Summary Basis of Just Compensation 2019
Anderson & Brabant 1
SUMMARY OF THE BASIS FOR THE AMOUNT
ESTABLISHED AS JUST COMPENSATION
(Accompanying offer made pursuant to Government Code § 7267.2)
The following is a summary of the basis for the amount that the City of La Quinta established as
just compensation, which amount was derived from an appraisal as approved by the City of La
Quinta. This required summary of conclusions is not intended to be an appraisal report as
defined by the Uniform Standards of Professional Appraisal Practice (USPAP).
BASIC PROPERTY DATA
Owner: A Preliminary Report prepared by Stewart Title of California, dated
November 20, 2018, identifies two parcels, both of which are
portions of Assessor’s Parcel No. 777-490-024. Title to Parcel 1 is
shown to be vested in Charles R. Rubey (1/2 interest) and A. Reed
Rubey and Mary H. Rubey, husband and wife (1/2 interest). Title to
Parcel 2 is shown to be vested in Ross H. Lee and Hazel H. Lee,
husband and wife (1/2 interest); and Ross A. Lee and Loretta M.
Lee, husband and wife (1/2 interest).Starlight MHP, LLC/Davis
Group Exchange, LLC.
Location: West side of Jefferson Street, south of Avenue 52, La Quinta,
California.
Assessor Parcels: 777-490-024
Brief Legal Description: The northerly 130 feet of the southeast quarter of the northeast
quarter of Section 8, Township 6 South, Range 7 East, San
Bernardino Base and Meridian.
Present Use: Canal
Highest and Best Use: Continued use as a canal.
Interests Valued: Fee Interest (encumbered) of the entire parcel.
Date of Valuation: March 29, 2019
Applicable Zoning: The property is a portion of the Coachella Canal and is zoned FP
Floodplain District by the City of La Quinta. The purpose of this
designation is to protect life and property from flood flows and to
establish criteria for land use consistent with state law and the
Federal Emergency Management Agency (FEMA).
The General Plan designation of the property is OS Open Space
District. The stated purpose of this designation is to provide for the
protection and preservation of sensitive environmental areas such as
areas with significant cultural resources, threatened or endangered
plant and wildlife species habitat, scenic resources and significant
topographical constraints.
Anderson & Brabant 2
The property is also identified as part of the public facilities in the
SilverRock Resort Specific Plan, and is designated as W (Water
Course/Flood Control).
Improvements: The Coachella Canal runs through the property in an east/west
direction. At the property, the canal is an open channel. Other
improvements include equipment/facilities relating to the channel
and some chain-link fencing. The Coachella Canal was completed
about 1949 and the improvements are considered to be the property
of the United States, but are being maintained and managed by the
Coachella Valley Water District.
Project Description: The proposed acquisition of the subject property is necessary for
the future extension of SilverRock Way as part of the SilverRock
Resort Specific Plan. SilverRock Way currently extends south
from the signalized intersection with Avenue 52. Eventually, the
street will meander in a southeasterly direction, crossing the
Coachella Canal, and ending at Jefferson Street.
BASIS OF APPRAISAL
Sales Comparison Approach: The Sales Comparison Approach is used to derive a value indication
by comparing the subject property to similar properties that have
sold recently, applying appropriate units of comparison, and making
adjustments to comparables based on the elements of comparison.
The unit of comparison is the price paid per gross acre of land.
Sales of limited-use parcels of land that had little or no development
potential in the Coachella Valley were researched. The focus was on
sales of flood plain parcels of vacant land. Six sales were selected
for the purpose of supporting a value for the subject. The data range
in size from 2.74 acres to 338.59 acres, and closed escrow between
August 2015 and June 2018. The principal transactions relied upon
are shown in the summary of market data (Exhibit “A”).
Based on an analysis of the data and considering the overall legal
and physical attributes of the appraised property, as well as the
definition of value, a unit value of $2,100 for the six acre parcel is
considered reasonable. When applied to the size of the 6.0 acre
parcel, the resulting fair market value, as of March 29, 2019 is as
follows:
$2,100 per acre x 6.0 acres = $12,600
Anderson & Brabant 3
TOTAL JUST COMPENSATION
Fair Market Value of Parcel 777-490-024: $12,600
APPRAISAL FIRM: Anderson & Brabant, Inc.
