pertains to a valuation of the fee simple estate. Fee Simple Estate is defined as: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.3 SCOPE OF WORK The appraisal report is intended to comply with the reporting requirements set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), 2014-2015 edition, and the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute. In preparing this appraisal, the appraiser: • Conducted a customary investigation of the subject property site, the exterior and interior of the improvements and the property's surrounding uses to determine its physical and locational characteristics that are relevant to the valuation assignment. • Reviewed the following information sources: o Assessor's Map; o Building Permit File; o Flood Map Report; o City of Palm Springs General Plan; o City of Palm Springs Zoning Ordinance; o Various on-line sources; and o Market Area Demographics. • Conducted a search within the subject property's general market area for comparable properties that have recently sold, are under contract, or listed for sale. • Confirmed all relevant comparable data as could reasonably be obtained. • Investigated the subject property's market area characteristics and trends. J Ibid.page 78. 3 The resulting data was then analyzed; conclusions were drawn; and utilizing appropriate appraisal methods and techniques, a value opinion was formed. In the valuation of the subject property, the sales comparison approach is the most relevant and was employed exclusively. The cost and income capitalization approaches were omitted based on the opinion that any analysis would provide little relevancy to the primary appraisal method utilized in valuing the subject property. This appraisal has been made with the following extraordinary assumptions and general assumptions specific to the subject property: 1. No Environmental Site Assessment relating to the existence of hazardous substances or detrimental environmental conditions, including without limitation polychlorinated biphenyl, petroleum leakage, radon/methane/dioxide gases, asbestos, lead-based paint or toxic mold infestation which may or may not be present on the property was provided for review, nor was called to the attention of nor did the appraiser become aware of such during the appraiser's investigation. The use of lead-based paint and asbestos-containing materials were banned in 1978 and 1980, respectively. The subject property improvements were built in 1935. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser is not trained or experienced in the special field of recognition, detection or measurement of such substances and is beyond the scope of the appraiser's expertise. The presence of such hazardous substances or detrimental environmental conditions may affect the value of the property. The value opinion developed herein is predicated on the extraordinary assumption that no such hazardous substances or detrimental environmental conditions exist on or in the property or in such proximity thereto, which would cause a loss in value. No responsibility is assumed for such hazardous substances or detrimental environmental conditions, nor for any expertise or knowledge required to discover them. The Client is urged to retain an expert in this field, if desired. 2. The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of the property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative effect upon the market value of the property. The value opinion developed herein is predicated on the extraordinary assumption that readily achievable barrier removals do not exist. 3. The appraiser has personally investigated the subject property, and except as noted in this report, finds no obvious evidence of structural deficiencies in any improvements located on the subject property. However, the appraiser assumes no responsibility for hidden defects or non-conformity with specific governmental requirements, such as fire, building and safety, earthquake or occupancy codes, unless inspections by qualified independent professionals or governmental agencies were provided to the appraiser. Further, the 4 appraiser is not a licensed engineer or architect and assumes no responsibility for structural deficiencies not apparent to the appraiser at the time of his inspection. 4. Unless otherwise specifically noted in this report, it is assumed that the roof and exterior are in good condition and free from intrusion by the elements. The appraiser is not an engineer and is not competent to judge matters of an engineering nature and, therefore, makes no representations relative to the condition of improvements. The appraiser inspected less than 100% of the entire interior and exterior portions of the improvements; no problems were brought to the attention of the appraiser by ownership or management; and the appraiser was not furnished any engineering studies by the owners or by the party requesting this appraisal. If questions in these areas are critical to the decision process of the reader, the advice of competent engineering consultants should be obtained and relied upon. It is specifically assumed that any knowledgeable and prudent purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. If engineering consultants retained should report negative factors, of a material nature, or if such are later discovered, relative to the condition of improvements, such information could have a substantial negative impact on the conclusions reported in this appraisal. Accordingly, if negative findings are reported by engineering consultants, the appraiser reserves the right to amend the appraisal conclusions reported herein. 5. Building area calculations in this report were prepared by the appraiser and are approximations which may vary from those by another appraiser, architect or engineer. The calculations are considered to be reasonably accurate and within the standards of acceptable appraisal practice. The client should not rely on these calculations in any context other than as approximations. If more precise area calculations are desired, it is the responsibility of the client to engage the services of an architect or civil engineer. 6. No Preliminary Report was provided for review. The appraiser assumes no responsibility for such items of record not disclosed by the appraiser's customary investigation. 7. No termite or pest infestation report was made available to the appraiser. It is assumed that there is no significant termite or pest damage or infestation, unless otherwise stated. 8. No consideration has been given to the value of the property located on-site considered to be personal property, nor has any consideration been given to the cost of moving or relocating any such property; only the real property has been considered in this appraisal. USPAP COMPETENCY RULE COMPLIANCE I have both the knowledge and experience relating to the specific property type, market geographic area, and analytical methodology to perform this appraisal service competently, thereby being in compliance with the Competency Rule of USPAP. 5 PERSONAL PROPERTY This appraisal pertains only to a valuation of the real property. No personal property items are included. GENERAL ASSUMPTIONS AND LIMITING CONDITIONS This appraisal has been made with the following general assumptions: 1. The conclusions and opinions expressed in this report apply to the effective date of value set forth in the letter of transmittal accompanying this report. The dollar amount of any value opinion or conclusion rendered or expressed in this report is based upon the purchasing power of the American dollar existing on the date of the report. 2. The appraiser assumes no responsibility for economic, physical or demographic factors which may affect or alter the opinions in this report if said economic, physical or demographic factors were not present as of the date of the letter of transmittal accompanying this report. The appraiser is not obligated to predict future political, economic or social trends. 