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03 OTLQ - Offer of Just Compensation (PSE) 09-24-18ta 0aigra - GEM of.iw DESERT — MEMORANDUM TO: Frank J. Spevacek, City Manager FROM: Julie Mignogna, Management Analyst DATE: September 26, 2018 RE: La Quinta Village Complete Streets Project Offers of Just Compensation and Appraisal Basis of Offer for Assessor Parcel Numbers: • 770-020-003 and 770-020-003 (Atallah) - $2,050 • 770-020-036 (Jade Properties) - $7,100 • 773-370-003 (50905 Bermudas, LLC) $8,100 • 770-123-001 (OTLQ, LLC) - $9,900 and $3,400 Attached for your signature are the Offer Letters for the properties referenced above. Please sign the attached agreement(s) and return to Julie Mignogna for processing and distribution. Requesting department shall check and attach the items below as appropriate: X Contract payments will be charged to account number: 401-0000-74010 Project Act 151603L X Amount of Agreement, Amendment, Change Order, etc.: $30,550.00 N/A A Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) is attached with no reportable interests in LQ or reportable interests A Conflict of Interest Form 700 Statement of Economic Interests is not required because this Consultant does not meet the definition in FPPC regulation 18701(2). Authority to execute this agreement is based upon: X Approved by the City Council on September 18 2018 (Closed Session Item No. 2) 2M-0% City Manager's signature authority provided under Resolution No. 20+5-e*5 for budgeted expenditures of $50,000 or less. This expenditure is $ and authorized by [Council, Director, etc] Initial to certify that 3 written informal bids or proposals were received and considered in selection The following required documents are attached to the agreement: Insurance certificates as required by the agreement (approved by Risk Manager on e) Performance bonds as required by the agreement (originals) City of La Quinta Business License number A requisition for a Purchase Order has been prepared (amounts over $5,000) X A copy of this Cover Memo has been emailed to Finance (Sandra) Revised May 2017 ta Q�W CALIFORNIA September 24, 2018 Mr. Wells Marvin OTLQ, LLC 78-100 Main Street, Suite 203 La Quinta, CA 92253 Regarding: La Quinta Village Complete Streets Project Offer of Just Compensation and Appraisal Basis of Offer Property Located at: Southeast corner of Calle Tampico and Desert Club Drive Assessor Parcel No.: 770-123-001 Dear Mr. Marvin: The City of La Quinta, (hereinafter called the "City', is proposing the construction of the of the La 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 permanent street easement over a portion of your property located at the southeast corner of Calle Tampico and Desert Club Drive in the City of La Quinta. The specific area proposed for the easement is 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 offer to purchase a permanent street over the portion of your property identified above, for the sum of $9,900.00 (Nine Thousand Nine Hundred and No/100 Dollars), which is segregated as follows: $ 9,900.00 Permanent Street Easement (including improvements) $ 0.00 Net Severance Damage $ 0.00 Severance Damage — Cost to Cure $ 9,900.00 Total Offer to Purchase (Rounded) The amount offered is based upon a valuation study performed by the City and is explained in the enclosed Statement of Just Compensation and Summary Statement. This offer is the full amount the City believes to be "Just Compensation" and is not less than the approved valuation of its fair market value. The amount of this offer does not include compensation for any relocation benefits you may be entitled 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 any possessory or other interests in the Property will be your responsibility. ta (2"tra CALIFORNIA OTLQ, LLC September 24, 2018 Page 2 It is the City's hope that this price is agreeable to you, and that the acquisition can begin immediately. If so, the City will begin preparation of a Purchase and Sale agreement memorializing the terms 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 permanent street easement described above, excluding any oil, gas, or mineral rights below the depth of 500 feet, and subject to terms and conditions set out below, and assuming that the Property is free of any environmental contamination or Hazardous Materials, and that it is not the subject of any ongoing environmental investigation or alleged violations of Environmental Laws.' Payment will be made when the title to the Property vests in the City free and clear of all recorded or unrecorded liens, 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 of governmental 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, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 , as amended by the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C.A. § 9601), the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et seg.