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HomeMy WebLinkAbout00141C - PA2 LEA ASSOCIATES APPRAISER TAHQUITZ ANDREAS PRAIRIE SCHOONER MOBILE HOME PARK PROPERTY LEASE T1�-rl- t f Lea Associates, appraiser for Prairie Schooner Mobile Home Prk, Tahq-Andr PA#2 AGREEWiER'll FOR APPRAISAL SERVICES AGR #141 , 10-3-85 Resolution 361 , 10-2-85 PRAIRIE SCHOOER MOBILE HOME PARK - —XI TAHQUITZ-ANDRFAS REDEVEL0P➢•IENT PROJECT THIS AGREEMENT, entered into this 3rd day of 1985, by and between the COMMUNITY REDEVELOPMENT AGENCY of the City of Palm Springs, California, hereinafter referred to as the "Agency" and Lea Associates, hereinafter referred to as the "Appraiser" . WHEREAS the Agency proposes to acquire certain real property (more particularly described in Article 1 of this Agreement) and desires that the Appraiser furnish the Agency certain services with respect to such property, including an appraisal of such property, and the Appraiser represents that he is fully qualified to perform such services and will furnish such services personally. NOW THEREFORE the Agency and the Appraiser, for the considerations and under the conditions hereinafter set forth, do agree as follows: ARTICLE 1. Property to be Appraised. (Fee Interest) In the State of California, County of Riverside , City of Palm Springs, described as follows: Blocks 7, 8, 111, Section 14, Township 4 South, Range 4 East, San Bernardino Base and Meridian. The parcel , regardless of how described, shall be considered to include all right, title and interest of the owner thereof in or to any adjacent or abutting streets, alleys, or other public rights-of-way. ARTICLE 2. Purpose and Basis of Valuations. 2. 1 Purpose and Significance of Appraisal . The appraisal to be furnished under this Agreement is required by the Agency for its guidance in making fair and impartial determinations of fair market value and the just compensa- tion to be offered to the property owner. The Appraiser shall be guided by those objectives of the Agency when estimating values and when making his investigations and studies and analyzing each property and the evidences of its value. Appraisal reports will be reviewed carefully by the Agency. Accordingly, the text of each appraisal report must cover all matters germane to the required valuation findings and must provide a full explanation of the Appraiser' s reasoning and his analyses of the evidences of value , so that a reviewer will be able to follow the Appraiser' s analyses and understand how he reached his valuation conclusions. 2.2 Appraisal Standards. In malting his appraisals, the Appraiser shall be guided by the Uniform A sisal Standards for Federal Land Acquisitions, issued by the (Federal Interagency Land Acquisition Conference in 1971 and revised in 1972, or any subsequent revisions and subsequently, to the extent that the principles stated therein for Federal acquisitions are consistent with State law. 2. 3 Concept of Value. The Appraiser' s opinion of the fair market value shall be in accordance with the definition and concepts of value and the rules on the admissibility of evidence of value under the eminent domain law of the State. 2.4 Date of Valuation. The Appraiser' s date of valuation shall be December 1, 1985. 2.5 Relocation Assistance and Payments. The Appraiser' s analyses and opinions of property value shall not reflect any consideration of or allowance for the relocation assistance and payments provided under Redevelopment Law. 2.6 Influence of Project on Property Value. In forming his opinion of the fair market value of a property, the Appraiser shall disregard any decrease or increase in the fair market value of the real property to be acquired prior to the date of valuation caused by the public improvement or project for which the property is to be acquired, or by the likelihood that the proper- ty would be acquired for such improvement or project, other than that due to physical deterioration within the reasonable control of the owner. In 9 the case of a partial taking, using the before-and-after method of valuation, the Appraiser' s opinion of the value of the remaining not-to-be acquired portion of the property shall reflect any increase or decrease in value attributable to the project. If the Appraiser believes that full compliance with the foregoing provisions would be contrary to State law, but he has not been so informed by the Agency, he shall notify the Agency of his belief or question as to its applicability and request a ruling on the issue. if recognition or nonrecognition or the manner of considering changes in value caused by the project is a problem, the Appraiser' s report shall cite the ruling followed and its source and shall explain the applicability and effect of the ruling on the Appraiser' s opinion of value. ARTICLE 3. Scope of Appraiser' s Services . The Appraiser agrees to perform the following services; 3. 1 Appraisals. Appraise the parcel comprising part of the real property described in Article 1 of this Agreement and prepare and deliver to the Agency within 60 calendar days after the date of this Agreement, appraisal reports in duplicate conforming to the provisions of this Agreement. 3. 