3. In preparing this report, the appraiser was required to rely on information furnished by other individuals or found in previously existing records and/or documents. Unless otherwise indicated, such information is presumed to be reliable. However, no warranty, either express or implied, is given by the appraiser for the accuracy of such information and the appraiser assumes no responsibility for information relied upon later found to have been inaccurate. The appraiser reserves the right 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. 4. No opinion as to the title of the subject property is rendered. Data related to ownership and legal description was obtained from public sources and is considered reliable. Title is assumed to be marketable and free and clear of all liens, encumbrances, easements and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management, and available for its highest and best use. 5. The appraiser assumes no responsibility for hidden or unapparent conditions of the property, subsoil, ground water or structures that render the subject property more or less valuable. No responsibility is assumed for arranging for engineering, geologic or environmental studies that may be required to discover such hidden or unapparent conditions. 6. Unless otherwise stated, the subject property is appraised assuming it to be in full compliance with all applicable zoning and land use regulations and restrictions. 6 7. Unless otherwise noted in the report, it is assumed that no changes in the present zoning ordinances or regulations governing use, density, or shape are being considered. 8. Unless otherwise stated, the property is appraised assuming that all required licenses, permits, certificates, consents or other legislative and/or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the market value opinion contained in this report is based. 9. No engineering survey has been made by the appraiser. Except as specifically stated, data relative to size and area of the subject property was taken from sources considered reliable and no encroachment of the subject property is considered to exist. 10. No opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the property is subject to surface entry for the exploration or removal of such materials, except as is expressly stated. 11. Maps, plats and exhibits included in this report are for illustration only to serve as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced or used apart from the report. 12. No opinion is intended to be expressed for matters which require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. 13. The property is located within a geographic area prone to earthquakes and other seismic disturbances. Except as specifically indicated in the report, no seismic or geologic studies have been provided to the appraiser concerning the geologic and/or seismic condition of the subject property. The appraiser assumes no responsibility for the possible effect on the subject property of seismic activity and/or earthquakes. 14. No soils/geologic study was made available for review and underlying soils, groundwater and/or subsurface conditions are unknown. No deleterious conditions were called to the attention of nor did the appraiser become aware of such during the appraiser's inspection. The appraiser is not qualified to make judgment regarding the content or stability of underlying soils conditions. The presence of such deleterious soils conditions may affect the value of the property. The value opinion provided herein is developed on the assumption that no such deleterious soils and/or underlying conditions exist which would cause a loss in value. No responsibility is assumed for any deleterious soils conditions, nor for any expertise or knowledge required to discover them. This appraisal has been made with the following limiting conditions: 1. This report may not be duplicated in whole or in part without the specific written consent of the appraiser nor may this report or copies hereof be transmitted to third parties 7 without said consent, which consent appraiser reserves the right to deny. Exempt from this restriction is duplication for the internal use of the client-addressee and/or transmission to attorneys, accountants, or advisors of the client-addressee. Also exempt from this restriction is transmission of the report to any court, governmental authority, or regulatory agency having jurisdiction over the party/parties for whom this appraisal was prepared, provided that this report and/or its contents shall not be published, in whole or in part, in any public document without the express written consent of appraiser which consent appraiser reserves the right to deny. In addition, this report shall not be advertised to the public or otherwise used to induce a third party to purchase the property or to make a"sale" or"offer for sale" of any"security", as such terms are defined and used in the Securities Act of 1933, as amended. Any third party, not covered by the exemptions herein, who may possess this report, is advised that they should rely on their own independently-secured advice for any decision in connection with this property. The appraiser shall have no accountability or liability to any such a third party. 2. Unless specifically set forth in this report, nothing contained herein shall be construed to represent any direct or indirect recommendation of appraiser to buy, sell, or hold the property at the market value stated. Such decisions involve substantial investment strategy questions and must be specifically addressed in consultation form. 3. Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal report, unless such arrangements are made a reasonable time in advance of said hearing. Further, unless otherwise indicated, separate arrangements shall be made concerning compensation for the appraiser's time to prepare for and attend any such hearing. I 8 PRESENTATION OF DATA 9 PROPERTY IDENTIFICATION Property Type: Two-Unit Storefront Retail Building Name: Cork'n Bottle Liquor Store Address: 342 North Palm Canyon Drive Palm Springs, CA 92262 County/Map Guide: Riverside/786-El Location: Interior lot located on the east side of North Palm Canyon Drive, fifth lot north of Amado Road within the "Downtown" district of Palm Springs. Legal Description: Not available. Assessor's Parcel No.: 009-618-576 Alternate Assessor's Parcel No.: 513-081-017 Current Owner of Record: Corn N Bottle SALE HISTORY The subject property has not changed hands during the past three years. 10 HHSHPNSPREPNSDFORA53EMOIFU MSaIR HRIPARIt11• T.R.A. 011-0GA 5 1 3 - a 8 HE At IS A5S FM R 1 OF PRE%TA 9M ASSE ?Aga. ' YLYV MPlr RI/R LOCK tOr RIr OR SAIOINGSSOI'S SIIE gO1RMRi5. POR.SEC 15 T.45. ,R.4E CITY OF PALM SPRIWS N.D'l.A.1 - ...--- -— 4n 9n4 V E - - ,, a » s Y1 OIC 1 O O - F= A I I fY .Y 1yYpy- ryp iYE F1 ) • FF-i L-- (� � �N 1 1R I e O - » p - Sublect Property 109/432 S.D. PALM SPRINGS N'OV 0 307 _ Recent Assemblage for Redevelopment PY 93/8-9 PARCEL MAP 14748 to a Boutique Hotel ASSESSOR'S W M. 513 PG,0 O Rlnoidf WNIp Ca1i1. 253 c 0— 1997 SUBJECT PROPERTY PHOTOGRAPHS 12 L IZ • v 9 t I. a 1 Ili Ili ll;i!JM �� Hill n, T , Ot n q c Aerial Image �n... VA Recent Assemblage for fir.•^ �� Redevelopment to a Boutique Hotel I'`7' lyres-Sw' af' , J.