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seg.), the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seg.), the Clean Air Act (42 U.S.C. § 7401 et seg.), the Toxic Substances Control Act (15 U.S.C. § 2601 et sec.), the Oil Pollution Act (33 U.S.C. § 2701 et sec.), the Emergency 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 sec.), the Toxic Mold Protection Act (Cal. Health & Safety Code § 26100, et Leg.), the Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. Health & Safety Code § 25249.5 et seg.), 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 the Carpenter -Presley -Tanner Hazardous Substances Account Act (California Health and Safety Code, Section 25300 et seg.). As used in this letter, the term "Hazardous Material(s)" includes, without limitation, any hazardous or toxic material, substance, irritant, chemical, or waste, including without 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," "hazardous material," "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, and which is or becomes regulated by any local governmental authority, any agency of the State of California or any agency of the United States Government, (c) asbestos, and asbestos containing material, (d) oil, petroleum, petroleum based products and petroleum additives and derived substances, (e) urea formaldehyde foam insulation, (f) polychlorinated biphenyls (PCBs), (g) freon and other chlorofluorocarbons, (h) any drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, natural gas or geothermal resources, (i) mold, fungi, viruses or bacterial matter, and 0) lead -based paint. t(V QWk(V CALIFORNIA OTLQ, LLC. September 24, 2018 Page 3 1. Taxes for the year in which the Property is purchased, which shall be cleared and paid in the manner required by Section 5086 of the Revenue and Taxation Code, if unpaid at the time escrow for the purchase closes; 2. Covenants, conditions, restrictions and reservations of record, that do not interfere with the City's proposed use of the Property; 3. Easements or rights -of -way over the land for public or quasi -public utility or public street purposes, if any; and 4. Any other interests in the Property or exceptions to title appearing on a preliminary title report 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 against you and all persons or entities who may be responsible for any environmental contamination or any Hazardous Materials that may exist or may have existed on or migrating to or from the Property, including all 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 and will answer any questions you have regarding this offer letter and its attachments. You can reach Addiel Flores of OPC at 760-776-1238. If for any reason you are not satisfied with this offer of just compensation, and have additional relevant information that you would like the City to consider regarding the value of the property proposed to be acquired, it will be happy to do so. We would also welcome speaking with you to clarify any questions or concerns you may have regarding the scope of the easements proposed to be acquired. If you have such 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 the City 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 easement and CAI IFORNIA OTLQ, LLC. September 24, 2018 Page 4 any resulting damages fixed by a court of law. Please be advised that in such event, the terms of this offer and the contents of this letter may be excluded from consideration as an offer of settlement, under California Evidence Code sections 1152, 1154, or other applicable provisions of law. In compliance with Government Code section 7267.2, included with this offer letter is an information pamphlet describing the eminent domain process. This brochure is being provided to you for informational purposes only and is not to be construed as legal advice. utler, LLC. STATEMENT OF JUST COMPENSATION Date of Offer: September 24, 2018 Assessor's 770-123-001 Parcel: Property OTLQ, LLC, a Delaware Limited Liability Company Owner(s): Property Southeast Corner of Calle Tampico and Desert Club Drive, La Quinta, Location: California Legal See Attached Exhibits "A" and "B" Description: Public Use for Permanent Street Easement Property: Date of Value: August 27, 2018 Estate to be Easement Acquired: Area to be 538 Square Feet of Permanent Street Easement Acquired: Highest and Best Use: Highest and Best Use is defined as the reasonably probable and legal use of land which is legally permissible, physically possible, and financially feasible that results in the highest value. Highest and best use analysis is used in the appraisal process to identify comparable properties and, where applicable, to determine whether the existing improvements should be retained, renovated, or demolished. The result of the highest and best use analysis, as improved, is Commercial Development in compliance with existing zoning Present Use: Improved Parking Lot Zoning: VC — Village Commercial Improvements: Miscellaneous landscaping Page 5 Summary of the Basis for Just Compensation Value 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 is available. Since the main valuation of the easement is only considering the land value, the Income Approach and the Cost Approaches to value were deemed not to be relevant and was not utilized in this valuation. Sales Comparison Approach The sales comparison approach is used to derive a value indication by comparing the property being appraised to similar properties that have sold recently, applying appropriate units of comparison, and making adjustments to the comparables based on the elements of comparison. This is a preferred method of valuation when comparable sales data are available. The appraiser identified the sales listed in Exhibit "C" attached hereto, as being most helpful when estimating the value of the subject property: Sales Approach Analysis: Value of the larger parcel (land value only) in the Before Condition pursuant to the Sales Comparison Approach: $102,060.00 Value of the Easement area pursuant to Sales Comparison Approach (land value only): 538 sq. ft. @ $18.00 per sq. ft. $ 9,684.00 In addition, in establishing the amount believed to be just compensation, the City's appraisal assessed whether or not there were damages and benefits to the remaining property. The basis for this determination is whether or not the remainder had been diminished in value by reason of the acquisition of the easement being acquired and the construction of the improvement in the manner proposed (severance damage) and, if so, whether the same remainder had been increased in value by reason of the construction of the improvement in the manner proposed (benefits). If there are no severance damages, then the determination of whether there is a benefit is inapplicable since benefits 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 Taking $102,060.00 Value of the Part Taking $ 9,684.00 $9,684.00 Value of the Remainder Before the Taking $ 92,376.00 Value of the Remainder After the Taking $ 92,376.00 Severance Damage $ 0.00 Project Benefits $ 0.00 Net Severance Damages $ 0.00 $ 0.00 Cost to Cure $ 0.00 Value of Improvements 250.00 Total Just Compensation (Rounded) $9,900.00 Valuation Conclusion: Fair Market Value of Easement, Including Improvements and Severance Damages $9,900.00 Page 6 Important Additional Information Regarding the City's Offer 1. In the event this offer is accepted, you are entitled to receive full payment prior to the City taking possession of the area being purchased unless you waive such entitlement. You are not required to pay recording fees, transfer taxes, or the pro-rata portion of real property taxes which are allocable to any period subsequent to the passage of title or possession, as they affect the subject area only. 2. Upon request by you, the City may offer to purchase any uneconomic a'remnant" which is/are owned by you or, if applicable, occupied by you as a tenant and which is/are contiguous to the land being conveyed. As used herein, "remnant" means a remainder property or portion thereof 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 be acquired, 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 these improvements has been made and agreed to. 4. The amount of just compensation being offered to you was based on a fair market value appraisal 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 of valuation that would be agreed by a seller, being willing to sell but under no particular or urgent necessity for doing so, nor obligated to sell, and a buyer, being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the full knowledge of all the uses and purposes for which the property is reasonably adaptable and available." (Section 1263.320 Code of Civil Procedure). The valuation of your property has been based upon an analysis of the most recent market data for similar uses of the properties in the immediate area. The appraiser has given full and careful consideration to the highest and best use for development of the property and to all features inherent in your property affecting its market value. The amount of this offer: a. Represents the full amount of the appraisal of just compensation for the property to be purchased; b. It is not less than the approved appraisal of the fair market value of the property as improved; c. Disregards 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 for which the property is to be acquired or by the likelihood that the property would be acquired for such public improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant; d. Does not reflect any consideration of or allowance for any relocation assistance and payments or other benefits which you may be entitled to receive under applicable State 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 the remaining