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APPRAISAL SERVICES AGREEMENT
2�THIS APPRAISAL SERVICES AGREEMENT (the "Agreement") is made this
day of June, 2019 (herein referred to as the "Effective Date") by and between
i the City .of Palm Springs, a California charter City ("City"), and Integra Realty
Resources — Los Angeles, ("Consultant"), who agree as follows:
1. Services. Subject to the terms and conditions set forth in this
Agreement, Consultant shall provide to the reasonable satisfaction of City the
appraisal services for APN 513-460-001, 0-003, -010, -033,114.37 acres, set forth
in Exhibit "A" to this agreement. As a material inducement to City to enter into this
Agreement, Consultant represents and warrants that it has thoroughly investigated
and considered the scope of services and fully under stands the difficulties and
restrictions in performing the work. Consultant represents that it is experienced in
performing the work and will follow professional standards in performance of the
work. All services provided shall conform to all federal, state and local laws, rules
and regulations and to professional standards and practices. The terms and
conditions set forth in this Agreement shall control over any terms and conditions
in Exhibit "A" to the contrary.
2. Compensation and Fees.
a. Consultant shall be paid in accordance with the rates attached hereto as
Exhibit "A", but in no event shall Consultant's total compensation for all services
performed under this Agreement exceed fifteen thousand dollars ($15,000), without
the ,prior written authorization of the City Manager or the City Manager's designee
("City Manager"). Consultant shall be responsible for notifying the City Manager or the
City Manager's designee if the not to exceed amount is about to expend.
b. The above fee shall include all costs, including but not limited to, all
clerical, administrative, overhead, insurance, reproduction, telephone, travel, auto
rental, subsistence and all related expenses.
3. Payment.
a. As scheduled services are completed, Consultant shall submit to City
an invoice for the services completed, authorized expenses and authorized extra
work actually performed or incurred.
b. City will pay Consultant the amount invoiced within thirty (30) days
after the approval of the invoice.
C. Payment shall constitute payment in full for all services, authorized
costs and authorized extra work covered by that invoice.
4. Change Orders. No payment for extra services caused by a change
in the scope or complexity of work, or for any other reason, shall be made unless
and until such extra services and a price therefore have been previously authorized
in writing and approved by the City Manager as an amendment to this Agreement.
The amendment shall set forth the changes of work, extension of time for
preparation, and adjustment of the fee to be paid by City to Consultant.
5. Licenses, Desianation. Consultant represents that it and any
subcontractors it may engage, possess any and all licenses which are required
under state or federal law to perform the work contemplated by this. Agreement
and that Consultant and its subcontractors shall maintain all appropriate licenses,
during the performance of this Agreement. If required by City, Consultant warrants
and covenants that its principal has achieved and will maintain in good standing
throughout the term of this Agreement an " MAI" (Member of Appraisal Institute)
designation corresponding to each real property identified in Exhibit "A" to this
Agreement(e.g., residential, commercial, industrial, etc.).
Mark Here if
MAI
Required
6. Independent Contractor. At all times during the term of this
Agreement, Consultant shall be an independent contractor and not an employee of
City. City shall have the right to control Consultant only insofar as the result of
Consultant's services rendered pursuant to.this Agreement. City shall not have the
right to control the means by which Consultant accomplishes services rendered
pursuant to this Agreement. Consultant shall, at its sole cost and expense, furnish
all facilities, materials and equipment which may be required for furnishing
services pursuant to this Agreement. Consultant acknowledges that Consultant
and any subcontractors, agents or employees employed by Cor'sultant shall not,
under any circumstances, be considered employees of City.
7. Consultant Not Agent. Except as City may specify in writing and as
set forth in this Agreement, Consultant shall have no authority, express implied, to
act on behalf of City in any capacity whatsoever as an agent. Consultant shall have
no authority, express or implied,to bind City to any obligation whatsoever.
8. Assignment or Subcontracting. No assignment or subcontracting
by Consultant of any part of this Agreement or of funds to be received under this
Agreement shall be of any force or effect unless the assignment has had the prior
written approval of City. City may terminate this Agreement rather than accept any
proposed' assignment or subcontracting.
9. Insurance. Consultant shall maintain during the life of this Agreement
professional liability insurance covering errors and omissions arising out of the
performance of this Agreement with a combined single limit of $1,000,000.
Consultant agrees to keep such policy in force and effect for at least"three years
from the date of completion of this Agreement as long as such insurance is
available on reasonably acceptable terms. Consultant shall provide a certificate of
insurance evidencing such coverage. Consultant shall provide City with evidence
in the form of a certificate that should this insurance policy be canceled before the
completion of all services contemplated by this Agreement,the issuing company will
mail no less than thirty (30) days written notice to the City.
10. Time Is of the Essence. Time is of the essence in this Agreement.
Consultant shall do all things necessary and incidental to the prosecution of
Consultant's work.
11. Products of Consultant. The documents and appraisal report and other
products produced or provided by Consultant for this Agreement shall become the
property of City upon receipt. Consultant shall deliver all such products to City prior to
payment for same. City may use, reuse or otherwise utilized such products, but only
in connection with City's purchase or acquisition of the property that is the subject of
the appraisal.
12. Termination. City Manager may for any reason terminate this Agreement
by giving the Consultant not less than five (5) days written notice of intent to terminate.
Upon receipt of such notice, the Consultant shall immediately cease work, unless the
notice from City Manager provides otherwise. Upon the termination of this Agreement,
City shall pay Consultant for services satisfactorily provided and ,all allowable
reimbursements incurred to the date of termination in compliance with this Agreement,
unless termination by City shall be for cause, in which event City may withhold any
disputed compensation. City shall not be liable for any claim of lost profits.
