05 50905 Bermudas - Offer of Just Compensation 09-24-18[^Utufda^CALIFORNIASeptember 24, 201850-905 Bermudas, LLCc/o Gerry Glessing706 K Thanga DriveCorona Del Mar, CA 92625-1734Regarding: La Quinta Village Complete Streets ProjectOffer of Just Compensation and Appraisal Basis of OfferProperty Located at: Northwest corner of Calle Tampicoand Avenida BermudasAssessor Parcel No.: 773-370-003Dear Mr. Glessing:The City of La Quinta, (hereinafter called the "City"), is proposing the construction of the of theLa Quinta Village Complete Streets - A Road Diet Project in the La Quinta Village area of the city (Project).As presently planned, the proposed street improvements will require the purchase of a TemporaryConstruction Easement (TCE) over a portion of your property located at the northwest comer of CalleTampico and Avenida Bermudas in the City of La Quinta. The specific area proposed for the easementis identified in the attached Exhibit "A" and delineated on Exhibit "B" (Property).Therefore, pursuant to Government Code section 7267.2, the City hereby makes a formal offerto purchase a Temporary Construction Easement over a portion of your property identified above, forthe sum of $8,100.00 (Eight Thousand One Hundred and No/100 Dollars), which is segregated as follows:$ 8,100.00$ 0.004 0.00$ 8,100.00Temporary Construction EasementNet Severance DamageSeverance Damage - Cost to CureTotal Offer to Purchase (Rounded)The amount offered is based upon a valuation study performed by the City and is explained inthe enclosed Statement of Just Compensation and Summary Statement. This offer is the full amount theCity believes to be "Just Compensation" and is not less than the approved valuation of its fair marketvalue. The amount of this offer does not include compensation for any relocation benefits you may beentitled to receive. The City is offering these amounts for title to all interests the City seeks to acquire;division of the amount among other parties having any claims of ownership, lienholders, or anypossessory or other interests in the Property will be your responsibility.78495 Calle Tampico I La Ouinta, California 922531760.777.7000 I www.laquintaca.gov
[^UfufCia^CALIFORNIA50-905 Bermudas, LLCSeptember 24, 2018Page 2It is the City's hope that this price is agreeable to you, and that the acquisition can beginimmediately. If so, the City will begin preparation of a Purchase and Sale agreement memorializing theterms of the proposed transfer, the form of which will be subject to approval by the City's City Council.The City Council has already approved the amount of the offer, however.This offer is for conveyance of the TCE described above, excluding any oil, gas, or mineral rightsbelow the depth of 500 feet, and subject to terms and conditions set out below, and assuming that theProperty is free of any environmental contamination or Hazardous Materials, and that it is not the subjectof any ongoing environmental investigation or alleged violations of Environmental Laws.1 Payment willbe made when the title to the Property vests in the City free and clear of all recorded or unrecordedliens, encumbrances, assessments, leases and taxes, except:1 For the purposes of this letter, the term "Environmental Laws" means any and all federal, state, regional and local laws, statutes,ordinances, orders, rules, regulations, guidance documents, judgments, governmental authorizations, or any other requirements ofgovernmental authorities, as may presently exist, or as may be amended or supplemented, or hereafter enacted, relating to the presence,release, generation, use, handling, assessment, investigation, study, monitoring, removal, remediation, cleanup, treatment, storage,transportation or disposal of Hazardous Materials, or the protection of the environment or human, plant or animal health, including, withoutlimitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 , as amended by the Superfund Amendmentsand Reauthorization Act of 1986 (42 U.S.C.A. § 9601), the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et seq.), the ResourceConservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Clean Air Act(42 U.S.C. § 7401 et seg.