�._ -.. row• `` 1 W - Subject Property ^ Aerial Image of Surrounding Uses 13 Front Elevation Rear Elevation - k p $s _ p p xr R_ A� Interior Retail Space Retail Space Ceiling m � i f ,' dui Interior Rear Storage Space N. Palm Canyon Dr. Viewing South, Subject Property is Located to the Left. 14 MARKET AREA DESCRIPTION Subject Property Location The subject property is located in the City of Palm Springs, situated in the northwest corner of Riverside County and within the easterly — Coachella Valley — area of the Inland Empire. Riverside County together with San Bernardino County to the north — encompassing the Riverside-San Bemardino-Ontario Metropolitan Statistical Area — comprise the Inland Empire market area. Inland Empire Economic Overview The Inland Empire—prior to the Great Recession— was one of the most robust economies in the United States and was rated in the top tier for various measures of growth from population and job creation to construction and office space absorption over the last decade. As a result of increasing real estate pricing in neighboring Los Angeles County and Orange County, the Inland Empire grew at a rapid pace due to migration from the Los Angeles Basin, as well as internal growth. The Inland Empire has a diverse economic base (based on the concept of"export"of goods or services). Leading industries by rank are tourism; health services/bio-medicine; wholesale trade & logistics; financial services; and business & professional services. The Inland Empire is also a growing manufacturing center. The largest manufacturing components are fabricated metals products; the textile mills & apparel; transportation equipment; plastics & rubber; and food, beverages and tobacco products. The Inland Empire's economy also has an international trade aspect, in that it is a major transportation hub for both rail and truck service, has the Ontario International Airport (a UPS hub, both small packages and air freight, and for Asian service), and is a major distribution center for firms moving goods through Southern California's ports to the rest of the U.S. According to the Los Angeles County Economic Development Corporation (LAEDC) 2015- 2016 Economic Forecast & Industry Outlook—February 2015,job growth in the Inland Empire outpaced the state and the rest of Southern California for the third year in a row in 2014. The Inland Empire suffered a more severe blow during the Great Recession and took longer to turn around so this is a welcome development. Job gains have reduced the unemployment rate and have contributed to rising personal income, which has supported growth in a number of consumer-driven industries. Wage and salary (nonfarm)jobs in the Inland Empire grew at a rate of 2.6% in 2014, outpacing the state's 2.2% growth rate during the same year. With 1.26 million jobs in 2014, the region is still shy of the prerecession annual peak of 1.29 million jobs from 2007. It should surpass that threshold in 2015, more than five years after the technical end of the recession. The unemployment rate in 2014 fell to 8.5%, down from 10.2% a year earlier, and down significantly from the recession-era peak of 14.3% in 2010. Job creation accounted for most of 15 the decline in the unemployment rate, while the labor force increased marginally(0.2%) from 2013 to 2014. Most of the job gains in the Inland Empire last year were in a handful of industries. One out of every five jobs created in 2014 was in the health care and social assistance sector. The bulk of the remaining job gains were concentrated in leisure and hospitality, administrative, support and waste services, retail trade, and transportation, warehousing and utilities. Noteworthy increases also occurred in construction and government, the latter finally recovering from the job cuts that were exacted in the wake of the recession when government coffers were severely depleted. While consumer-serving industries such as leisure and hospitality, and retail trade have seen large gains in absolute terms, other business-serving industries (transportation and warehousing, wholesale trade, professional, scientific and technical services) have also added jobs. Meanwhile, nondurable goods manufacturing, financial services, management of companies and enterprises, and other(personal) services lost jobs over the course of the year. Trends In Major Industries Goods Movement: The goods movement industry includes transportation and warehousing along with wholesaling. The industry employed nearly 140,000 workers in the Inland Empire in 2014, which accounted for just over 11% of total nonfarm employment. Transportation and warehousing employment increased by 4.6% (or 3,600 jobs) over the year in 2014 to 82,200 jobs. Wholesale trade added 1,700 jobs (up by 3.0%) over the same period, with employment averaging 57,700 jobs in 2014. The region's goods movement industry has benefited from increased activity at the Ports of Los Angeles and Long Beach during the last two years resulting from the pickup in U.S. economic growth. The number of containers passing through the twin ports was stuck at roughly 14 million from 2010 through 2012, but jumped by 3.4% to 14.6 million in 2013, and by 3.8% to 15.2 million in 2014, in spite of ongoing labor disputes and port congestion. Given the economic fundamentals of the U.S. and its trading partners, container activity has the potential to achieve a new record high in 2015. Such an outcome depends on timely resolution to the pending labor negotiations and clearing the current backlog of vessels and containers as quickly as possible. Real Estate: Like so much of the region and the U.S., the housing sector in the Inland Empire turned in an uneven performance in 2014. The median price of a home in Riverside County rose to levels not seen since early 2008, with a 2014 median of$293,000. San Bernardino's median price has also been on the rise, increasing to $239,000 in 2014, roughly on par with home prices during the middle of 2008. After posting double digit price increases through most of 2014, median price appreciation slowed to single digits towards the end of 2014, long after the other counties of Southern California experienced a similar slowdown. Rising prices were partly attributable to the limited supply of homes for sale, which in turn resulted in an 8.1% year-to-year decline in sales in 2014. The unsold inventory(supply) of existing homes in Riverside County was just 4.7 months in December while the figure for San Bernardino was 4.4 months. Both readings are less than a month higher than a year ago and inventory levels continue to be somewhat below long-run average levels. On the supply side, 16 low inventories have constrained sales, while demand has been hindered by declining affordability and tighter-than-normal underwriting standards. New home construction responded to tight market conditions and higher home prices in 2013 with a 57% increase in new residential permits issued. Uncertainty about the future direction of the market cooled homebuilding activity in 2014—new home permits increased by just 2.6%. Pent-up demand is expected to speed up the housing market over the next two years; permits should advance more quickly, with a jump of 33% expected in 2015 followed by a gain of 23.3% in 2016. Even with these large percentage gains, permit levels during the next two to three years will remain well below peak levels of the last decade. About two out of three homes built in 2014 were single-family homes, a pattern that should continue into 2015 with the share of single- family homes rising to 75% in 2016. The Inland Empire housing market will continue to register gains in 2015. The supply of new and existing homes for sale should increase in response to stronger demand as population grows and as the financial condition of households in the region improves. In turn, both higher prices and sales are expected. Looking Ahead While job growth in 2014 did not match the 4.0% growth rate of the previous year, the 2.6% increase was still among the fastest in the state. Jobs should grow by 2.8% in 2015 and 2.5% in 2016, with annual wage and salary employment expected to hit a new high. Over the next two years, nearly all industries will add jobs, with the largest increases expected in health care and construction (one out of every three jobs), followed by leisure and hospitality, administrative, support and waste services, and retail trade. Transportation, warehousing and utilities will continue to grow, while, while construction jobs will accelerate in response to an uptick in new residential and nonresidential building across the region. Job losses will continue in financial and other services. As the Inland Empire's industries grow over this year and next, the unemployment rate will fall from 8.5% in 2014 to 7.6% this year and 7.1% in 2016, below the 8.8% average since 2002. As the economy moves forward, and population growth accelerates, personal income will grow by 5.0% in 2015 and 5.8% in 2016, and give rise to further gains in taxable sales and continued job growth in population-serving industries. Coachella Valley Overview Location Coachella Valley comprises the easterly fringe of the Inland Empire region, located in the low- desert area surrounded by the San Jacinto, Santa Rosa and Little San Bernardino Mountains. The location is approximately 50 miles east of the City of Riverside, 100 miles east of Orange County, 120 miles east of Los Angeles and 150 miles northwest of San Diego. 