13. Maintenance and Inspection of Records. In accordance with generally
accepted accounting principles, Consultant shall maintain reasonably full and
complete books, documents, papers, accounting records, and other information
(collectively, the "records") pertaining to the costs of and completion of services
performed under this Agreement. City Manager shall have access to and the right to
audit and reproduce any of Consultant's records regarding the services provided under
this Agreement. Consultant shall maintain all such records for a period of at least three
(3) years after termination or completion of this Agreement. Consultant agrees to make
available all such records for inspection or audit at its offices during normal business
hours and upon three (3) days' notice from City Manager, and copies thereof shall be
furnished if requested.
14. Governina Law, Venue. This Agreement shall be construed in
accordance with and governed by the laws of the State of California and Consultant
agrees to submit to the jurisdiction of California courts. The venue for any dispute
arising from or related to this.Agreement shall be the Superior Court of the State of
California, County of Riverside, and Palm Springs Courthouse.
15. Intearation. This Agreement constitutes the entire agreement of the
parties. No other agreement, oral or written; pertaining to the work to be performed
under this Agreement shall be of any force or effect unless it is in writing and signed by
both parties. Any work performed which is inconsistent with or in violation of the
provisions of this Agreement shall not be compensated.
16. City Officers And Employees: Non-Discrimination
16.1 Non-Liability of City Officers and Employees. No officer or
employee of City shall be personally liable to the Consultant, or any
successor-in-interest, in the event of any default or breach by City or
for any amount which may become due to the Consultant or its
successor, or for breach of any obligation of the terms of this
Agreement.
16.2 Conflict of Interest. Consultant acknowledges that no officer or
employee of the City has or shall have any direct or indirect financial
interest in this Agreement nor shall Consultant enter into any
agreement of any kind with any such officer or employee during the
term of this Agreement and for one year thereafter. Consultant
warrarits that Consultant has not paid or given, and will not pay or
give, any third party any money or other consideration in exchange
for obtaining this Agreement.
16.3 Covenant Against Discrimination. In. connection with its
performance under this Agreement, Contractor shall not discriminate
against any employee or applicant for employment because of actual
or perceived race, religion; color; sex, age, marital status, ancestry,
national origin (i.e., place of origin, immigration status, cultural or
linguistic characteristics, or ethnicity), sexual orientation, gender
identity, gender expression, physical or mental disability, or medical
condition (each a "prohibited basis"). Contractor shall ensure that
applicants are employed, and that employees are treated during-their
employment, without regard to any prohibited basis. As a condition
precedent to City's lawful capacity to enter this Agreement, and in
executing this Agreement, Contractor certifies that its actions and
omissions hereunder shall not incorporate any discrimination arising
from or related to any prohibited basis in any Contractor activity,.
including but not limited to the following: employment, upgrading,
demotion or transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and
selection for training, including apprenticeship; and further, that
Contractor is in full compliance with the provisions of Palm Springs
Municipal Code Section 7.09.040, including without limitation the
provision of benefits, relating to non-discrimination in City
contracting.
17. 'Notice. Any notice, demand, request, consent, approval, or
communication that either party desires, or is required to give to the other party or any
other.person shall be in writing and either served personally or sent by pre-paid, first-
class mail to the ,address set forth below. Notice shall be deemed communicated
seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
Either party may change'its address by notifying the ,other party of the change of
address in writing.
TO CONSULTANT: TO CITY:
Beth B. Finestone, Managing Director City of Palm Springs
MAI, AI-GRS, FRICS, CRE Office of the City Manager
Integra Realty Resources — Los Angeles David H. Ready, City Manager
16030 Ventura Blvd. #620 3200 E Tahquitz Canyon Way
Encino, CA 91436 Palm Springs, CA 92262
Phone: (818) 290-5455 Phone: (760) 323-8380
SIGNATURES ON THE FOLLOWING PAGE
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
dates stated below.
"CITY"
CITY OF P M NGS
Date: By:
ML
City Manager
d� l
APPROVED AS TO FORM: ,JJ ATTEST:
B . L3 l> By:
e'r S. Balli er, Jr thony J Meji , MMC
City Attorney, City Clerk
INTEGRA REALTY RESOURCES —
LOS ANGELES
Date: June 20, 2019 By:
Signature
Beth B. Finestone, MAI, AI-GRS, FRICS, CRE
Managing Director
Printed Name/Title
Date: June 20, 2019 By: 52,1
'Signature
John G. Ellis, MAI, FRICS, CRE
v Senior Managing Director
APPROVED BY CITY MMIACER Printed Name/Title
Ag52� ��s�o
EXHIBIT "A"
SCOPE OF SERVICES AND COMPENSATION
Integra Realty Resources 16030 Ventura Boulevard T 818:2905400
LOS A:4e'os Suite 620 r 818.290,5401
Encino,CA 91436 4473 MmArr.com
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June 17,2019
Mr.Jim R. Karpiak
Executive Director
Coachella Valley Mountains Conservancy
73-710 Fred Waring Drive,Suite 112
Palm Desert,California 92260
SUBJECT: Proposal to provide real estate appraisal services
Vacant Land
Palm Springs,California 92264
APNs:513-460-001,-003,-010, and-033
Sent via E-mail
Dear Mr. Karpiak:
In response to your recent request for proposal,this writing expresses our interest and
availability for the completion of appraisal services concerning the property referenced
above. The property, zoned O and WRl,which is the subject of this proposal includes
114.37±acres of vacant land located on the west side of South Palm Canyon Drive at Bogert
Trail,within the southern region of the City of Palm Springs (City).
We understand the City of Palm Springs and the Coachella Valley Mountains Conservancy
(CVMC)would like tojointly commission an appraisal of the subject property for the
purpose of acquiring the property through a negotiated sale. We further understand that
the appraisal will be used to aid in determining the appropriate purchase price for the
property and will also be used to aid in qualifying for certain state and/or federal grant
funds for the acquisition..