2 Property Inspection. Personally inspect the parcel , including all build- ings, structures, improvements , fixtures, appurtenances, and other elements of value thereon or belonging thereto. The Appraiser shall give the owner an opportunity, by reasonable advance notice in writing or otherwise, to accompany the Appraiser, or to have his designated representative accompany the Appraiser, during his detailed inspection of the property. If an owner of a compensable interest in the property or a representative of such owner does not accompany the Appraiser during such inspection, the Appraiser shall include in his appraisal report a copy of his notification to such owner Of such opportunity to accompany the Appraiser, certified by the Appraiser to have been delivered to such owner personally or by certified or registered mail not less than seven (7) days prior to his inspection of the property. In the process of inspecting the property, the Appraiser shall , to the extent practicable, ascertain the rights of all parties in possession and note for consideration all factual information and comments furnished by the owner or his representative relevant to the appraisal . If the Appraiser' s inspection or investigation discloses a sale of a portion of a parcel by an unrecorded contract of sale or otherwise, the Appraiser shall furnish separate reports for each separately owned portion of the parcel . If another appraiser is also to appraise the same property, the Appraiser may make his inspection with such other appraiser, but must otherwise prepare his appraisal report independently. 3. 3 Valuation Data. Make such investigations, studies, and property inspec- tions as are appropriate to enable the Appraiser to arrive at sound conclusions and to prepare the appraisal reports to be furnished under this Agreement. The Appraiser shall ascertain the most recent sale of each property appraised and any other sales of such property during the last five (5) years preceding the appraisal and shall investigate any recent offer or offers of the owner to sell his property. Such sale or sales of the property appraised and all recent sales of other properties that are sufficiently comparable to the property being appraised to be considered by the Appraiser in forming his opinion of fair market value shall be verified insofar as practical . Each such verification shall include inspecting the property and interviewing the seller, buyer, agent, or other person, who participated in the transaction, to ascertain the consideration paid, the terms and conditions of the sale, any special factors affecting the amount of the sale price , and the actual character and condition of the property at the time of sale. 3.4 Testimony in Judicial Proceedings. Testify as an expert witness in behalf of the Agency in any judicial proceedings involving any property appraised under this Agreement. Such services shall include such reasonable Lime as may be required for 'reinspection of the property, updating the Appraiser' s valuation, participation in pretrial conferences with counsel for the Agency, and testifying in the judicial proceeding. 3. 5 Modification of Delivered Appraisal _Reports. Modify or furnish supple- ments to any appraisal report furnished hereunder, without additional cost to the Agency, if (a) applicable principles of law with respect to the valuation of the property require the modification or supplementing of such appraisal , (b) material omissions, inaccuracies, or defects in the appraisal report are discovered after delivery and acceptance of the report by the Agency, or (c) the Appraiser receives or becomes aware of relevant additional -2- • i appraisal information in existence prior to the date the Appraiser signed the report. If there is a significant delay between the date of valuation and the date of acquisition of any parcel or if the property has been materi- ally altered since the appraisal by a Fire, a revised determination of the boundaries or the interest to be acquired, or other cause, the Appraiser shall , 'if requested by Agency, furnish the Agency a supplementary report updating his valuation and the supporting data and analyses to a current date. The compensation for such updating of an appraisal shall be determined in accordance with Article 6 hereof. 3.6 Retention of Appraisal Records. Retain a copy of each appraisal report and all notes and records germane to the appraisal for three (3) years after delivering the appraisal report to the Agency or until the property is acquired by the Agency or its proposed acquisition of the property is abandoned, which- ever is the later. 