17 Access Primary access to Coachella Valley is provided by the east-west Interstate 10, traversing and/or bordering portions of the cities and communities. Secondary access is provided by State Highways 62, 74, 86 and 111. Air transportation is provided by the Palm Springs International Airport. Population Coachella Valley contains nine incorporated cities: Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage. Unincorporated communities include Bermuda Dunes, North Palm Springs, Sun City Palm Desert and Thousand Palms. According to the Census 2010, the Coachella Valley incorporated cities contained a population of 344,408. As of January 1, 2015, the Coachella Valley incorporated cities contained a population of 369,596, an increase over the Census 2010 of 25,188 (7.3%) new residents. Being a resort destination, the population swells by 50% plus in peak season. Economic Profile The Coachella Valley region is characterized as a destination for national tourism, conventions and off-season living, as well as its potential as a home to aging baby boomers looking to retire in a recreational mecca, plus its agricultural production and medical care. On a long term competitive basis, the Coachella Valley is helped by its low water and natural gas prices and industrial lease rates. It ranks in the middle among key western non-California cities on average labor costs, office lease rates and housing costs (especially in areas where most workers live). Its labor force quality is not good and its competitiveness is badly hurt by the regulatory, tax and electrical rate environment created by California policies and laws. With 124 golf courses, the Coachella Valley is known as the "golf capital of the world." Other cultural and sports events offered include the Palm Springs International Film Festival, Kraft Nabisco Championship (LPGA) and Humana Challenge (PGA) golf tournaments, BNP Paribas Open (ATP and WTA) tennis tournament, and two —weekend music juggernauts known as the Coachella Valley Music and Arts Festival and Stagecoach Festival. As the flow of the tourist- oriented people and seasonal second homeowners to the Coachella Valley is heavily dependent upon U.S. discretionary income, the Coachella Valley's economy has tended to have an exaggerated business cycle: soaring in good times and plunging in bad times. The region has grown up as an important Southern California and national retirement center. As a result, an important portion of its economy is devoted to providing services to an aging population. This is seen in its health care industry as well as its retail, restaurant and entertainment (includes golf course and tennis clubs) sectors. An economy that evolves based upon providing services to tourists, conventions, seasonal second homeowners and a growing base of retirees is one in which a significant share of the job base is in retailing, consumer services, hotels, amusement and construction. The skills required to work in these sectors often 18 do not require well-educated workers. The major exception to this fact is the Valley's large health care sector. The Great Recession has taken its toll on the Coachella Valley region economy. The Coachella Valley's economic base is largely driven by money coming to the area through five sectors. A strong housing sector was the newest ingredient in the region's economy from 2000-2007, however was severely impacted starting in 2008 due to the Great Recession. Tourism has been a major staple of the region, and like the housing sector, was also heavily impacted by the recession. The medical care sector has continued to increase. The agricultural sector has generally fluctuated. Retail sales contribute to the Coachella Valley's economic base in that a significant source of the spending is from money brought to the area by tourists and convention goers. This sector experienced strong growth from 2001-2008, and like the other economic sectors, was severely impacted by the recession. The Coachella Valley's economy peaked in 2004, but hit bottom in mid-2009. The region started to see some improvement beginning in 2012. According to John Husing, an economist who specifically studies the Inland Empire and the Coachella Valley, at the Coachella Valley Economic Partnership annual event on October 30, 2014, the Coachella Valley sits on the brink of full recovery and is expected to regain the jobs lost in the recession by next year. During the recession, the Valley lost 19,200 jobs over the five years after 2007. Husing estimates that by the end of this year, the desert will have regained 14,600 of those jobs, leaving a shortage of 4,600 positions. Overall, Husing presented an optimistic outlook. The desert has an unemployment rate of 8.5%, lower than 9.2% rate in the county. Tourism continues to drive the desert economy, with record average hotel room rates and increasing hotel occupancies. Husing's outlook for the Valley mirrors the economic trend across Southern California. According to CoreLogic DataQuick, the median price for a home in Coachella Valley crept up to $300,000 in April 2015, and inventory dropped for the fourth consecutive month. Over the last 12 months, homes have fetched a median price of$287,375. New construction homes fetched a median price of$333,500 in April 2015, one of their lowest levels in the last year. But prices for resale homes diminished to a median of$320,000, among the highest in the last 12 months. In conclusion, as Southern California and the Inland Empire's economy recovers from the Great Recession, the Coachella Valley's economy will recover, albeit at a slower or lagging pace due to its more outlying/easterly fringe location. City of Palm Springs Overview Location Palm Springs—encompassing 94.975 square miles—is located at the westerly end of the Coachella Valley at the base of the San Jacinto Mountains. The city is bordered to the north and south by unincorporated territory; to the east by Cathedral City and Rancho Mirage; and to the west by unincorporated territory and San Jacinto Wilderness area. 19 Access Primary access is provided by Interstate 10 east-bound (bordering and traversing the northerly portion of Palm Springs) and Palm Canyon Drive(SR-11) from Interstate 10, and Highway I I I west-bound. Several primary arterials provide secondary access. Population Palm Springs—incorporated in 1938 —ranks as the fourth most populous city of Coachella Valley's nine incorporated cities. From 2000-2014, Palm Springs population increased from 42,805 to 46,135, a gain of 3,330 people(7.8%) in 14 years. This is the second lowest gain in new residents among the Coachella Valley's nine cities. According to the Census 2010, the city contained a population 44,385. As of January 1, 2015, the city contained a population of 46,611, an increase over the Census 2010 of 2,226 (5.0%) new residents. Economic Profile Palm Springs is characterized as a mature community that has evolved from a getaway for Hollywood people since the 1930s to a resort and recreation community attracting tourists from around the globe. The city's economy is tourist-driven and contains more than 40% of all hotel rooms in the Coachella Valley. Leading employment industries are retail (24.0%), health (17.7%), hotel/amusement (13.5%), small sectors (13.1%), other services (10.6%), distribution (7.5%), education (5.8%), construction (4.0%) and business services (3.8%). Since 2000, Palm Springs' economy has gone through four periods. In the 2001-2003 period impacted by the dot.com recession, the city's job growth roughly matched the pace of the surrounding Inland Empire. As the housing boom heated up from 2004-2007, its employment expansion lagged behind the wider region, perhaps because a lack of developable land. As the recession began, Palm Springs added jobs faster than the region in 2007 (2.2% v. 0.2%) and shrank less in 2008 (41% v. -3.6%). This reversed itself in 2009 when the job loss was -0.9% versus -6.8% for the region and again in 2010 (-3.3% v. -0.8%). In the nascent recovery period, the city added 1.4% to its jobs base in 2011 versus the region's 0.4%. This occurred again in 2012 with the city's employment up 2.8% compared to the region's 2.0%. Palm Springs unemployment rate was 5.1% in April 2015, down from 6.4% in April 2014. Median home price was $352,500 in April 2015, up 13.7% from $310,000 in April 2014. The City of Palm Springs is currently undergoing a downtown revitalization plan that includes a host of innovative community and economic development projects, incentive programs, multi- million dollar hotel renovations and original special events and tourist attractions. The major revitalization project in process is the redevelopment of the former Desert Fashion Plaza, an obsolete 300,000 square foot enclosed shopping center situated on a 13-acre site. The proposed Museum Market Plaza is currently under construction and comprises a mixed-use development to contain a 190-room, four-star, Palomar Hotel by Kimpton Hotels and restaurants, multiplex movie theater and more than 250,000 square feet of restaurant and retail space. 20 Conclusion Overall, the long-term outlook for Palm Springs is positive, subject to continued economic recovery. Subject Property Environs The subject property is located in the Downtown district of Palm Springs,just north of the Historic Village Center on the east side of North Palm Canyon Drive. Uses along North Palm Canyon Drive within the Downtown district are mixed and include the Museum Market Plaza (under construction), Hyatt Palm Springs hotel, restaurants, boutiques, art galleries, shops, professional services, etc., and is the highest volume vehicle/foot traffic corridor in Palm Springs. In close proximity to the north is the proposed Lawrence Rael project comprising a 150-room hotel and retail complex and in close proximity to the south is the Hyatt Palm Springs hotel and the Museum Market Plaza. As previously noted, five contiguous parcels located adjacent north, east and south of the subject property totaling 48,244 square feet or 1.11 acres were recently purchased for redevelopment to a boutique hotel. Buyer was North Palm Canyon Drive Development. 21 DeLonme Street Atlas USA®2010 -------------- --------------------- Regional Map --------------------------------------- d ii J p 1� Desert Hot Springs I. 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Ob DIJN31tld S g m 3AV INIA N r p�.P, h[' LI _ CAMINO MIRASOL N PATENCIO RD u JN R�' S TAHQURZ DR p C •/i\ ONTE V1S w z al m \L S L/'31NOM VIA,N SfA 31NOW VIA N � 0 0 AN RD e z Z4ARD RD Oy NVOSIIL N Qo- yIO 2Vd01 N 3 U M00% Ob CHVN031 N (O�Q,P ; z m z NPpb 1'. S-N ROSEI-AVE N ROSE AVE y� o g b0 b1SIA N Cos RO S OR ; ry N 7ANIS OR y bO OIIW N� bO 13tlHOIN 4 ai h E s • w 6 E m b 0 a � m 0 O LAND DESCRIPTION Physical Characteristics Location: Interior lot located on the east side of North Palm Canyon Drive, fifth lot north of Amado Road. Status: Finished lot. Shape and Size: According to the assessor's map, the lot is rectangular having 40.15 feet street frontage and a uniform depth of 52.16 feet containing 2,094 square feet. Toyozraphv: Level at street grade curb grade. Site Utility: 100%. Exposure: The lot fronts North Palm Canyon Drive, a major arterial providing"high identity" exposure. Flood Zone: The property does not lie within a Special Flood Hazard area. Fault-Rupture Hazard Zone: The property does not lie within a defined Alquist-Priolo Earthquake Fault Zone. Seismic Hazard Zone: The property is located in a"low" liquefaction susceptibility area. Geologic Hazard Zone: The property does not lie within an earthquake-induced landslide hazard zone. Wind Hazard Zone: The property is located in a "high"wind hazard zone, i.e., susceptible to erosion. Blowsand Hazard Zone: The property is located in a blowsand area. Utilities: All public utilities and services are available. Respective utilities are overhead. Utility Provider Water Desert Water Agency Wastewater City of Palm Springs Natural Gas The Gas Company Electricity Southern California Edison Telephone Verizon California Cable Time Warner Cable Trash Disposal Palm Springs Disposal Service 24 Streets and Access: North Palm Canyon Drive is a one-way, south-bound, major arterial providing three travel lanes and non-metered parking. The property has no on-site parking and no street access is provided. Public Condemnation: There is no known future public condemnation affecting the subject property or properties in close proximity that would have a negative effect on value. External Elements: No elements were observed adjacent to or in close proximity to the subject property that could be considered detrimental to the development of a legally permitted use. In conclusion, no adverse physical conditions are apparent or known which would restrict development of a legally permitted use. Legal Characteristics General Plan Land Use Designation: Central Business District. Zoning: C-B-D— Central Business District with a Resort Combining Zone Overlay. The C-B-D zone is intended for the central business district, primarily retail business in character, with related hotels, multi-family dwellings, and service, office, cultural and institutional uses. The central business district is intended to be a compact, lively, active, intensively used area catering to the pedestrian. Planted walkways, covered walks and open plazas that provide for sitting, dining, conversing, gathering and window shopping are permitted and encouraged. The resort combining zone overlay is intended primarily to provide for visitor accommodations and services. Property Development Standards: Minimum Lot Area 9,600 SF Minimum Lot Width 75 Ft. Minimum Lot Depth 128 Ft. Maximum Building Height 30 Ft. Easements: No preliminary title report was provided for review. The value opinion provided herein is predicated on the assumption that there are no easements that would have a material negative affect on value. Liens: The value opinion provided herein is predicated on the assumption that the subject property is free and clear of all liens. Economic Characteristics Bonds: The property is not encumbered by any development or community facility district bonds. 25 Historic Site Designation: The subject property known as the"Cork'n Bottle Liquor Store" was designated Class 1 on May 1, 1996. The structure was built in 1935 and designated a historic site for its depression era art moderne style building. 26 IMPROVEMENT DESCRIPTION The following description of the existing improvements is based upon a physical investigation including building measurements. A building sketch is provided on the following page. Building Type: Two-Unit Storefront Retail Building Building Structure No. of Buildings: One. No. of Stories: One. Construction Type: Class C—Masonry. Year Built: 1935. Building Area and Specifics Gross Building Area: 1,590 SF. Site Coverage: 76%. Building Features Foundation: Concrete. Floor: Concrete slab. Structural Walls: Masonry. Exterior Finish: Painted stucco. Roof Structure and Covering: Wood with built-up covering. Windows and Doors: Storefront system. Heating and Cooling: Gas fired ceiling hung heater and rooftop mounted air conditioning units. Electrical Power: Assumed adequate. Restrooms: One two-fixture restroom. 