Scope of Services
Upon receiving authorization to proceed, we would notify the property owner of our intent
to appraise the property and invite them to be present at the time of our inspection. We
would complete a thorough inspection of the subject property and review available
information about its history. We would conduct an independent investigation of market
Mr.Jim R.Karpiak
June 17,2019
Page 2
factors,including investigations into comparable land sale properties that would be relevant
In the valuation process. We would analyze this data and develop an opinion of the market
value of the subject property based upon its highest and best use. Upon completion of our
analysis,we would prepare an appraisal report in full compliance with the Uniform Standards
of Professional Appraisal Practice (USPAP) and with the Uniform Appraisal Standards for
Federal land Acquisitions(UASFLA)which is often referred to as"Yellow Book". Where USPAP
and UASFLA are in contradiction, we will rely on UASFLA as the primary standard. We
understand that our appraisal report will be subject to review and approval by the California
Department of General Services.
References
In the past five years, the firm has performed valuation services on more than 1,500 parcels
of vacant land in Southern California. These appraisals have involved both rural and urban
land.
Beth Finestone has in excess of 30 years of experience appraising land in Southern California.
This land has consisted of open space, wetlands, mitigation, low density residential,
agricultural and ranch land,as well as urban land use. Relevant references for Ms.Finestone
are summarized as follows:
Paolo Perrone Richard A.Murphy,MAI
Project Manager Review Appraiser
The Trust for the Public Land U.S.Department of the Interior-
135 West Green Street,2nd Floor Office of Valuation Services(OVS)
Pasadena,CA 91105 650 Capital Mall, Room 2-100
(323)223.0441 Sacramento,CA 95814
paolo.oerroneCattol.ore (916)930-3872
richard murahv@ios.doL¢ov
Matthew Keefe Paul Edelman
Manager—Appraisals and Appraisals Review Deputy Director
Department of General Services Real Estate National Resources and Planning
Division Santa Monica Mountains Conservancy-
707 Third Street,S'h Floor City of Los Angeles
Sacramento,CA 95605 5750 Ramirez Canyon Road
(916)375-4010 Malibu,CA 90265
matt.ke.efeCddes.ca.eov (310)589-3200
edelman@smmc.ca.¢ov
Fee and Timing
For our services as described above, our fee for the completion of an appraisal report is
proposed at$15,000. We propose to have our report completed within eight (8)weeks of
receiving notice to proceed.
Irr
Mr.Jim R.Karpiak
June 17,2019
Page 3
Information to Be Provided by Client
Attached to this letter you will find Exhibit B,which is a list of information that would be useful
and/or necessary for us in the completion of our appraisal services on your behalf. In
completing this proposal.at the above-referenced fee and timing,we have assumed that the
information identified on Exhibit B will be made available to us at the onset of our assignment.
In the absence.of receiving some of these referenced!items, it may be necessary for us to
include limitations and/or special assumptions within the appraisal report, or to spend
additional time(at additional cost)to identify and gatherthis information from othersources.
If you believe any of the items identified on Exhibit B will not be available to us during the
course of our appraisal, please notify us immediately so we may discuss the situation and
address it to your satisfaction.
Supplemental Services
Additional services requested for.consultation, special studies, negotiations, preparation of
or appearance for testimony, and similar services will be provided upon request and will be
billed additionally at the hourly rates set forth as Exhibit A to this proposal. Fees will be billed
monthly.based on the work actually completed.
General Issues
Payment for the completion of reports will be due upon their completion. To the extent that
supplemental services are requested, these will be billed on a monthly.basis. For these
services,if provided, an advance retainer may be requested. For these services,if provided,
payment is due within 30 days of the invoice date. Fees unpaid after 30 days are subject to a
finance charge equal to 1. t per month on all unpaid.balances.
If any party otherthan yourself will be responsible for payment,that party must also sign this
proposal to acknowledge our agreement and this authorization to proceed.
This proposal Is valid for 14 days.'
Our appraisal analysis will incorporate the Assumptions and Limiting Conditions which are
attached to this proposal. To the extent that we prepare a written appraisal report, these
Assumptions and Limiting Conditions (or a set which Is effectively equivalent) will be
incorporated into the appraisal report.
Fees quoted herein are for the provision of professional services and are not in any way
contingent upon the valuation reported or the outcome of any-pending matter for which
valuation is required. In the event of any controversy,claim,or dispute between us related
to this agreement,or the breach thereof,enforcement of this agreement will be governed by
and construed in accordance with the laws of the State of California. The venue.for any action
to enforce or interpret this agreement shall be in the County of Los Angeles, State of
California.
Damages(if any)for which the appraiser and/or appraisal firm would be liable will be limited
to the amount of compensation paid as the fee for providing services.
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Mr-Jim R.Karpiak
June 17,2019
Page A
If this proposal meets with your approval;our receipt of a signed copy of this letter will serve
as our notice to proceed.
Thank you for the opportunity of submitting this proposal. If you have any questions or
comments about it, please call me.