3.7 Consultation with Agency. Advise and consult with the Agency and its legal counsel regarding services performed and to be performed by the Appraiser and the real property acquisition aspects of 'the Agency' s plans and programs as related to the properties involved in this Agreement, at such time or times as may be mutually convenient for the parties to this Agreement, without additional charge to the Agency. The Appraiser shall initiate such consulta- tions whenever he is in doubt as to whether an element of property is real or personal property or needs legal advice on any aspect of the appraisals to be furnished under this Agreement. There shall be no charge by any party for such consultations. ARTICLE 4. Contents of Appraisal Reports. The appraisal report or reports to be furnished by the Appraiser to the Agency in accordance with this Agreement shall contain certain information and the Appraiser's conclusions and opinions, together with the data and analyses by which they were derived, as set forth below. A separate report shall be submitted for each ownership as defined in Article 1. However, if the Appraiser is to appraise several parcels in the same general area , he may also prepare and submit a separate overall report and date volume and use it as a data source and reference in the separate appraisal reports on the individual parcels. The appraisal report on each ownership shall consist of a cover sheet as provided in Para- graph 4. 1, followed by a report furnishing the Appraiser's opinions and conclusions and the data and analyses on which they are based. The appraisal report on each parcel shall include the following: 4. 1 Appraisal Summary. A cover sheet headed "Appraisal Report for (name of the Agency) ," which may be a printed form, completed to provide the following: a. Project name. b. Date of the report. c. Parcel number, address of the property, brief identification of the interest in the property appraised, and the name of the owner or owners. d. Date or dates of the Appraiser' s inspection of the property with the owner, owners , or the owner' s designated representative, including the name of each owner or representative of an owner who accompanied the Appraiser during his inspection and the interest held in the property or representative capacity of each such person. Identify any owners of a compensable interest in the property who were not present or represented during the Appraiser' s inspection, including identification of the interest in the property held by each such owner. For each unrepresented owner, include in the narrative portion of the appraisal report the evidence of notification required by Paragraph 3.2 of this Agreement and any further explanation deemed appropriate. e. The Appraiser' s estimate of the fair market value of the property and the fair market value of the same interest in the land, if vacant. f. Any other fact or conclusion from the Appraiser' s report which the Agency requests the Appraiser to include on the summary page. g. The limiting conditions of the appraisal , which may include assump- tions (1) that the title is good and marketable, (2) that no responsibility is assumed by the Appraiser, for legal matters , especially those affecting the title to the property, (3) that the -3- r legal description of the property and the interest therein to be appraised, furnished to the Appraiser by the Agency, is correct, and (4) that no survey of the property has been made. Any other appropriate assumption or limiting condition may be added. h. The certificates of the Appraiser (1) that he personally made a thorough inspection of the property, (2) that, to the best of his knowledge and belief, everything contained in the report is true and no relevant and important fact has been omitted, (3) that neither his employment nor his compensation is contingent on the valuation reported, and (4) that he has no past, present,or prospective interest (including that of real estate agent or broker) in the property, the parties 'involved, or any other interest that would conflict in any way with the services performed or the making of an impartial report. i . A certification that, in the Appraiser's opinion, the fair market value of the property is a certain value amount as of the date of valuation determined in accordance with Paragraph 2.4 of this Agreement. j. The signature of the Appraiser. 4, 2 Ownership. The name and address of the owner of the property and the name and the address, if known., of any other party known or believed to hold a separate compensable interest in the property. For any party listed as holding a separate compensable 'interest in the property, furnish a description of the interest when providing the property delineation in accordance with Paragraph 4.3 hereof. 4. 3 Delineation of Property.. The street address of the property and an accurate legal description of the real property and the interest therein appraised. The property description shall identify all conditions, restric- tions, easements, servitudes , and reservations affecting the title , but not mortgages, special assessment levies, or other- liens securing the payment of indebtedness or claims against the owner. The property delineation shall specifically exclude and describe any separately held interest 'in the real property, which under the definition of "parcel " in Article 1 is to be appraised and acquired either separately or as an appurtenance of another parcel to be acquired. The description shall also specifically exclude all separately held interests which are not to be acquired and will not be affected adversely by the Agency' s project. If there are any separately held interests in a parcel , which are to be acquired with other interests in the same parcel , such as leaseholds, tenant-owned improvements, life estates, easements, and water, gas, oil , or mineral rights, furnish a description of each separate interest comprising part of the property appraised and the name of its owner. 