27 BUILDING SKETCH 26' Storage 0) ro L RR O N ro } 12' ry Smoke Liquor Shop Store 344 342 38' North Palm Canyon Drive ,8 Interior Finish Floor: Painted concrete. Walls: Painted masonry. Ceiling: Acoustic tiles and particle board. Liehtina: Fluorescent strip fixtures. On-Site Parking Spaces Provided: None. Non-metered street parking is available. Improvement Features Conclusion Ouality and Condition: The building improvements exhibit average quality construction and fair to average condition. Miscellaneous deferred maintenance was observed. The structural integrity of the building is assumed to be sound. The side yard storage area contains a masonry wall and gate. 29 ANALYSIS OF DATA AND CONCLUSIONS 30 HIGHEST AND BEST USE ANALYSIS The concept of highest and best use represents the premise upon which value is based. Highest and Best Use is defined as: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability.4 This definition is applied specifically to the highest and best use of land. It is recognized that in cases where a site has existing improvements, the concluded highest and best use as if vacant may be different from the highest and best use given the existing improvements (as improved). The existing use will continue, however, until the land value, in its highest and best use, exceeds that total value of the property under its existing use plus the cost of removing or altering the existing structure. Implied in this definition is a recognition of the contribution of a specific use to the community environment or to the community's development goals, in addition to wealth maximization of individual property owners. Also implied is that the conclusion of highest and best use results from the appraiser's judgment and analytical skill, i.e., that the use determined from the analysis represents an opinion, not a fact to be found. Highest and Best Use Analysis involves the subject property according to the following four criteria. Legally Permissible: This criterion relates to the legality of an intended use. A community's development policies or environmental goals may encourage certain uses and preclude others. Other factors impacting a site's legal permissibility include private restrictions, state and national regulations, and other factors. Physically Possible: This second criterion pertains to physical characteristics impacting the development potential of the site such as size, shape, topography, availability of utilities and soil conditions. The lack of impairment of any of these factors may make certain types of development impossible or impractical. Financially Feasible: This factor pertains to the notion of economic viability, i.e., is the use profitable? To answer this question, it is usually necessary to present an analysis of the market for the intended use. Maximally Productive: The fourth test is to access whether a proposed or existing use produces the greatest net return to the land. "Ibid.page 93. 31 The highest and best use analysis of the subject property is not intended to be an exhaustive analysis of every possible use. Rather, it is intended to provide adequate analysis of the most likely and/or the most reasonable alternative use. The following highest and best use analysis addresses both issues of"as though vacant" and "as improved." Highest and Best Use "As Though Vacant" The C-13-1) zone permits a broad range of commercial uses. In respect to the current property development standards, the subject's small lot area and dimensions represent a non-conforming lot. Considering the subject property's site-specific location characteristics; the site's physical characteristics; no apparent or known adverse site conditions; and surrounding uses, the most probable legally permitted use would be for a retail use subject to meeting the off-street parking requirements. In consideration of the recent acquisition of the land assemblage surrounding the subject lot for redevelopment of a boutique hotel, the most probable use would be for assemblage with the adjacent properties and incorporated into the proposed redevelopment project. Highest and Best Use "As Improved" The subject property comprises a 2,094 square foot lot improved with a 1935-built storefront retail building containing a gross building area totaling 1,590 square feet. Site coverage is 76%. The existing use represents a legal "grandfathered" conforming use. The physical characteristics of the site are suitable to support the existing use. The property is currently tenant-occupied on terms of month-to-month. The most probable buyer would be the adjacent property owner for inclusion into the land assemblage for redevelopment, subject to approval from the historic site preservation board relating to its historic site designation. APPROACH TO VALUE Referencing the Scope of Work, the valuation method is limited to only the sales comparison approach. The comparison analysis provided in the following approach to value is not intended to be an accurate, scientific process that exactly identifies and quantifies the value attributes of the comparable data and the subject property, but rather they reflect opinions and speculations regarding what I believe to be reasonable explanations for the comparable price variations. Collectively, the comparisons allow the reader to ascertain the appropriateness and logic of the comparisons leading to a reasonable and supported value opinion. 32 SALES COMPARISON APPROACH In the sales comparison approach, an opinion of market value is developed by comparing properties similar to the subject property that have recently sold, are under contract, or listed for sale. A major premise of the sales comparison approach is that an opinion of the market value of a property can be supported by studying the market's reaction to comparable and competitive properties. A search was conducted within the subject property's general market area for comparable properties that have recently sold, are under contract, or listed for sale. Several properties were investigated of which four sales were determined to be most relevant and appropriate in developing a value opinion. These sales are summarized following with accompanying location map and photographs. 33 Summary - Comparable Sale Properties Property Subject Sale No. 1 Sale No.2 Sale No.3 Sale No.4 Address 342 N. Palm Canyon Dr. 340 N. Palm Canyon Dr.& 120 W.Arenas Rd. 190 E. Palm Canyon Dr. 74220 Hwy. 111 Palm Springs 311 N. Indian Canyon Dr. Palm Springs Palm Springs Palm Desert Palm Springs Assessor's Parcel No. 513-081-017 513-081-011&016 513-143-006 508-346-011 62S-08S-006 Property Description Property Type Two-Unit Storefront Two Storefront Retail Multi-Tenant Storefront Six-Unit Storefront Single-Tenant Storefront Retail Building Buildings Retail/Office Building Retail Building Retail Building Year Built 1935 1960s 1950 1962 1960S No.of Stories One One&Two Two One One &Part Two Condition Fair to Average Fairto Average Good Average Fairto Average Gross Building Area 1,5905F 9,700SF+/- 7,687SF 2,145SF 2,374SF Land Area 2,094SF 21,2885F 6,440SF 4,866SF 6,602SF Site Coverage 769/ 30%+/- 60% 44% 30% Sale Information Sale Price N/Ap. $1,900,000 $1,900,000 $365,000 $525,000 Recording Date N/Ap. 8/3/2015 10/30/2013 9/16/2013 10/2/2014 Document No. N/Ap. 345392 515153 448653 377128 Terms of Sale Cash To Seller Assumed Cash To Seller Cash To Seller Cash To Seller Cash To Seller Property Rights Conveyed Fee Simple Estate Leased Fee Interest Leased Fee Interest Leased Fee Interest Fee Simple Estate Conditions of Sale None;Arm's-Length None;Arm's-Length None;Arms-Length None;Arm's-Length None;Arm's-Length Buyer Motivation Owner-User Developer Investor Investor Owner-User j Sale Indicator � Price Per SF N/Ap. $195.88 $247.17 $170.16 $221.15 Confirmation Source _ Seller's Broker& Seller's Broker& Seller's Broker& Seller's Broker& Public Records Public Records Public Records Public Records 34 ! • ' DeLorme Street Atlas USA0 2010 Location Map - Comparable Sale Properties Desert Hot Sponge 0 52 North Palm Springs I�111N'�'alnr rver Subject Property cunt a S i_ EMSTA�CHIND BIt y Sale No.2 s --------i1� Thousand Palms a° P y • a Sale No. Ij R.2 m 0 Sale No.3 P�14xM� cathedral city F'arA n. �`o O R Sale No.4 Rancho Mirage N1Hfb49(C Palm Desert Rlvrr �• •Indian Wells i4 tt1 aI \gyp •La Vulata� 4 j 74 74 Data use subject to license tad Scale 1 '200.000 J DeLorme.DeLorme Street Atlas USA®2010. ,.,,i„r4i ;-- �._--A..