Sincerely,
Integra Realty Resources—Los Angeles
Beth B. Finestone,MAI,AI-GRS, FRICS,CRE
Managing Director
BBF/kt
Enclosures: Exhibit A{Hourly Rates)
Exhibit B(Information Requested from Client)
Exhibit C(Assumptions and Limiting Conditions)
Professional Qualifications of Beth B. Finestone,MAI,AI-GRS, FRICS,CRE
AGREED&ACCEPTED THIS DAY OF 2019
BY:
NAME(PRINT) AUTHORIZED SIGNATURE
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Exhibit A
Schedule of Hourly Rates
John G. Ellis,MAI,CRE, FRICS: $400 per hour for appraisal and consulting
(Senior Managing Director) $500 per hour for trial preparation and expert testimony
Beth B.Firestone,MAI,AI-GRS,FRICS,CRE: $375'per hour for appraisal and consulting
(Managing Director) $450 per hour for trial preparation and expert testimony
Robert M. Lea, MAI $400 per hour for appraisal and consulting
(Director) $500 per hour for trial preparation and expert testimony
Adam M. Bogorad,MAI: $335 per hour for appraisal and consulting
(Senior Director) $400 per hour for trial preparation and expert testimony
Other Directors/Senior Consultants: $240 to$275 per hour
Senior Analysts: $200 to$27O per hour
c
Analysts: $145 to$190 per hour
Researchers: $120 to$140 per hour
Administrative Staff: $9S per hour
(For supplemental
documentation requests)
Effective for the six-month period starting April 1, 2019
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x itB
Information Requested for the Appraisal of
Vacant Land,Palm Springs, Lalifomia 92264
The following items are requested to assist in our efforts at completing the appraisal according to the
terms set forth in our proposal:
1. Reports addressing the environmental status of the property and the presence or absence of any
known adverse environmental conditions.
2. The most recent title policy or report.
3. Information concerning the acquisition history of the subject property, including details for any
purchase of the property within the last 10 years.
4. Information concerning any efforts to sell the property within the last five years.
5. Information concerning any offers to purchase the property within the last five years.
6. Name and telephone number of contact to obtain access to the subject.
7. Any other information you would like us to consider or think would be helpful.
1"..
Exhibit C
Assumptions and Limiting Conditions
This appraisal is based on the following assumptions,except as otherwise noted in the report.
1. The title is marketable and free and clear of all liens,encumbrances,encroachments,easements and restrictions. The
property Is under responsible ownership and competent management and is available for its highest and best use.
2. There are no existing judgments or pending or threatened litigation that could affect the value of the property.
3. There are no hidden or undisclosed conditions of the land or ofthe improvements that would render the property more
or less valuable. Furthermore,there is no asbestos in the property.
4. The property is in compliance with all applicable building,environmental,zoning,and other federal,state and local
laws,regulations and codes.
S. The information furnished by others is believed to be reliable,but no warranty is given for its accuracy.
This appraisal is subject to the following limiting conditions,except as otherwise noted in the report.
1. The conclusions stated in our appraisal apply only as of the effective date of the appraisal,and no representation is
made as to the effect of subsequent events.
2. No changes in any federal,state or local laws,regulations or codes(including,without limitation,the Internal Revenue
Code)are anticipated.
3. No environmental impact studies were eltherrequested or made in conjunction with this appraisal,and we reserve the
right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any
environmental Impact statement is required by law,the appraisal assumes that such statement will be favorable and
will be approved by the appropriate regulatory bodies.
4. Unless otherwise agreed to in writing,we are not required to give testimony,respond to any subpoena or attend any
court,governmental or other hearing with reference to the property without compensation relative to such additional
employment. '
5. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or
survey of the property Included in this report is for illustrative purposes only and should not be considered to be scaled
accurately for size. The appraisal covers the property as described In this report,and the areas and dimensions set
forth are assumed to be correct.
6. No opinion is expressed as to the value of subsurface all,gas or mineral rights,if any,and we have assumed that the
property is not subject to surface entry for the exploration or removal of such materials,unless otherwise noted in our
appraisal.
7., We accept no responsibility for considerations requiring expertise in other fields. Such considerations Include,but are
not limited to,legal descriptions and other legal matters such as legal title,geologic considerations,such as soils and
seismic stability,and civil,mechanical,electrical,structural and other engineering and environmental matters.
8. The distribution of the total valuation in the report between land and Improvements applies only under the reported
highest and best use of the property, The allocations of value for land and Improvements must not be used In.
conjunction with any other appraisal and are Invalid If so used. The appraisal report shall be considered only in its
entirety. No part of the appraisal report shall be utilized separately or out of context.
9. Except as provided in the Agreement,neither all nor any part of the contents of this report(especially any conclusions
as to value,the Identity of the appraisers,or any reference to the Appraisal Institute)shall be disseminated through
advertising media, public relations media, news media or any other means of communication (including without
limitation prospectuses, private offering memoranda and other offering material provided to prospective Investors)
without the prior written consent of the person signing the report.
10. Any Income and expense estimates contained in the appraisal report are used only for the purpose of estimating value
and do not constitute predictions of future operating results.
11. If the property is subject to one or more leases,any estimate of residual value contained in the appraisal may be
particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the
appraised property at the time these leases expire or otherwise terminate.
12. No consideration has been given to personal property located on the premises or to the cost of moving or relocating
such personal property;only the real property has been considered.
13. The current purchasing power of the dollar is the basis for the value stated in our appraisal;we have assumed that no
extreme Fluctuations in economic cycles will occur.
14. The value found herein is subject to these and to any other assumptions or conditions set forth in the body of this
report but which may have been omitted from this list of Assumptions and Limiting Conditions.
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Assumptions and Limiting Conditions Page 2
neenalyses-containeo in trierepo necessarily incorporate-numerous e§tFm-ate-s-afO-a-ss-u-m--pTro-nrreg—ardiFTproperty
performance,general and local business and economic conditions,the absence of material changes in the competitive
environment and other matters. Some estimates or assumptions, however, Inevitably will not materialize, and
unanticipated events and circumstancesmayoccur,therefore,actual results achieved during the period covered by our
analysis will vary from our estimates,and the variations may be material.
16, The Americans with Disabilities Act(ADA)became effective January 26,1992. We have not made a specific survey or
analysis of any property to determine whether the physical aspects of the improvements meet the ADA accessibility
guidelines. In as much as compliance matches each owner's financial ability with the cost to cure the non-conforming
physical characteristics of a property,we cannot comment on compliance to ADA. Given that compliance can change
with each owner's financial ability to cure non-accessibility, the value of the subject does not consider possible
noncompliance. A specific study of both the owner's financial ability and the cost to cure any deficiencies would be
needed for the Department of Justice to determine compliance.