4.4 Off-Record Title Information: Information with respect to outstanding interests or instruments affecting the title, but not of record, such as leases, contracts of sale, and other interests or rights of parties in posses- sion. Such information shall be reported, and if the facts obtainable by inquiry and inspection are sufficiEnt, the Appraiser's report shall be based on such additional title information and so noted in the appraisal report. Otherwise, the Appraiser shall refer the matter to the Agency and defer completion of the appraisal until the question is resolved. 4. 5 Property Data. Description of the property, including information perti- nent to the appraisal with respect to such matters as (a) the environment and location of the property, (b) the zoning and any restrictive covenants , conditions , or servitudes affecting the available use or occupancy of the land, (c) the assessed value of the real property and the current annual real estate tax burden, (d) the use and occupancy of the property at time of appraisal , (e) the public improvements, services, and utilities serving and providing access to the property., (f) the character, topography, dimen- sions, and area of the land, (g) the freedom of the property from or susceptibility to special hazards , (h) the current rental and rental history of the property, if rented, (i ) the estimated annual costs of ownership and for operation and maintenance of the property, and (j) a description of the buildings, structures, fixtures , and other improvements, if any, appurtenant to the land, including relevant information as to type of improvement, designed use, construction materials and finish, equipment, dimensions, floor- area, age, condition, space or room arrangement, functional utility, and any other characteristics or attributes of the improvements germane to the value of the real property. The appraisal report shall contain a sketch showing the -4- 0' shape and dimensions of the land, the location of the principal improvements on the land, the location of any easements in the land, and the abutting streets, alleys, or other public rights-of-way. The report shall also include such exterior and interior photographs , each clearly identified, as are appro- priate as part of the description of the property. 4.n Legal and Title Matters Affecting Value. Report of any official citations or personal observations by the Appraiser of any condition or occupancy of the property in violation of law and any other legal or title matters affecting the available lawful uses or the value of the property. 4. 7 Highest and Best Use. The Appraiser' s opinion as to the highest and best use for the property, The appraisal report shall also include the Appraiser' s opinions as to any variations of such use and any other uses or kinds of use for which the property is reasonably suitable or adaptable. Any differences between the Appraiser' s estimate of highest and best use and the actual use of the property at the time of valuation shall be explained. If the highest and best use is self-evident and not materially different from the actual existing use, a statement to that effect will suffice. How- ever, if the property is unused vacant land or the highest and best use is I ound to differ significantly from the present use, the appraisal report shall contain the analyses by which the Appraiser reached his conclusions as to the highest and best use and as to the relative suitability or adaptability of the property for any other available uses for which the property could reasonably be considered to be suitable or adaptable. The analysis of a potential use shall include consideration of relevant matters , such as the suitability of the location, the environment, and the legal and physical attributes of the property for such use, the estimated cost, if any, of converting the property to such use., and the supply, sale price levels , and relative desirability of other properties that would compete for the same kind of use. Because the Appraiser' s finding as to the highest and best use is a conclusion that the property does not have a higher present value for any other use, the analysis of the property for the future use or uses found to be the highest and best use is part of the process of apprais- ing the property and, therefore, may be included in the valuation analysis furnished in accordance with Paragraph 4.8. 