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seg.), the Oil Pollution Act (33 U.S.C. § 2701 et seg.), theEmergency Planning and Community Right-to-Know Act (42 U.S.C. § 11001 et seg.), the Porter-Cologne Water Quality Control Act (Cal. Wat.Code § 13000 et seq.1. the Toxic Mold Protection Act (Cal. Health & Safety Code § 26100, et seq.), the Safe Drinking Water and ToxicEnforcement Act of 1986 (Cal. Health & Safety Code § 25249.5 gt sea.1. the California Hazardous Waste Control Law (Cal. Health & Safety Code§ 25100 et seg.), the Hazardous Materials Release Response Plans & Inventory Act (Cal. Health & Safety Code § 25500 et seg.), and theCarpenter-Presley-Tanner Hazardous Substances Account Act (California Health and Safety Code, Section 25300 et sea.). As used in this letter,the term "Hazardous Material(s)" includes, without limitation, any hazardous or toxic material, substance, irritant, chemical, or waste, includingwithout limitation (a) any material defined, classified, designated, listed or otherwise considered under any Environmental Law, including,without limitation, as defined in California Health & Safety Code Section 25260, as a "hazardous waste," "hazardous substance," "hazardousmaterial/' "extremely hazardous waste," "acutely hazardous waste," "radioactive waste," "biohazardous waste," "pollutant," "toxic pollutant,""contaminant," "restricted hazardous waste," "infectious waste," "toxic substance," or any other term or expression intended to define, list,regulate or classify substances by reason of properties harmful to health, safety or the indoor or outdoor environment, (b) any material,substance or waste which is toxic, ignitable, corrosive, reactive, explosive, flammable, infectious, radioactive, carcinogenic or mutagenic, andwhich is or becomes regulated by any local governmental authority, any agency of the State of California or any agency of the United StatesGovernment, (c) asbestos, and asbestos containing material, (d) oil, petroleum, petroleum based products and petroleum additives and derivedsubstances, (e) urea formaldehyde foam insulation, (f) polychlorinated biphenyls (PCBs), (g) freon and other chlorofluorocarbons, (h) anydrilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, natural gas orgeothermal resources, (i) mold, fungi, viruses or bacterial matter, and Q) lead-based paint.78495 Calle Tampico I La Ouinta, California 922531760.777.7000 I www.laquintaca.gov
J^QiUfda^CALIFORNIA50-905 Bermudas, LLCSeptember 24, 2018Page 31. Taxes for the year in which the Property is purchased, which shall be cleared and paid inthe manner required by Section 5086 of the Revenue and Taxation Code, if unpaid at thetime escrow for the purchase closes;2. Covenants, conditions, restrictions and reservations of record, that do not interfere withthe City's proposed use of the Property;3. Easements or rights-of-way over the land for public or quasi-public utility or public streetpurposes, if any; and4. Any other interests in the Property or exceptions to title appearing on a preliminary titlereport or litigation guarantee, which are accepted by the City in writing through escrow.The City will pay all usual fees, charges, and costs, which arise out of this escrow.As a condition of this offer, the City reserves all rights and remedies it has or may have againstyou and all persons or entities who may be responsible for any environmental contamination or anyHazardous Materials that may exist or may have existed on or migrating to or from the Property, includingall rights to seek damages or other remedies pursuant to any Environmental Laws.Overland, Pacific & Cutler, LLC. (OPC) has been retained as the City's acquisition consultant andwill answer any questions you have regarding this offer letter and its attachments. You can reach AddielFlores of OPC at 760-776-1238.If for any reason you are not satisfied with this offer of just compensation, and have additionalrelevant information that you would like the City to consider regarding the value of the property proposedto be acquired, it will be happy to do so. We would also welcome speaking with you to clarify any questionsor concerns you may have regarding the scope of the easements proposed to be acquired. If you havesuch information, questions, or concerns, please contact Mr. Cutler at the number above.In addition, you should be aware that in the event negotiations fail to result in agreement, and theCity Council ultimately decides to authorize attempted acquisition of the property through eminent domain,you will have the right to have the amount of just compensation to be paid by the City for the easementand any resulting damages fixed by a court of law. Please be advised that in such event, the terms of thisoffer and the contents of this letter may be excluded from consideration as an offer of settlement, underCalifornia Evidence Code sections 1152, 1154, or other applicable provisions of law.78495 Calle Tampico I La Quinta, California 922531760.777.7000 I www.laquintaca.gov