17. Except as provided In the Agreement, the appraisal report is prepared for the exclusive benefit of the Client, its
,subsidiaries and/or affiliates. Except as provided in the Agreement,it may not be used or relied upon by any other
party. Except as provided in the Agreement,all parties who use or rely upon any information in the report without our
written consent do so at their own risk.
18. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property
or in the improvements,and our valuation is predicated upon the assumption that the subject property is free and clear
of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No
representations or warranties are made regarding the environmental condition of the subject property and the person
signing the report shall not be responsible for any such environmental conditions that do exist or for any engineering
or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of
environmental conditions,the appraisal report cannot be considered as an environmental assessment of the subject
property.
19. The person signing the report may have reviewed available Flood maps and may have noted in the appraisal report
whether the subject property Is located In an identified Special Flood Hazard Area. We are not qualified to detect such
areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may
affect the value of the property,and the value conclusion is predicated on the assumption that wetlands are non-
existent or minimal.
20. Integra is not a building or environmental Inspector. Integra does not guarantee that the subject property Is free of
defects or environmental problems. Mold may be present in the subject property and a professional inspection is
recommended.
21. The appraisal report and value conclusion for an appraisal assumes the satisfactory completion of construction,repairs
or alterations in a workmanlike manner.
22. Integra Realty Resources-Los Angeles,an independently owned and operated company shall prepare the appraisal for
the specific purpose so stated elsewhere in this proposal. The intended use of the appraisal is stated in the General
Information section of the report. Except as provided In the Agreement,the use of the appraisal report by anyone
other than the Client is prohibited. Accordingly, except as provided in the Agreement,the appraisal report will be
addressed to and shall be solely for the Client's use and benefit.
23. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future
occurrences. These estimates are based partly on property information,data obtained in public record,Interviews,
existing trends,buyer-seller decision criteria In the current market,and research conducted by third parties,and such
data are not always completely reliable. Integra Realty Resources, Inc,and the undersigned are not responsible for
these and other future occurrences that could not have reasonably been foreseen on the effective date of this
assignment. Furthermore, it is Inevitable that some assumptions will not materialize and that unanticipated events
may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based
on current market conditions,we do not represent that these estimates will actually be achieved;as they are subject
to considerable risk and uncertainty. Moreover,we assume competent and effective management and marketing for
the duration of the projected holding period of this property.
24. All prospective value estimates presented in this report are estimates and forecasts which are prospective in nature
and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph,
several events may occur that could substantially alter the outcome of our estimates such as,but not limited to changes
in the economy,Interest rates,and capitalization rates,behavior of consumers,investors and lenders,fire and other
physical destruction, changes in title or conveyances.of easements and deed restrictions, etc. It Is assumed that
conditions reasonably foreseeable at the present time are consistent or similar with the future.
As will be determined during the course of the assignment,additional assumptions may be required In order to complete the
assignment,which additional assumptions shall be reasonably satisfactory to Client and shall be stated in full In the report. The
appraisal shall also be subject to those assumptions.
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Beth B. Finestone iVIAI Ai-GR5 FRICS CRE Integra Realty Resources
Y 1 l l Ins Angeles
Experience Suite
Ventura Boulevard
Suhe 620
Ms.Finestone,Managing Director for and a principal of INTEGRA REALTY RESOURCES—LOS ANGELES, Encino,CA 91436.4473
has been with the firm since 2004 and has been appraising in Southern California since 2981.She has
specialized in valuation and consulting services related to public agency clients and for major, T818.290.5400
investment-grade commercial properties, e.g.,office, industrial,retail, multifamily, land,and special F 81&290.5401
purpose properties,for over 35 years. Ms.Finestone has also been very active is the appraisal of land,
both entitled and unentitled. She has been Involved in the appraisal of open space land, land for www.irr.com/losangeles
mitigation purposes and valuing various types of land for conservation easement purposes.
Ms.Finestone is president for the Southern California Chapter of the Appraisal Institute(SCCAI),the
largest Appraisal Institute chapter in the United States.She also holds the AI-GRS designation of the
Appraisal Institute.In addition,she is a fellow of the RIGS(past board member)and is also a member
of the CRE and of the IRWA.She has been honored locally for her professional accomplishments. In
May 2009, she was a Los Angeles Business Journal nominee for Executive of the Year —Women
Making a Difference. In October 20D6 Ms. Finestone was honored as one of Real Estate Southern
California's 2006 Women of Influence for contributions to commercial real estate and devotion to
community enrichment.
Ms.Finestone previously held senior positions with Finestone&Associates and Cushman&Wakefield
of California. At Finestone & Associates from 1996 through 2003, she specialized in real estate
appraisal,valuation and consulting services with focus on preparation of appraisals for industrial,
commercial, and special purpose properties.This focus included consultation services,due diligence
work,litigation support,and expert witness designation.
At Cushman&Wakefield of California, Inc. from 1983 through 1996, Ms. Finestone was In the Los
Angeles Appraisal Services Group,specializing In real estate valuation and consulting. By the end of
her tenure, she was responsible for the management the Los Angeles Valuation Advisory"Services
Group,including preparation and review of appraisal reports,business development,consulting and
litigation work, management and coordination of multi-property assignments and national accounts,
professional staff development,and support staff supervision.
Ms. Finestone's clients Include public agencies, right-of-way firms,lenders, institutional Investors,
major corporations,law firms,and Individual property owners. Her services include a wide range of
specialized studies including ground lease rent studies,partial interest acquisitions,value diminution
(from both Internal and external Influences), market demand; feasibility, severance damages and
project benefits, investment analysis, assessment allocation, reuse analysis, and the valuation of
partial interests including leasehold,leased fee,possessory interests,and minority interests.