PREPARED BY: James Brabant, MAI
DATE: April 11, 2019
DEFINITION OF FAIR MARKET VALUE
Fair Market Value is defined, by California law, as follows:
“(a) The fair market value of the property taken is the highest
price on the date of valuation that would be agreed to by a seller,
being willing to sell but under no particular or urgent necessity for
so doing, nor obliged to sell, and a buyer, being ready, willing, and
able to buy but under no particular necessity for so doing, each
dealing with the other with full knowledge of all the uses and
purposes for which the property is reasonably adaptable and
available.
(b) The fair market value of property taken for which there is no
relevant, comparable market is its value on the date of valuation as
determined by any method of valuation that is just and equitable.” 1
DEFINITION OF HIGHEST AND BEST USE
Highest and best use is defined by the 14th Edition of The
Appraisal of Real Estate as “the reasonably probable and legal use
of vacant land or an improved property that is physically possible,
appropriately supported, financially feasible, and that results in the
highest value. The four criteria the highest and best use must meet
are legal permissibility, physical possibility, financial feasibility,
and maximum productivity.”
1 California Code of Civil Procedure, Title 7, Sec. 1263.320 and 1263.330
Anderson & Brabant, Inc.
Photographs of the Subject Property
Looking westerly across Jefferson Street toward the subject property and canal.
Another view looking westerly toward the subject property and canal from Jefferson Street.
Anderson & Brabant, Inc.
Photographs of the Subject Property
Looking southerly along Jefferson Street toward the canal crossing.
Looking southerly toward intersection of Avenue 52 and SilverRock Way.
Anderson & Brabant, Inc.
Photographs of the Subject Property
Looking south along SilverRock Way toward the entrance road to SilverRock Resort.
Anderson & Brabant, Inc.
EXHIBIT “A”
Comp No 1 2 3 4 5 6
Location
East side of
Gene Autry Trail
Palm Springs
East & west of
Gene Autry Trail
Palm Springs
S. of I-10, N. of portion
of Tipton Road that is
parallel to Highway 111,
W. of Whitewater River
Palm Springs
Southeast corner of
15th Ave & West Dr
Desert Hot Springs
West side of
Longvue Rd
Sky Valley
West of Jefferson Street,
south of Fiesta Dr.
La Quinta
APN's 660-290-021
660-290-012; 660-300-
001, 005; 669-460-
007; 669-470-035;
669-490-002
522-080-043 656-060-001 & 002 647-100-011 600-010-019
Map Code 756 J-2
756 F2-3; G2-3;
H2-3; & J3 725 B-4 696 H-7 728 G-6 & H-6 5410 A-2
Sale Date Oct-16 Jun-18 Mar-18 Oct-16 Aug-15 Dec-16
Doc No 479697 262923 85810 441324 381411 542764
Buyer Coachella Valley
Conservation Commission
Coachella Valley
Conservation
Commission
Yoon Oh Hem Tan Lopez
Coachella Valley Water
District
Seller Curci Trust
Stevan Dweck Living
Trust Farm Holdings LP Priel Trust Wakil Tax Collector of Riverside
Land Area (Ac) 3.88 338.59 17.60 28.91 20.00 2.74
Zone OS W & O5 O5 RR R-A-1¼RL
General Plan/Land Use Desert (1 DU/10 Ac) OS-C; OS-D; OS-W Desert (1DU/AC) RR RR RL
Topography Level Level to undulating Level to undulating Level Level Level
Access Paved road frontage Paved road frontage Unpaved road Unpaved roads Unpaved road Unknown
Utilities Electrical power Electricity and water Electrical power Electricity; water in
area Electricity and water Public utilities available in
immediate area
Improvements None None None None None None
Price $15,500 $1,015,000 $75,000 $200,000 $115,000 $11,291
Price/Acre $3,995 $2,998 $4,261 $6,918 $5,750 $4,121
Sale Terms Seller cashed out Seller cashed out Seller cashed out Seller cashed out Seller cashed out Cash
Comments
Within 100-year
floodplain. Acquired for
conservation purposes.
Within 100-year
floodplain. Acquired
for conservation
purposes.
Raw desert land located
in a floodplain just west
of the Whitewater River.
Within 100-year
floodplain. Purchased
for speculation.
Within flood hazard
zone, Riverside County
Flood Control area. Also
within West Deception
Canyon Conservation
Area. Purchased for
speculation.
Adjacent to the Whitewater
River. Tax default sale
purchased by the Coachellla
Valley Water District to
preserve as part of a flood
control channel. Purchase
Price was based on back
taxes owed.
Summary of Market Data