J^QwwtcjCALIFORNIA50-905 Bermudas, LLCSeptember 24, 2018Page 4In compliance with Government Code section 7267.2, included with this offer letter is an informationpamphlet describing the eminent domain process. This brochure is being provided to you for informationalpurposes only and is not to be construed as legal advice.Frank Sp@va^ekCity Manage?ec: Overland, Pacific & Cutler, LLC.78495 Calle Tampico I la Ouinta, Califoinia 922531760.777.7000 I www.laquintaca.gov
STATEMENT OF JUST COMPENSATIONDate of Offer:Assessor'sParcel:PropertyOwner(s):PropertyLocation:LegalDescription:Public Use forProperty:Date of Value:Estate to beAcquired:Area to beAcquired:Highest andBest Use:September 24, 2018773-370-00350-905 Bermudas, LLC , a California Limited Liability CompanyNorthhwest Corner of Calle Tampico and Avenidg Bermudas, La Quinta,CaliforniaSee Attached Exhibits "A" and "B"Temporary Construction EasementAugust 27,2018Easement2,243 Square Feet of Temporary Construction EasementHighest and Best Use is defined as the reasonably probable and legaluse of land which is legally permissible, physically possible, andfinancially feasible that results in the highest value. Highest and best useanalysis Is used in the appraisal process to identify comparable propertiesand, where applicable, to determine whether the existing improvementsshould be retained, renovated, or demolished. The result of the highestand best use analysis, as improved, is: Commercial Development incompliance with existing zoningPresent Use: Improved Commercial Building, parking lot and landscapingZoning: VC - Village CommercialImprovements: Miscellaneous landscapingPage 5
Summary of the Basis for Just CompensationValue Estimate: Application of the Sales, Income and Cost Comparison Approaches to Value.The Sales Comparison Approach is the preferred method of land valuation when comparable data isavailable. Since the main valuation of the easement is only considering the land value, the IncomeApproach and the Cost Approaches to value were deemed not to be relevant and was not utilized inthis valuation.Sales Comparison ApproachThe sales comparison approach is used to derive a value indication by comparing the property beingappraised to similar properties that have sold recently, applying appropriate units of comparison, andmaking adjustments to the comparables based on the elements of comparison. This is a preferredmethod of valuation when comparable sales data are available. The appraiser identified the saleslisted in Exhibit "C" attached hereto, as being most helpful when estimating the value of the subjectproperty:Sales Approach Analysis:Value of the larger parcel (land value only) in the BeforeCondition pursuant to the Sales Comparison Approach: $2,101,034.00Value of the Easement area pursuant to Sales ComparisonApproach (land value only): (rounded) $ 8,100.00**The calculation of the TCE Is as follows:Type ofTakeTCESquare Feet2,243Property Value/Sf.$18.00Rate*11%Term**22 MonthsTCE ValueS8,100.00* 10% annual rate, plus 1% for real estate taxes'''* Twenty-two-month duration of the project, (the Rate is calculated per annum)*** It is assumed that any improvements within the TCE area will be protected in place or will be replaced in kind bycontractor.In addition, in establishing the amount believed to be just compensation, the City's appraisal assessedwhether or not there were damages and benefits to the remaining property. The basis for thisdetermination is whether or not the remainder had been diminished in value by reason of theacquisition of the easement being acquired and the construction of the improvement in the mannerproposed (severance damage) and, if so, whether the same remainder had been increased in valueby reason of the construction of the improvement in