Ms. Finestone has significant experience in coordinating and managing multiproperty assignments.
She has been active in acquisition appraisals for SCE In Los Angeles, Tulare,: Fresno, Kern, San
Bernardino,and Riverside counties;Riverside County Transportation Commission(ROTC)as part of the
expansion of the.SR-91freeway In Corona; the Orange County Transportation Authority (OCTA) as
part of the 1.405 expansion and the 1.5 expansion, San Bernardino County Associated Governments
(SANBAG);City of Bellflower;City of Ontario;City of Inglewood;the California Department of General
Services; the U.S. General Services Administration; and.the-California Highspeed Rail Authority
(CHSRA).
She recently completed the appraisal of approximately 51 parcels of land owned by Union Pacific
Railroad as part of the high-speed train(HST)project.These included the valuation of corridor land,
surplus land,overcrossings,undercrossings,and miscellaneous utility easements.She also completed
the appraisal of 54 large parcels involving agricultural and ranch uses as a part of the HST project.She
has been active in valuing mitigation land as part of the HST project,including land banks and open
space. Ms. Finestone completed the appraisal of approximately 20 flowage easements for the State
Department of Water Resources as part of the Cantua Creek Improvement Project.In December 2016
Ms. Finestone completed the appraisal of approximately 35 miles of pipeline easements for the
purpose of resetting rent.
Ms.Finestone has aided the Los Angeles County Metropolitan Transportation Authority(LACMTA)in
reviewing appraisals related to the proposed Crenshaw/LAX Transit Corridor Project. She has
significant experience in working with school districts for both acquisition assignments and disposition Ll
of surplus sites.Ms.Finestone has an on-call appraisal contract with the City of Ontario and prepares
bftnestone@irr.com—818.290.5455
Beth B. Finestone MAl AI-GRS FRICS CRE Inc gr Reaslty Resources
Los Ange
and reviews appraisals related to their Quiet Home Program.These reports and.reviews are done to 16030 Ventura Boulevard
FAA guidelines.She also has on-call appraisal contracts with the County of Los Angeles,,the California Suite 620
State University Office of the Chancellor,the Los Angeles Community College District,the Los Angeles Encino,CA 91436-4473
Unified School District,the Community Development Commission of the County of Los Angeles, the
Housing Authority of the County of Los Angeles,the City of Irvine,the Riverside County Transportation T 818.290.5400
Commission(RCTC),and the Orange County Transportation Authority(OCTA).She has reviewed large F 818.290.5401
numbers of appraisals for the OCTA,Los Angeles Unified School District,and the City of Ontario.She
also oversees the administration of the office and works with and mentors junior members of the www.irr.com/losangeles
staff.
Her assignments have included a wide variety of property types,Including:
Agricultural Land Industrial Land Religious facilities
Apartment complexes Industrial manufacturing Residential Land
Auto service/gas stations Mixed retail/residential Restaurants
Camps and schools Mitigation and open space land 5hoppingcenters
Cold-storage facilities Mobile home parks Single-family residences
Commercial land Office buildings Special purpose properties
Condominiums Pipeline easements Subdivisions
Healthcare properties Produce marts Theaters
Hotel/motel properties Rail and transportation corridors Warehouse/distribution
Wind farms
Professional Activities
Member: Appraisal Institute(MAI No.7973)
Designation: Appraisal:Institute—General Review Specialist(AI-GRS)
Fellow: Royal Institution of Chartered Surveyors(FRICS No.1259538)
Member: The Counselors of Real Estate(CRE No.13807)
Member: International Right of Way Association
License: California State Certified General Real Estate Appraiser No.AGO04030
Recognition
Los Angeles Business Journal 2009 Nominee for Executive of the Year - Women Making a
Difference,May 2009
• Designated one of-Real Estate Southern California's 2006 Women of Influence,October 2006
Seminar Presentations
• Corridors,Crops&Condemnation(IRWA National Conference in San Diego,June 2015)
• Eminent Domain Appraisals:Pitfalls&Value-Added Services(RIGS—Southern California Chapter,
CPD Presentation,April 16,2015)
Government Buildings(Appraisal Institute,Special Purposes Seminar,July 25,2014)
• The Trouble with Ignoring Building Code Violators (SCCAI 43'd Annual Litigation Seminar,
Moderator,November 15,2613)
Conflicting Mandates & Instructions Between USPAP, Yellow Book, & Caltrons Appraisal
Guidelines(IRWA Annual Valuation Seminar,April 24,2012)
• Current Issues In Real Estate Appraisal(Lorman Education Services,live audio conference,March
8,2012)
• The Role of the Appraiser In Construction Defect Litigation: Measuring Damages from
Construction Defects (MOLE-approved presentation, January 11, 2012, March 4, 2010, and
February 10,2010)
Expert Testimony
Ms.Firestone has qualified as an expert witness In real estate matters and has testified before:
• Superior Courts:Los Angeles and Orange Counties
• Arbitration Hearings:.Los Angeles County
• Tax Appeal Boards:Los Angeles and San Diego Counties Llurr-
bfinestone@irccom—818.29M455
Integra
Beth B. Finestone, MAI, AI-GRS, FRICS, CRE Los Angeleslry Resources
Education 16030 Ventura Boulevard
Suite 620
M.B.A.,Pepperdine University
Encino,CA 91436-0473
B.S.,Rinesiology,University of California,Los Angeles
Ms.Firestone Is currently certified by the Appraisal Institute's program of continuing education for Its T818.290.5400