4.8 Property Valuation and Appraisal Analysis. The opinion of the Appraiser as to the fair market value of the property. The appraisal report shall contain a description of the reasoning process used by the Appraiser in reaching his conclusion as to value and all data and analyses needed to explain and support his valuation. The supporting data and analyses furnished in the appraisal report shall include , among other things, the following: a. An analysis of the property, as identified and described in accordance with the preceding paragraphs of this Article 4 , from the point of view of evaluating the effect of its characteristics and attributes on its value for the available use or uses for which the property is best suited. Particular attention shall be given to the character- istics of the property most relevant to its value, such as, in the case of an investment property, the income potential and the expenses of ownership, maintenance, and operation. b. Evaluation of information with respect to previous sales of the property appraised and any recent offers of the owner to sell the property. c. The data and the analyses that constitute the principal basis for the Appraiser's opinion of the fair market value. Information shall be furnished with respe- t to recent sales of other, properties which are considered by the Appraiser to be comparable with , and to provide useful evidence of the value of, the property appraised. The informa- tion furnished with respect to each such comparable property and its sale shall include, among any other pertinent facts, the names of the grantor and grantee, the date of the sale , the sale price, any special terms or conditions or circumstances of the sale that affected the transactiun , and a description of the property and its condition at time of sale in sufficient detail For use in comparing it with the property appraised. The appraisal report shall contain the Appraiser' s analysis of each comparable property and its sale in relation to the property appraised. The Appraiser' s analysis in each case shall reflect consideration of, and appropriate allowances for, the differences in the ,utility, desirability, and productivity of the properties that are pertinent to their relative -5- r value. the appraisal report shall contain a valuation data map showing the location of the property appraised and the comparable properties referred to in the appraisal report. d. A] I other information , analyses, and estimates considered by the Appraiser to be relevant to the estimation of the fair market value of the property. e. If the property appraised is part of a larger parcel in the same ownership or is less than the entire interest of the owner in the property, the appraisal report shall contain the Appraiser' s opinion of just compensation for a taking of such property or interest, using the before-and-after methods of valuation as interpreted under State law unless it is obvious that there would be no damages or benefits to the remaining property or interest of the owner. However, if the part or interest to be taken is such a small part of the whole property that the damages For the taking can be more accurately estimated directly, that method may be used if permitted under State law, without estimating the fair market value of the entire property of the owner. The foregoing opinions of the Appraiser shall be supported in his report by the data and analyses by which he reached his conclusions. The appraisal report shall also contain, for infor- mation purposes only (unless required by State law) , the Appraiser' s estimates of the fair market value of the to-be-acquired part or interest as part of the whole property and the net damages or benefits to the remaining property of the owner. If in the opinion of the Appraiser, acquisition of the part of, or interest in, the property proposed for acquisition would leave the owner with an uneconomic remnant, the Appraiser shall furnish a separate estimate of the fair market value of the entire property and interests of the owner unless informed by the Agency that it does not have authority legally to acquire the remnant. A remainder parcel or interest shall be considered to be an uneconomic remnant if by itself it is not capable of being used economically. f. Such maps, plans, photographs, or other exhibits, as necessary, to explain or illustrate the analyses of the Appraiser. g. The Appraiser' s evaluation of the indications of value deduced from his separate analyses of the various evidences of value and an expla- nation of how he reached his final conclusion as to the fair market value of the property. 4.9 Land Value. The opinion of the Appraiser as to the fair market value of the land, if vacant. The valuation shall be for the same interest in the land as is to be acquired in the real property. The report shall contain information with respect to the available use or uses for which the land would be suitable if vacant, the opinion of the Appraiser as to its highest and best use, and the Appraiser' s analysis of the evidences of value and of the use potential by which he reached his conclusions as to the highest and best use and the land value. 4. 10 Additional Findings in Certain Cases. Additional conclusions, if appli- cable, as follows: a A Parcel-s- ,,Comprised of Independently Marketable Properties. IF he parcel is filar=ketable as two or more separate properties, thhe�­sppraisal report shall , i`n-,.,addition to furnishing the Apprar�'r' s opinion .t% of the fair market`"--value or the entire part-ci identify each separately marketable pr`bl@rty by str� -,-address and the actual or an assumed suitable lega""l•, desc= iption and provide a separate g + C� estimate of the fair market v_a=1 e --f each such separately marketable is property as an ind_epexicdrt p rope rty.