the manner proposed (benefits). If there areno severance damages, then the determination of whether there is a benefit is inapplicable sincebenefits can only be used to offset severance damages under applicable California valuation law.In this instance, severance damages were not found.Based upon the valuation, the amount established as just compensation is as follows:Value of the Property Before the Acquisition (Land Only $2,101,034.00Value of the Partial Acquisition $ 8,100 $8,100.00Value of the Remainder Before the Taking $2,101,034.00Value of the Remainder After the Taking $2,101,034.00Severance Damage $ 0.00Project Benefits $ 0.00Net Severance Damages$ $ 0.00 $ 0.00Cost to Cure $ 0.00Page 6
Value of Improvements i 0.00Total Just Compensation (Rounded) $8,100.00Valuation Conclusion: Fair Market Value ofTCEand Severance Damages $8,100.00Page 7
Important Additional Information Regarding the City's Offer1. In the event this offer is accepted, you are entitled to receive full payment prior to the Citytaking possession of the area being purchased unless you waive such entitlement. You arenot required to pay recording fees, transfer taxes, or the pro-rata portion of real propertytaxes which are atlocable to any period subsequent to the passage of title or possession, asthey affect the subject area only.2. Upon request by you, the City may offer to purchase any uneconomlc "remnant" which is/areowned by you or, if applicable, occupied by you as a tenant and which is/are contiguous tothe land being conveyed. As used herein, "remnant" means a remainder property or portionthereof that will be left in such size, shape, or condition as to be of little market value.3. All buildings, structures and other improvements affixed to the land being proposed to beacquired, which are owned by the seller(s) herein or, if applicable, owned by you as a tenant,are included in what the City is proposing to purchase, unless other disposition of theseimprovements has been made and agreed to.4. The amount of just compensation being offered to you was based on a fair market valueappraisal prepared in accordance with accepted appraisal procedures. FAIR MARKET VALUE,as used in this document, and in the appraisal, is "........the highest price on the date ofvaluation that would be agreed by a seller, being willing to sell but under no particular orurgent necessity for doing so, nor obligated to sell, and a buyer, being ready, willing andable to buy but under no particular necessity for so doing, each dealing with the fullknowledge of all the uses and purposes for which the property is reasonably adaptable andavailable." (Section 1263.320 Code of Civil Procedure). The valuation of your property hasbeen based upon an analysis of the most recent market data for similar uses of the propertiesin the immediate area. The appraiser has given full and careful consideration to the highestand best use for development of the property and to all features Inherent in your propertyaffecting its market value. The amount of this offer:a. Represents the full amount of the valuation of just compensation for the propertyto be purchased;b. It is not less than the approved valuation of the fair market value of the property asimproved;c. Disregards any decrease or increase In the fair market value of the real property tobe acquired prior to the date of valuation caused by the public improvement forwhich the property is to be acquired or by the likelihood that the property would beacquired for such public improvement, other than that due to physical deteriorationwithin the reasonable control of the owner or occupant;d. Does not reflect any consideration of or allowance for any relocation assistance andpayments or other benefits which you may be entitled to receive under applicableState or Federal Law or any agreement with the City.5. The owner of a business conducted on a property to be acquired or conducted on theremaining property which will be affected by the purchase of the required property, may beentitled to compensation for the loss of goodwill. Claims for loss of business goodwill aregoverned by Code of Civil Procedure Section 1263.510, a copy of which is attached.Entitlement to such an award is contingent upon the business owner's ability to prove suchloss In accordance with the provision of Sections 1263.510 and 1263.520 of the Code of CivilProcedure. This offer does not reflect any amount of compensation attributable to any lossof business goodwill. If you would like the City to consider whether goodwill should bePages