� T vnmv delorme.com 1"=3,16 mi Data Zoom 10-0 r Sale No. 1 120 W. Arenas Rd., Palm Springs 340 N. Palm Canyon Dr. & 311 N. Indian Canyon Dr., Palm Springs Wil a, x a n . F � y Sale No. 3 Sale No. 4 190 E. Palm Canyon Dr., Palm Springs 74220 Hwy. 111, Palm Desert 36 Comparable Sale Properties Analysis In developing an opinion of market value for the subject property, the comparative analysis of the data focuses on the similarities and differences that affect value which include real property rights conveyed, financing terms, conditions of sale, expenditures made immediately after purchase, market conditions, location, physical characteristics, economic characteristics, use of the property and non-realty components of value. Elements of comparison are tested against market evidence to estimate which elements are sensitive to change and how they affect value. The common market unit of comparison is price per square foot of gross building area. The comparable sales provide unadjusted prices ranging from $170.16 to $247.17 per square foot of gross building area. Following is an analysis of the sales. Real Property Rights Conveyed: Sale Nos. 1-3 involve the conveyance of a leased fee interest. Sale No. 1 was purchased for redevelopment. Sale Nos. 2 and 3 involve investor acquisitions at or near market rent. Sale No. 4 involves the conveyance of a fee simple estate. No adjustment is required. Financing Terms: All of the sales involve tenns of cash to seller and no adjustment is required. Conditions of Sale: All of the sales were reported to represent arm's-length transactions and no adjustment is required. Expenditures Made Immediately After Purchase: None of the sales involve known expenditures immediately after purchase that would require adjustment. Market Conditions: Recording dates range from September 2013 to August 2015, i.e., past 24 month period from the effective date of the appraisal—a period of similar market conditions and no significant adjustment is required. Location: Sale No. 1 is located adjacent south of the subject property and involves a street-to- street site having frontage on North Palm Canyon Drive, same as the subject property, and extending east having frontage on North Indian Canyon Drive, a less desirable location requiring an upward adjustment. Sale No. 2 is located approximately three blocks south within the Historic Village Center district and pertains to a signalized corner site fronting North Palm Canyon Drive, a more desirable location requiring a downward adjustment. Sale No. 3 is located in South Palm Springs and pertains to an interior site fronting East Palm Canyon Drive, a less desirable location requiring an upward adjustment. Sale No. 4 is located in Palm Desert and pertains to an interior site fronting an access street paralleling Highway 111, a less desirable location requiring an upward adjustment. Physical Characteristics: This category addresses year built/condition, building size and land area. 37 Year Built/Condition: The sales year built ranges from 1950 to the 1960s. Sale Nos. 1 and 4 reflect similar condition and no adjustment is required. Sale Nos. 2 and 3 reflect superior condition and tenant appeal requiring a downward adjustment. Building Size: The building size ranges from 2,145 to 9,700 square feet. Sale No. 1 having the largest building area contains two buildings having 2,100 and 7,600 square feet. Overall, no significant adjustment for building size is considered. Land Area: Land area ranges from 4,866 to 21,288 square feet, all larger than the subject site containing 2,094 square feet. Considering site utility, no significant adjustment is considered. Economic Characteristics: All of the sales have similar economic characteristics and no adjustment is required. Use of the Property: All of the sales involve a similar use and no adjustment is required. Non-Realty Components: No non-realty components are included in the valuation of the subject property and none are included in the comparable sales. Based on the preceding analysis, an adjustment grid is provided following. Element of Comparison Sale No.1 Sale No.2 Sale No.3 Sale No.4 Price Per SF $195.88 $247.17 $170.16 $221.15 Real Property Rights Conveyed Adjustment 0% 0% 0% 0% Adjusted Price $195.88 $247.17 $170.16 $221.15 Financing Terms Adjustment 0% 0% 0% 0% Adjusted Price $195.88 $247.17 $170.16 $221.15 Conditions of Sale Adjustment 0% 0% 0% 0% Adjusted Price $195.88 $247.17 $170.16 $221.15 Expenditures Made Immediately After Purchase Adjustment 0% 0% 0% 0% Adjusted Price $195,88 $247.17 $170.16 $221.15 Market Conditions Adjustment 0% 0% 0% 0% Adjusted Price $195.88 $247.17 $170.16 $221.15 Location Adjustment + 10% - 5% + 30% + 5% Physical Characteristics Year Built/Condition Adjustment 0% - 5% - 5% 0% Building Size Adjustment 0% 0% 0% 0% Land Area Adjustment 0% 0% 0% 0% Economic Characteristics Adjustment 0% 0% 0% 0% Use of the Property Adjustment 0% 0% 0% 0% Non-Realty Components Adjustment 0% 0% 0% 0% Net Adjustment + 10% - 10% + 25% + 5% Adjusted Price $215.47 $222.45 $212.70 $232.21 Adjusted Price Range: $212.70 To$232.21 Mean: $220.71 Median: $218.96 38 Value Conclusion After adjustment, the comparable sales provide value indicators ranging from $212.70 to $232.21 per square foot. Indicated mean and median are $220.71 and $218.96 per square foot, respectively. Based upon the analysis undertaken, reasonably considering the varying attributes that influence the range in prices in comparison with the subject property, it is my opinion that the subject property's as is market value is $220.00 per square foot. Gross Building Area: 1,590 SF @ $220.00 = $349,800 Concluded As Is Market Value by the Sales Comparison Approach: 35�0 000 FINAL VALUE CONCLUSION As a result of my analysis, I have formed an opinion that the as is market value of the fee simple estate in the subject property, subject to the definitions, extraordinary assumptions, general assumptions and limiting conditions, and certification set forth in the report, as of September 4, 2015, was: Three Hundred and Fifty Thousand Dollars 39 APPRAISER'S QUALIFICATIONS LARRY L. SIMON, MAI Real Estate Appraiser And Consultant Member, Appraisal Institute 75-153 Spyglass Drive • Indian Wells, California 92210 (760) 610-1820 • FAX (760) 262-3149 • E-Mail: simon.appraiser@gmail.com QUALIFICATIONS AND EXPERIENCE SUMMARY Position: Real Estate Appraiser and Consultant providing a broad spectrum of valuation and consulting services to financial institutions, government, corporations, developers, title companies, law firms and private entities since 1972. Education: Bachelor of Science degree in Finance, Insurance and Real Estate. Professional Membership: MAI Designation from the Appraisal Institute— Certificate No. 7217. State Certification: Certified General Real Estate Appraiser, State of California ID No. AGO04310. Types of Properties Appraised • Residential: Single Family Homes, Condominium Units, Subdivisions, Condominium/Planned Unit Developments, Apartment Complexes, Mobile Home Parks, Recreational Vehicle Parks and Land. • Commercial: Office (Low to High Rise, Single-and Multi-Tenant), Medical Office, Office Condominiums, Shopping Centers (Neighborhood and Community), Retail (Strip and Free-Standing), Auto-Care Centers, Bank Branches, Motels, Hotels, Bed & Breakfast Facilities and Land. • Industrial: Business Parks, Industrial (Single-and Multi-Tenant), Manufacturing, Warehouses, Distribution, Research& Development, Self-Storage Facilities, Truck Terminals and Land. • Special Purpose: Auto Dealerships, Restaurants, Bowling Alleys, Religious Facilities, Private