``-T.4e appraisal report on the entire parcel ,: =n`such a case may be present-e. as separate reports, one for ea.c'h separately marketable property, wibh�an overall report on all ,,.Tuch properties considered as a single proper Any differ- enc%vtetween the sum of the Appraiser' s opinions of the t�rr� market Va-fue of the separately marketable properties and his opin) n of It fair market value of the entire parcel shall be explained. b. Separately Held Interests. If there are separately held interests in the real property to be acquired , such as easements, leaseholds, air rights, life estates, and oil , gas, or mineral rights, and the division of ownership is not of such character as to destroy the -6- r practical unity of the property, the Appraiser shall apportion his estimate of the fair market value of the property (all interests therein to be acquired) to each separately held interests. ARTICLE 5. Services To Be Provided by Agency. The Agency agrees to furnish the Appraiser the following: 5. 1 Parcel Map. A map, based on official records, of the property described in Article 1 hereof, showing the boundaries and dimensions of the parcels to be appraised. Each parcel shall be designated by a number, and the parcel numbers shown on the Appraiser' s reports shall correspond to the parcel numbers shown on the map, except that additional parcel numbers may be assigned by the Appraiser for easements appraised separately or for additional parcels revealed while making the appraisals . 5. 2 _Ownership Data. An ownership data report for each parcel , which report will show all estates and interests in the parcel as shown of record and consequently shall not be assumed to define the interest to be appraised or any. separation of interests for appraisal purposes required by the defini- tion of "parcel " in Article 1 hereof. The ownership data report on each parcel as shown on the parcel map shall include: a. The name (and, if known or shown of record, the address) of the ostensible owner as it appears of record; b. The legal description of the parcel as shown by the conveyance or conveyances or other instrument by which the record owner acquired title; c. Identification of the conveyance or conveyances, or other instrument by which the present owner acquired title, including: the date thereof; the date, book and page numbers, and place of recordation ; the name (and, if known or shown of record, the address) of the grantor of such conveyance; the stated consideration; the amount of any mortgages or encumbrances placed of record or to which title was subject at time of conveyance (so far as determinable from an examination of such conveyance) ; and the amount of any State or local transfer taxes, based on the amount of the consideration., paid in connection with the transfer of title; d. Outstanding estates and other rights or interests of record, including easements, use restrictions , mineral rights, leases , and any known, but unrecorded, interests of other parties. Sufficient information shall be furnished to disclose the probable effect of such outstanding interests on the title of the record owner; e. Outstanding special assessments, if any, for public improvements such as streets., sidewalks , public utilities , and similar public facilities; f. The amount of real estate tares for the current year and the assessed valuation stated separately for land and for improvements. 5. 3 Legal Advice. Advice, upon request of the Appraiser, on legal matters affecting the appraisal of any property to be appraised. ARTICLE 6. Payment. In consideration of the undertakings and agreements on the part of the Appraiser contained in this Agreement. The Agency agrees to make payments to the Appraiser upon completion by the Appraiser of services to be provided hereunder and the submission to the Agency of properly certified invoices therefor, as follows: 6. 1 For appraisal services and reports furnished by the Appraiser in accord- ance with Paragraph 3. 1 hereof and accepted by the Agency, and for all other services furnished in accordance with Article 3 hereof, except services furnished in connection with judicial proceedings as provided in Paragraph 3.4 hereof, the updating of appraisals as provided in Paragraph 3.5 hereof, and services furnished in connection with reservations or rights in owners as provided in Paragraph 3.6 hereof, an amount not to exceed Four Thousand Seven Hundred and Thirty Six Dollars ($4,736) which shall constitute full payment to the Appraiser for all of said services and for all supplies, materials, and equipment used or furnished by the Appraiser and all expenses incurred by the Appraiser in or in connection with the performance of said services. 6.2 For services furnished by the Appraiser in connection with judicial proceedings as provided in Paragraph 3. 4 hereof, (except services as an expert witness in such a proceeding) , for the updating of appraisals as provided -7- r in Paragraph 3.5 hereof, and for services furnished in connection with reserva- tions of rights in owners as provided in Paragraph 3. 6 hereof, One Hundred Twenty Five Dollars ($125) per hour or fraction thereof actually engaged in performing the services, -including travel time. Any and all expenses of the Appraiser, including travel expense and subsistence, shall be borne by the Appraiser. 