designated members. She successfully completed the following courses and other requirements of F 818.290.5401
the MAI designation through the Appraisal Institute and American Institute of Real Estate Appraisers:
• Real Estate Appraisal Principles(2004) wwwArr.com/losangeles
• Basic Valuation Procedures(2004)
• Capitalization Theory and Techniques,Parts 1,11.111
• Case Studies in Real Estate Valuation
• Report Writing and Valuation Analysis
• Real Estate Investment Analysis
• Income Property Demonstration Report
• The Sales Comparison Approach
• Standards of Professional Practice(2007)
• Federal&State Laws and Regulations(2004)
• Real Estate Finance(2004)
• Comprehensive Examination
She has attended the following courses,seminars,and workshops:
• 261h Annual LA/OC Market Trends Seminar(Appraisal Institute,2019)
• Uniform Appraisal Standards for Federal Land Acquisitions: Practical Applications (Appraisal
Institute,2017)
• Uniform Appraisal Standards for Federal Land Acquisitions: Practical Applications (Appraisal
Institute,2017) '
• CRE Midyear Meetings(Counselors of Real Estate,2017)
• LDAC 2017:What to Expect&Legislative Briefing(Appraisal Institute,2017)
• The Changing Electric Power Grid...and What It Means to You(IRWA/Appraisal Institute,2017)
• 2017 Eminent Domain Seminar.(Nossaman U.P.2017)
• Santa Barbara/Ventura County 2017 Market Trends Seminar(Appraisal Institute,2017)
• Yellow Book Changes-Overview for Appraisers(Appraisal Institute,2017)
• Global Cities in an Era of Change-2016-Stanford Symposium(CRE/RICS,2016)
• Professional Appraisal Practice-Lessons from the Field(Appraisal Institute,20151
• Solar Photo-Voltaic-A technology that has come of age(Appraisal Institute,2015)
• Review Theory-General(Appraisal Institute,2015)
• Annual L.A./Orange County Market Trends Seminar(Appraisal Institute,2015,2013)
• 7-Hour National USPAP Update Course(Appraisal Institute,2018,2015,2014,2012,2010,2007,
2006,2004)
• Unique Residential & Commercial Property Valuation Issues In Southern California (Appraisal
Institute,2014)
• IRS Valuation Summit(Appraisa(lnstitute,2013,2010)
• Annual Litigation Seminar(Appraisal Institute,2013,2007,2006).
• Federal and California Statutory and Regulatory Law Course(Appraisal Institute,2013)
• Appraising the Appraisal:Appraisal Review-General(Appraisal Institute,2012)
• Annual Valuation Seminar(IRWA,2019,2016,2015,2012)
• Business Practices and Ethics(Appraisal Institute,2017,2612,2007)
• Principles of Real Estate Appraisal(IRWA,2012)
• Jobs and Commercial Real Estate-"It's Not Rocket Science"(Appraisal Institute,2012)
• Appraisal Curriculum Overview(Appraisal Institute,20111
• National IRS Symposium(American Society of Appraisers,2011)
• Annual Summer Conference-Commercial Session(Appraisal Institute,2015,2011,2008)
• Federal Agency Update(Appraisal Institute/IRWA,2010)
• 161hAnnual LA./Orange County.Market Trends Seminar(Appraisal Institute,2009)
• Appraising Income Properties in a Declining Market(Integra Realty Resources,2009)
• Everything AI Has Not Taught You About Litigation Appraisal(Appraisal Institute,2009) , r
• Introduction to Environmental Issues(IRWA,2009) 1■ U a
bflnestone@irr.com-818.290.5455
Beth B. Finestone, MAI, AI-GRS, FRICS, CRE Integra eles Resources
Investment Grade Property Valuation in a Declining Market(Appraisal Institute,2009) 16030 Ventura Boulevard
Litigation Appraising:Specialized Topics and Applications(Appraisal Institute,2009) Suite 620
• Principles of Real Estate Engineering(IRWA,2009) Encino,CA 91436-4473
• Principles of Real Estate Law(IRWA,2009).
Real Property Asset Management(IRWA,2009) T 818.2905400
• The Appraiser's Role in Public Acquisitions(Appraisal Institute,2009) F 818.290,5401
• Valuation Issues in Eminent Domain in the Current Market(Appraisal Institute,2009)
• 53rd Annual International Education Conference,(IRWA,2007) www.irr,com/loonpetes
• ABCs of Easement Valuation'(IRWA,2007)
• After-Effects of Katrina on Appraisal(IRWA,2007)
• Appraisal Special Purpose Properties(Appraisal Institute,2007)
• Eminent Domain Appraisal(IRWA,2007)
• Evaluating Commercial Construction(Appraisal Institute,2007)
• Principles of Real Estate Negotiation(IRWA,2007)
• Statistics Review with Appraisal Applications(Appraisal Institute,2007)
• Direct and Inverse Condemnation(2006)
• Contemporary Approaches to Land Valuation(Appraisal Institute,2005)
• Introducing the Metro Orange Line(Appraisal Institute,2005)
• Real.Estate Outlook(CSUN Center for Real Estate,2005)
• .Southern California Market Trends Seminar(Appraisal Institute,2000)
Representative Appraisal Assignments
• Market rent study related to a ground lease for LACMTA related to property In North Hollywood.
• Highest and best use appraisal of the Federal Building In West Los Angeles(28.2 acres).Included
expanded highest and best use analysis to determine possible.development scenarios to result in
the highest return to the underlying land.
• Appraisal of approximately five acres of1and in the City of Beverly Hills, under three different
scenarios.Assignment completed for the City for use in determining highest and best use of the
site and to aid in lease negotiations with a proposed developer for long-term lease of the site.
• Appraisals of the Concerto high-rise residential complex in downtown Los Angeles, adjacent to
Staples Center,as part of bankruptcy proceedings.The assignment Involved an expanded highest
and best case analysis to analyze the property as condos for sale and as an apartment complex.