Schools, Funeral Homes, Tennis/Fitness/Swim Clubs and Private Clubs. Areas of Specialization • Property Type: General and Medical Office Properties, Retail Properties, all Industrial Properties, Auto Dealerships, Manufactured Housing/Mobile Home/Recreational Vehicle Parks and Ground Leased Properties. • Litigation: General Valuation, Environmental Issues, Bankruptcy, Probate, Mobile Home Park Closure and other valuation matters. Expert Testimony: Expert witness in the Superior Courts of Orange and San Diego Counties and Arbitration. Geographic Areas: Counties of Orange, Los Angeles, San Diego, Riverside, San Bernardino, Kern and Ventura. Representative Clients • Financial Institutions: Bank of America, Bank of Orange County, Bank of the West, The Boston Company, Boston Safe Deposit &Trust Company, Citicorp, California United Bank, City National Bank, First Bank and Trust, First California Bank, First Hawaiian Bank, Hawthorne Savings, Imperial Thrift & Loan Association, Mission Valley Bank, Newport Balboa Savings, Pacific Western Bank, Philadelphia Savings Fund Society, Provident Bank, South Bay Bank, Universal Bank, U.S. Bank and Wells Fargo Bank. • Law Firms: Corbett & Steelman; Gordon & Rees LLP; Katten Muchin Rosemnan LLP; Kinley& Styskal; Kolodny & Pressman; Lillick & McHose; Rutan & Tucker; Palmieri, Tyler, Wiener, Wilhelm & Waldron LLP; and Saxon, Alt, Dean, Mason, Brewer & Kincannon. • Others: Claremont University Center/The Claremont Colleges; Palo Verde College and College of the Desert. OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY PUBLIC NOTIFICATION PROPOSED SALE OF THE CORK N BOTTLE PROPERTY AT 342-344 NORTH PALM CANYON DRIVE APN 513-081-017 -.y Date: November21, 2016 Subject: Cork n Bottle AFFIDAVIT OF PUBLICATION I, Kathleen D., MMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was published in the Desert Sun on November 10, 2016. 1 declare under penalty of perjury that the foregoing is true and correct. 9�r Kathleen D. Hart, MMC Chief Deputy City Clerk AFFIDAVIT OF POSTING 1, Kathleen D. Hart, MMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on November 8, 2016. 1 declare under penalty of perjury that the foregoing is true and correct. Kathleen D. Hart, MMC Chief Deputy City Clerk The Desert Sun 750 N Gene Autry Trail Certificate of Publication Palm Springs, CA 92262 RECEIVE D 760-778-45781 Fax 760-778-4731 I T Y OF PALM S P R I fr G State Of California ss: 2111 NOY 16 PM 1: 07 County of Riverside JAMES THOMP';i, i- CITY CLERK Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 92263 Order# 0001720654 1 am over the age of 18 years old, a citizen of the United States and not a party to, or have interest in this matter. I hereby certify that the attached advertisement appeared in said newspaper(set in type not smaller than non pariel) in each and entire issue of said newspaper and not in any supplement thereof on the following dates,to wit: Newspaper:The Desert Sun 11/10/2016 IYO 1643: NOTICE OF PUBLIC MEETING OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE I acknowledge that I am a principal clerk of the PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY PROPOSED SALE OF printer of The Desert Sun, printed and 342-344 NORTH PALM CANYON DRIVE APN 513-081-017 published week) in the City of Palm Springs, NOTICE IS HEREBY GIVEN pu suant to California Health and Safety Code Section P Y 7 34181, the Oversight Board of the Successor Agency to the Palm Springs Com- County of Riverside, State of California.The ber 21.Redevelopment 9Seery will hold a public meet ingg on Monday,Novem. Desert Sun was adjudicated a Newspaper of Chambe20at Palm OSpersighgs CBoard meeting begins at 4:p0 p,m.,in the Council Thengur gg h' Hall, 3200 East Tahquitz Canyon Way, Palm general circulation on March 24, 1988 by the prove the sale of t e Over rkhn Board Melting opeyis to consider a resolution to a Superior Court of the County of Riverside, Drive,to North Palm Canyon Developmernt LLC at 342-344 North n the amount of$42I5,000 Canyon d to review matters regardin the disposition of the property. The Cork n Bottle State of California Case No. 191236. property is identified as Property Number 6 in the Long-Range Property Man- agement Plan,and is located at 342-344 North Palm Canyon Drive,Assessor Par- ReEVIEW OF INFORMATION.. The p gg are available for public review at City Hall between the hours Of 8:00 a.m.and Monday through Thursday.Please contact the Offsupice of the City Clerk at(760)323-8204 if you would like to schedule an appointment to review these documents. 1 declare under penalty Of perjury that the PUBUC9 OMMENTS: Response to this notice may be made verbally at the Public P tY P ) 1Y Mad t and or inversigwriBn before the meeting. Written comments may be (fordmal or hand delivery)tod by email at citycferkepalmspringsca.gov, or letter foregoingis true and correct. Executed on this 10th day o MBER, 2016 In Palm James Thompson,Cityy clerk 3200 E.Tah Ouitz ht Board Clerk/Secretary Springs, Cal rnla. Any challenge of the proposed incurt m'aPalm be Spring,, toAa s ng only those is- sues raised at the public meeting described in this notice, ai in written cse re- spondence delivered to the City Clerk/Oversight Board Clerk/Secretary a, or prior to,the public meeting.(Government Code Section 65009[b)12)). head p Questions will be given at said hearing for all interested persons to be Questions reggarding this case may be directed to Diana Shay,Redevelop. ment Coordinator,(760)323-8175. Si necesita ayuda on esta carte,portavor flame a la Ciudad de Palm Springs y puede hablar on Felipe Primera telefono(760)323-8253 x B742. TAMES THOMPSON City Clerk _ Oversight Board Clerk/Secretary Published:11y10/2016 Declarant NOTICE OF PUBLIC MEETING OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY PROPOSED SALE OF THE CORK N BOTTLE PROPERTY AT 342-344 NORTH PALM CANYON DRIVE APN 513-081-017 NOTICE IS HEREBY GIVEN pursuant to California Health and Safety Code Section 34181 , the Oversight Board of the Successor Agency to the Palm Springs Community Redevelopment Agency will hold a public meeting on Monday, November 21, 2016. The Oversight Board meeting begins at 4:00 p.m., in the Council Chamber at Palm Springs City Hall, 3200 East Tahquitz Canyon Way, Palm Springs. The purpose of the Oversight Board Meeting is to consider a resolution to approve the sale of the Cork n Bottle, property at 342-344 North Palm Canyon Drive, to North Palm Canyon Development LLC, in the amount of $425,000, and to review matters regarding the disposition of the property. The Cork n Bottle property is identified as Property Number 6 in the Long- Range Property Management Plan, and is located at 342-344 North Palm Canyon Drive, Assessor Parcel No. 513-081-017. REVIEW OF INFORMATION: The staff report and other supporting documents are available for public review at City Hall between the hours of 8:00 a.m. and 6:00 p.m., Monday through Thursday. Please contact the Office of the City Clerk at (760) 323-8204 if you would like to schedule an appointment to review these documents. PUBLIC COMMENTS: Response to this notice may be made verbally at the Public Meeting and/or in writing before the meeting. Written comments may be made to the Oversight Board by email at cityclerkCa)palmspringsca.gov, or letter (for mail or hand delivery) to: James Thompson, City Clerk Oversight Board Clerk/Secretary 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed in court may be limited to raising only those issues raised at the public meeting described in this notice, or in written correspondence delivered to the City Clerk/Oversight Board Clerk/Secretary at, or prior to, the public meeting. (Government Code Section 65009[b][2]). An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to Diana Shay, Redevelopment Coordinator, (760) 323-8175. Si necesita ayuda con esta carta, porfavor (lame a la Ciudad de Palm Springs y puede hablar con Felipe Primera telefono (760) 323-8253 x 8742. MES THOMPSON City Clerk Oversight Board Clerk/Secretary