6. 3 For services as an expert witness for the Agency in judicial proceedings as provided in Paragraph 3.4 hereof, with respect to any property appraised by the Appraiser pursuant to this Agreement, the Appraiser and the Agency hereby agree that the fair and reasonable compensation for the Appraiser' s services shall be One Thousand Dollars ($1000) for each day's attendance in Court. ARTICLE 7. Representations and Agreements of Appraiser. As an inducement to the execution of this Agreement by the Agency and in consideration of the agreements to be performed by the Agency, the Appraiser represents and agrees that: 7 . 1 Qualifications. The Appraiser is qualified to perform the services to be furnished under this Agreement and is duly authorized or permitted by or under law to perform such services , and all personnel engaged in the work shall be qualified and so authorized or permitted to do the work they perform. Attached hereto as Exhibit B, and hereby made a part of this Agree- ment, is a statement by the Appraiser, certified by him to be true and correct, setting forth his technical qualifications , general appraisal experience, specific experience in appraising properties of the type involved in this Agreement, the courts in which he has testified as an expert witness, and other information pertinent to establishing his technical qualifications. 7. 2 Solicitation or Procurement of Agreement. The Appraiser has not employed any person to solicit or procure this Agreement and has not made, and will not make, any payment or any agreement for the payment of any commission, percentage, brokerage, contingent fee , or other compensation in connection with the procurement of this Agreement. 7 . 3 Interest of Appraiser and Appraiser' s Employees. The Appraiser does not have any interest including that of real estate agent or broker) , direct or indirect, present or prospective, in any property described in Article 1 hereof or in the sale thereof, or any other interest, whether or not in connection with said property, which would conflict in any manner or degree with the performance of the services and the submission of impartial reports, and has not employed and will not employ, in connection with said property, which would conflict in any manner or degree with the performance of the services and the submission of impartial reports, and has not employed and will not employ, in connection with the services to be furnished hereunder, any person having any such interest, and until such property is acquired by the Agency or excluded from its project or projects by resolution of its governing body, the Appraiser and any employees of the Appraiser, so long as they are employed by the Appraiser, will not acquire any such interests and will not, for their own account or for other than the Agency, negotiate for any of said property, perform services in connection with said property, or testify voluntarily as a witness in a condemnation or other proceeding with respect to such property. 7 .4 Services to Be Confidential . All services , including reports, opinions , and information, to be furnished under this Agreement are confidential and shall not be divulged, in whole or in part, to any person , other than to duly authorized representatives of the Agency, without prior written approval of the Agency, except by testimony under oath in a judicial proceeding or as otherwise required by law. the Appraiser shall take all necessary steps to ensure that no member of his staff or organization divulges any information concerning such appraisals or services except as provided above. 7 . 5 Facilities and Personnel . The Appraiser has and will continue to have proper facilities and personnel to perform the services and work agreed to be performed hereunder. If the Appraiser proposes to employ any person or persons to make any appraisals of machinery and equipment or other specialized elements or attributes of a property appraised under this Agreement, the employment of such person or persons for such purpose shall not place the Agency under any obligation to such employee , nor relieve the Appraiser of full responsibility for the faithful performance of the services to be furnished hereunder. 7. 6 Equal Employment Opportunity. During the performance of this Agreement: a. The Appraiser will not discriminate against any employee or applicant for employment because of race , color, religion, sex or natural -8- v origin. The appraiser will take affirmative action to ensure that applicants are employed , and that employees are treated during employ- ment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be 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. The Appraiser agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Agency setting forth the provisions of this non- discrimination clause. b. The Appraiser will , in all solicitations or advertisements for employees placed by or on behalf of the Appraiser, state that all qualified applicants will receive consideration for employment without regard to race, color, religion., sex or national origin. 