• Valuation of a number of high-rise office buildings In downtown Los Angeles,Including the First
Interstate Tower,Broadway Plaza,Southern-California Gas Company Tower,Wells Fargo Tower,
Wells Fargo Center at Bunker Hill,International Tower,R&T Plaza,The Park,and 550 South Hope.
• Appraisal of nine commercial properties In Beverly Hills that were proposed to be impacted by
subway tunnel easements for LACMTA's Purple Line. These involved office and medical office
buildings.
• Appraisal for each of the subject acquisition areas in Fresno County for the State Department of
Water Resources, which Included 22 permanent flowage easements and three partial fee
acquisitions. Some of the proposed flowage easements overlapped existing road and utility
easements which had to be considered.Due to the nature of the flowage easements,substantial
severance damages accrued to the remainder parcels which had to be considered. This
assignment also included the consideration of orchard and crop values.
• As a subcontractor on behalf of the CHSRA since 2015, we have completed appraisals of full
acquisitions and partial acquisitions (with severance and mitigation damage studies) for many
property types Including agricultural,commercial, industrial,residential, railroad corridors, and
other special purpose property appraisals.In total,we completed 95 appraisals(some of which
Involved multiple parcels)thus far.
• Appraisal of 9,800 acres of land in Kern County for use as a wind farm.Jointly retained by the
seller(GE Wind Energy)and the buyer(Los Angeles Department of Water and Power)to act as
the third appraiser to determine the purchase/sale price of the site.
• Appraisal of the Del Mar Fairgrounds, Racetrack, and Horsepark (450 acres of land and over
1,000,000 square feet in Improvements)for the California.Department of General Services.
• Disposition appraisal of the United States Army Reserve Centers in West Los Angeles(Wilshire
Boulevard and Federal Avenue)and Sherman Oaks(Sepulveda Boulevard and Magnolia Avenue). _
These assignments Involved an expanded highest and best use analysis and consideration of e+
bfinestone@lrr.com—818.290.5455
Beth-B. Finestone MA1 Al-GRS FRICS CRE Integra Realty Resources
! 7 ! Los Angeles
possible general plan and zoning changes.The charged political climate associated with the West 16030 Ventura Boulevard
Los Angeles area necessitated a number of interviews with City Council members of surrounding suite 620
districts to aid in determining possible uses for the site that would be supported by senior Encino,CA 9143E-4473
planning officials with the City and County who werealso interviewed.
• Multiple appraisal assignments for5outhern California Edison Company included: T838.290.5400
Central Valley Phase I:Appraisal of 34 existing overhead distribution, transmission line and F 818.290.5401
power pole easements which SCE wanted to update and perfect.These involved residential,
'commercial and agricultural properties.For the agricultural properties,the valuation Included www.irr.composangeles
and analysis of the loss In value from orchard trees being taken.
Central Valley Phase Il:Appraisal of 16 new acquisitions for overhead distribution,transmission
tine and power pole easements. This involved all agricultural properties and included an
analysis of compensation for trees being taken..The project was highly contentious and
significant research related to severance damages was completed. '
• Barstow/Daggett:Appraisal of 44 overhead transmission line and power pole easements which
SCE wanted to update and perfect Involving residential and unimproved agricultural land.
• Victomille:Appraisal of 38 overhead distribution,transmission line and power pole easements
which SCE wanted to update and perfect.These included improved residential and commercial
properties.
• Tehachapi:Appraisal of14 overhead distribution,transmission line and power pole easements
which SCE wanted to update and perfect. These Included residential, commercial and
unimproved agricultural properties.
Corona: Ongoing assignment related to the acquisition of 11 subsurface easements for
underground transmission and distribution lines. These represent the acquisition of new
easements which partially overlap previously existing easements in favor of SCE. All of the
properties Involved are improved with single-family residences.
• 'Appraisals of multiple transportation corridor easements in San Bernardino and Riverside
counties for Overland,Pacific&Cutter,Inc.,including:
Milliken.Avenue Grade Separation Project: Upgrade of the existing Milliken Avenue/Mission
Boulevard/Union Pacific Railroad at-grade crossing within the City of Ontario.
SR-91 Widening Project:Acquisitions and easements for the widening of State Route 91 within
the City of Corona.
• Devote Interchange Improvements Project:Acquisition and easements for the construction of
an improved interchange at1.15 and 1.215 within the City of Devote.
• Appraisal of multiple properties:for the M2 Environmental Mitigation Program for-the OCTA:
• The Aliso Canyon property is a 150.8% acre site perched on a Laguna Beach hillside,
overlooking the Pacific Ocean.The property was appraised for potential acquisition purposes
related to an open-space conservation program.
• The Irvine Mesa Corridor consisted of the appraisal of 20 parcels totaling 669.99t acres In the
Silverado Canyon area of southeastern Orange County.The report was intended to assist with
the acquisition of the land from the owner, the Wildlands Conservancy. This property was
comprised of a number of parcels which we appraised individually as well as in bulk.
• Located just west of the Cleveland National Forest,we appraised the MacPherson Property for
the consideration of acquisition possibilities related to an open-space conservation program.The 202.78t acre site is located north of Silverado Canyon Road,just east of Santiago Canyon.
• The Saddleback Meadows property represents 2223 acres of rugged terrain in the Trabuco
Canyon area of southeastern Orange County. A potential buyer of .the property was
considering an open space conservation use for the site.
The Saddleback Valley Christian Schoolstte consists of 52t acres located in the City of San Juan
Capistrano,just west of Interstate S.
• Review work for OCTA:
1.5 HOV Improvement Project:Ongoing review work of approximately 10 appraisals related to
the widening of the 1.5 HOV.
• Lakeview Grade Separation Project: Review of approximately 28 appraisals, some of which
involved dual appraisal of complexlpart-take assignments.
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irrm
bfinestone@irr.com—818.290.5455