evaluated as a part of this offer, it will do so. Such an evaluation will require you to providecertain information to the City, including detailed financial information and tax returns. Suchan evaluation usually also requires an interview with the owner/operator of the business.6. Pursuant to Civil Code of Procedure Section 1263.025, should you elect to obtain anindependent appraisal, the City will reimburse you for the actual reasonable costs up to$5,000 subject to the following conditions:a. You, not the City must order the appraisal. Should you enter into a contract withthe selected appraiser, the City will not be a party to the contract.b. The selected appraiser must be licensed with the Office of Real Estate Appraisers(OREA).c. Appraisal cost reimbursement requests must be made in writing and submitted tothe City within 90 days of the earliest of the following dates: (1) the date theselected appraiser requests payment from you for the appraisal; or (2) the dateupon which you, or someone on your behalf, remits full payment to the selectedappraiser for the appraisal. Copies of the contract (if a contract is made), appraisalreport, and invoice for completed work by the appraiser must be provided to theCity concurrent with submission of the appraisal cost reimbursement request. Thecost must be reasonable and justifiable.7. If you ultimately elect to reject the City's offer for your property, you are entitled to havethe amount of compensation determined by a court of law in accordance with the laws ofthe State of California.8. Because the City's public use for your property is scheduled to begin as soon as the Cityacquires the necessary property interests needed for the proposed project, and within twoyears of the acquisition of the subject property, the City does not offer a leasebackagreement for your property being acquired pursuant to Code of Civil Procedure Section1263.615.Page 9
EXHIBIT "A"LEGAL DESCRIPTIONTEMPORARY CONSTRUCTION EASEMENTAPN 773-370-003 . BERMUDASIN THE CIT/ OF LA QUINTA, COUNTl' OF RIVERSIDE, STATE OF CALIFORNIA,BEING A PORTION OF PARCEL 3 OF PARCEL MAP NO. 29886, AS SHOWN BY MAPON FILE IN BOOK 199, AT PAGES 29 THORUGH 30, OF PARCEL MAPS, OFFICIALRECORDS OF SAID COUNTV, LOCATED IN THE NORTHEAST QUARTER OFSECTION 1, TOWNSHIP 6 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN,MORE PARTICULARLY DESCRIBED AS FOLLOWS:BEGINNING AT THE MOST SOUTHEASTERLY CORNER OF SAID PARCEL 3;THENCE NORTH 89°57'16" WEST, ALONG THE SOUTHERLY LINE OF SAID PARCEL3, A DISTANCE OF 18.15 FEET;THENCE SOUTH 44°19'10" WEST, ALONG THE SOUTHEASTERLY LINE OF SAIDPARCEL 3, A DISTANCE OF 32.41 FEET TO THE BEGINNING OF A NON-TANGENTCURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 1250.00 FEET, A RACIALLINE TO SAID POINT BEARS NORTH 00°01'28" EAST;THENCE WESTERLY ALONG THE ARC OF SAID CURVE AND THE SOUTHERLYLINE OF SAID PARCEL 3, THROUGH A CENTRAL ANGLE OF 06°08'02", AN ARCDISTANCE OF 133,82 FEET, A RACIAL LINE TO SAID POINT BEARS NORTH06°06'34" WEST:THENCE NON-TANGENT TO SAID CURVE NORTH 04°24'19" WEST, A DISTANCE OF5.00 FEET TO THE BEGINNING OF A NON-TANGENT CURVE AND A POINT ON ACURVE PARALLEL WITH AND 5.00 FEET DISTANT FROM THE SOUTHERLY LINEOF PARCEL 3, CONCAVE SOUTHERLY, HAVING A RADIUS OF 1255.00 FEET, ARADIAL LINE TO SAID POINT BEARS NORTH 06006'09" WEST;THENCE EASTERLY ALONG THE ARC OF SAID CURVE PARALLEL WITH THESOUTHERLY LINE OF SAID PARCEL 3, THROUGH A CENTRAL ANGLE OF 06°01'50",AN ARC DISTANCE OF 132.09 FEET, A RACIAL LINE TO SAID POINT BEARS NORTH00°04'19" WEST;THENCE NON-TANGENTTO SAID CURVE NORTH 44"19'10" EAST, PARALLEL WITHAND 5.00 FEET DISTANT FROM THE SOUTHEASTERLY LINE OF SAID PARCEL 3,A DISTANCE OF 31.36 FEET;THENCE NORTH 00°02'13" EAST, PARALLEL WITH AND 21.00 FEET DISTANT FROMTHE THE EASTERLY LINE OF SAID PARCEL 3, A DISTANCE OF 63.62 FEET;1 OF 2Page 10