7.7 Assignment. The Appraiser' s rights, obligations, and duties under this Agreement shall not be assigned in whole or in part, but this shall not pro- hibit the assignment of the proceeds due or to become due hereunder to a bank or financial institution. This Agreement may be assigned by the Agency or any corporation, agency, or instrumentality having authority to accept the assignment. 7.8 Subcontracting. None of the work or services covered by this Agreement shall be subcontracted without the prior approval of the Agency. 7. 9 Records. The Appraiser will maintain records of all details with respect to the services to be performed hereunder, including one complete copy of each report, for three (3) years after delivering such report, or until the property covered by the report is acquired, or its acquisition is abandoned, by the Agency, whichever is later. 7. 10 Affidavits of Compliance. The Appraiser will , if requested by the Agency, furnish the Agency affidavits certifying as to compliance with any or all of the provisions of this Article 7. ARTICLE 8. Changes. The Agency, at any time by written notice to the Appraiser may modify the scope or quantity of the services to be furnished under this Agreement. If such changes cause an increase or decrease in the amount of services to be provided by the Appraiser or in the time required for their performance, equitable adjustment shall be made in the provisions of this Agreement for payments to the Appraiser or for the time for performance of the services or for both, and this Agreement shall be modified by agreement of the parties accordingly. ARTICLE 9. Termination of Agreement for Cause. If, through any cause, the Appraiser shall fail to fulfill in a timely and proper manner his obligations under this Agreement, or if the Appraiser shall violate any of the covenants or agreements thereof, the Agency may upon written notice to the Appraiser terminate the right of the Appraiser to proceed under this Agreement or with such part or parts thereof as to which there has been default, and may hold the Appraiser liable for any damages caused to the Agency by reason of such default and termination. In the event of such termination , any completed reports prepared by the appraiser under this Agreement shall , at the option of the Agency, become its property and the Appraiser shall be entitled to receive equitable compensation for any work completed to the satisfaction of the Agency. The Appraiser, however, shall not thereby be relieved of liability to the Agency for damages sustained by the Agency by reason of any breach of the Agreement by the Appraiser, and the Agency may withhold any payments from the Appraiser for the purpose of setoff until such time as the amount of damages due the Agency from the Appraiser is determined. The Appraiser shall not be held liable for damages under this Article solely for reasons of delay if the delay is due to causes beyond the control and without the fault or negligence of the Appraiser, but this shall not prevent the Agency from terminating this Agreement because of such delay. ARTICLE 10. Interest of Members of Agency. No member of the Agency shall participate in any decision relative to this Agreement affecting, directly or indirectly, his personal interests. No such member and no other officer, agent, or employee of the Agency having any responsibility or function in connection with this Agreement shall have any private interest, direct or indirect, in this Agreement or the proceeds thereof. -9- r ARTICLE 11. Officials Not To Benefit. No Member of or Delegate to the Congress of the United States of America, and no Resident Commissioner, shall be admitted to any share or part of this Agreement or to any benefit to arise from the same. ARTICLE 12. Notices. Any action, notice, or request taken, given , or made by the Agency hereunder may be taken , given , or made by Kenneth E. Feenstra, Redevelopment Director, or such other person or persons as the Agency may, by written notice to the Appraiser, designate for such purpose. All notices given or made to the Appraiser hereunder shall be deemed to be duly and proper- ly given or made if mailed to the address specified below, or delivered personally to the Appraiser. All notices or other papers given or delivered to the Agency hereunder shall be deemed to be sufficiently given or delivered if mailed, postage prepaid, to Kenneth E. Feenstra of the City of Palm Springs , P.O. Box 1786, Palm Springs, California 92263, or to such other representative or address as the Agency may designate to the Appraiser in writing. DATED at Palm Springs, California, this D day of 1985. ATTEST: COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS, CALIFORNIA "� / �---i.� �/J�,/� 9s'sistant Secretary 'Chairma REVIEWED AND APPROVED:���. APPRAys ER: ��Y4.���d i��.sf 4"xp l0`e ft` �A.AyY�i°i19VM G+iQ��11 �+Fyiy/'�^i� �✓!` aI -10- AMENDMENT TO ARTICLES 6 . 2 AND 6.3 It should be understood that these quoted rates are valid for a time period not to exceed one year from the date of this agreement and, subsequent to that date, are subject to revision in accordance with Lea Associates' standard fee schedule for such work in effect at that time.