EXHIBIT "A"LEGAL DESCRIPTIONTEMPORARY CONSTRUCTION EASEMENTAPN 773-370-003 - BERMUDASTHENCE SOUTH 89°57-47" EAST, A DISTANCE OF 21.00 FEET, TO THE EASTERLYLINE OF SAID PARCEL 3;THENCE SOUTH 00°02'13" WEST, ALONG THE EASTERLY LINE OF SAID PARCEL3, A DISTANCE OF 67.86 FEET, TO THE POINT OF BEGINNING;SUBJECT TO EXISTING EASEMENTS, COVENANTS, RIGHTS AND RIGHTS-OF-WAY OF RECORD.CONTAINING 2,243 SQUARE FEET OR 0.051 ACRES MORE OR LESS.AS DEPICTED ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF.PREPARED BY OR UNDER THE DIRECTION OF:^CHARLES R. HARRISP.L.S. 4989DATED: 7//^20/82 OF 2Page 11
EXHIBIT VBVTEMPORARY CONSTRUCTION EASEMENTAPN 773-370-003 - BERMUDASSEC. 1. T.6S., R.6E., SBMESMT. IN FAVOR OF VERIZON CAUFORNIA, INC. FOR PUBLIC UnUPfPURPOSES PER INST. NO. 496648, REC, 10/12/2001, O.R.(ESMT. DHENDS THREE FEET OF EACH SIDE OF THE CENTERUNEOF THE ACTUAL LOCATION OF FACIUTIES - NOT PLOTTABLE)^.^^<°'PARCEL 5PARCEL MAP NO. 29886PM 199/29-50APN 773-370-003E'LY LINEPARCEL 3S 89'57'47" E21.00'~YTOE AREA-2,243 SQ. FT.0.051 AC.S'LY UNEPARCEL 3CALL.E TAMPICON QO'02'13" E63.62'N 44"19'10" E_ 2I.31,36'N00-04' 19'W (R)N00-01'28"E (R'I-P.O.B.MOST SE'LYCOR. P(S. 3—^-TJNE DATANO.Tl~L2_L3BEARINGN 89'57'16'i~W~S 44'IS'IQ' WS OQ'02'13" WLENGTHTaT5r32,41'6Z86^CURVE DATANO.C1C2DELTA^6-08'OZ1'06'01'SO*RADIUS1250.00'-t255j}0'LENGTH133.82'132.09'DATED:,tJ.N. 2396MSA CONSULTING, INC.PLANNING • CIVIL ENOINEERINaLAND SURVBYDOTSHEET 1 OF 1Page 12
Exhibit "C"Comparable Listing and Sales1. COMP ADDRESS No Situs Address. APN: 770-153-002 (Sale)Property TypePropertyZoning:Sale Date:Sale Price:Lot Size:Jndevelopedcommerciali/C - Village Commercial)4/12/2017?150,000.001.1,633 sq. ft. (calculated3er assessor'sjimensions)Buyer:Seller:Confirmed:Price per SF:Misha Jackson<enneth A. Schork, et.al.:>ublic Records/Broker3eorge Huston?12.892. COMP ADDRESS No Situs Address. APN: 770-153-002 (Escrow)Property TypeProperty Zoning:Escrow Date:Jndeveloped Commercial/C - Village Commercialcurrently in escrowEscrow Price:I Lot Size:?175,0001.1,633 sq. ft. (calculatedier assessor'sJimensions).Buyer:Seller:Confirmed:BrokerPrice per SF:M/AMisha JacksonSeorge Huston,3roker?15.04COMP ADDRESS No Situs. APN: 770-153-005 (Sale)Property TypeProperty Zoning:Sale Date:Jndeveloped CommercialBuyer:/C - Village CommercialLO/26/2016Seller:Confirmed:Sale Price:Lot Size:;209,500.00?l,160sq.ft. (calculatedser assessor'sjimensions)Price per SF:Did Town Artisanitudio. Inc.i&H La Quinta LLCiuyerand Publicrecords?9.90Page 13
Exhibit "C" Continued4. COMP ADDRESS 51355 Desert Club Drive. APN: 770-152-016 (SaProperty TypeProperty Zoning:I Sale Date:I Sale Price:I Lot Size:Undeveloped Commercialt/C - Village Commercial32/06/17?300,00014,375Buyer:Seller:Confirmed:Price per SF:Misha Marie Jackson^uss Clark:>ublic Records;20.875. COMP ADDRESS No Situs. APN: 770-152-015 (Listing)Property TypeProperty Zoning:Listing Date:Undeveloped CommercialVC - Village Commercial12-20-2017Listing Price:$315,000 (Reduced from$350,000)Buyer:Seller:confirmed:N/AParker Family TrustLisa Capone, ListingBrokerLot Size:15,163 sq. ft.Price per SF:$20.776. COMPS ADDRESS No Situs. APN 770-156-007 (Listing)Property TypeProperty Zoning:Listing Date:Listing Price:Lot Size:Jndeveloped Commercialk/C-Village Commercial12/01/2017?229,50010,057 sq. ft.Buyer:Seller:Confirmed:Price per SF:M/A:<ickand Shelly Morris-isting Agent Office La^uinta Palms RE?22.82Page 14
Loss of GoodwillCalifornia law provides that under the circumstances detailed below, a businessowner may be compensated for a loss of goodwill. Section 1263.510 of CaliforniaCode of Civil Procedure states:(a) The owner of a business conducted on the property taken, or on theremainder if such property is part of a larger parcel, shall be compensated for lossof goodwill if the owner proves all of the following:1. The loss is caused by the taking of the property or the injury to theremainder;2. The loss cannot reasonably be prevented by a relocation of thebusiness or by taking steps and adopting procedures that a reasonably prudentperson would take and adopt in preserving the goodwill;3. Compensation for the loss will not be included in payments underSection 7262 of the Government Code; and4. Compensation for the loss will not be duplicated in the compensationotherwise awarded to the owner.(b) Within the meaning of this article, "goodwill" consists of the benefits thataccrue to a business as a result of its location, reputation for dependability, skill orquality, and any other circumstances resulting in probable retention of old oracquisition of new patronage.Page 15