property which will be affected by the purchase of the required property, may be entitled to compensation for the loss of goodwill. Claims for loss of business goodwill are governed 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 such loss in accordance with the provision of Sections 1263.510 and 1263.520 of the Code of Civil Procedure. This offer does not reflect any amount of compensation attributable to Page 7 any loss of business goodwill. If you would, like the City to consider whether goodwill should be evaluated as a part of this offer, it will do so. Such an evaluation will require you to provide certain information to the City, including detailed financial information and tax returns. Such an 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 an independent 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 with the 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 to the City within 90 days of the earliest of the following dates: (1) the date the selected appraiser requests payment from you for the appraisal; or (2) the date upon which you, or someone on your behalf, remits full payment to the selected appraiser for the appraisal. Copies of the contract (if a contract is made), appraisal report, and invoice for completed work by the appraiser must be provided to the City concurrent with submission of the appraisal cost reimbursement request. The cost must be reasonable and justifiable. 7. If you ultimately elect to reject the City's offer for your property, you are entitled to have the amount of compensation determined by a court of law in accordance with the laws of the State of California. 8. Because the City's public use for your property is scheduled to begin as soon as the City acquires the necessary property interests needed for the proposed project, and within two years of the acquisition of the subject property, the City does not offer a leaseback agreement for your property being acquired pursuant to Code of Civil Procedure Section 1263.615. Page 8 EXHIBIT "A" LEGAL DESCRIPTION RIGHT-OF-WAY APN 770-123-001 — OLD TOWN LA QUINTA IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING A PORTION OF LOT 61 OF DESERT CLUB TRACT UNIT NO. 4, AS SHOWN BY MAP ON FILE IN BOOK 21, AT PAGE 60, OF MAPS, OFFICIAL RECORDS OF SAID COUNTY, LOCATED IN THE NORTHWEST QUARTER OF SECTION 6, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHWESTERLY CORNER OF THE PROPERTY DESCRIBED BY GRANT DEED RECORDED MARCH 17, 1992 AS INSTRUMENT NO. 090772, OFFICIAL RECORDS OF SAID COUNTY; THENCE SOUTH 89'41'15" EAST, ALONG THE SOUTHERLY LINE OF SAID INSTRUMENT NO. 090772, A DISTANCE OF 6.83 FEET; THENCE NORTH 42'53'50" EAST, ALONG THE SOUTHERLY LINE OF SAID INSTRUMENT NO. 090772, A DISTANCE OF 8.47 FEET TO THE BEGINNING OF A NON -TANGENT CURVE, CONCAVE EASTERLY, HAVING A RADIUS OF 28.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 75'08'01" WEST; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 22'56'03", AN ARC DISTANCE OF 11.21 FEET; THENCE SOUTH 08'04'04" EAST, A DISTANCE OF 10.84 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 100.00 FEET; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 08'04'04", AN ARC DISTANCE OF 14.08 FEET; THENCE SOUTH 00'00'00" WEST, A DISTANCE OF 14.11 FEET TO THE BEGINNING OF A NON -TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 20.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 16'02'03" WEST, SAID POINT ALSO BEING ON THE SOUTHERLY LINE OF SAID LOT 61; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE AND THE SOUTHWESTERLY LINE OF SAID LOT 61, THROUGH A CENTRAL ANGLE OF 74'01'47", AN ARC DISTANCE OF 25.84 FEET; THENCE NORTH 00'03'50" EAST, ALONG THE WESTERLY LINE OF SAID LOT 61, A DISTANCE OF 24.58 FEET, TO THE POINT OF BEGINNING; 1 OF 2 Page 9 EXHIBIT "A" LEGAL DESCRIPTION RIGHT-OF-WAY APN 770-123-001 — OLD TOWN LA QUINTA SUBJECT TO EXISTING EASEMENTS, COVENANTS, RIGHTS AND RIGHTS -OF - WAY OF RECORD, CONTAINING 538 SQUARE FEET OR 0.012 ACRES MORE OR LESS. AS DEPICTED ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF. PREPARED BY OR UNDER THE DIRECTION OF: CKAW�B A HAtns CHARLES R. HARRIS P.L.S. 4989 1. Ha. +869 1 DATED: O 2OF2 Page 10 EXHIBIT 'BN RIGHT-OF-WAY APN 770-123-001 - OLD TOWN LA QUINTA SEC. 6, T.6S., R.7E., SBM MOST SW'LY COR. R/W DEDICATION 2s' CALLE TAMP IC9-4�` 1 R/W DEDICATION PER INST, NO. 0 / 090772. REC. 03/17/1992, O.R. / S'LY UNE R/W �L + DEDICATION Ij 7N 5'08'01' W fir}7PN OT 61 �1>1 21 /60 ,� ro 30-123-001 W AREA�4,�'. 538 SO. FT. 0.012 AC. '03" W ~ - - MANY 0' 40' 80' SCALE 1 "-40' �T uO s Nm 4187 9 O DATED: -2 / g M CURVE DATA NO. DELTA RADIUS I LENGTH C1 2756'03' 28'00' 11.21' C2 08'04'04 100.00 14.08 C3 74'01 47 20.00 25.84' LINE DATA NO. BEARING LENGTH L7 5 8W41 15 E 6'83 L2 N 4753 50 E 8.47 L3 S 08'04 04 E 10.84 L4 S 00'00 00 W 14.11 L5 N 0703 50 E Z4.58 IDMSA CONSULTING, INC PLANNING ■ C m ENGNEERING LAND SURVEYING J.N. 2396 SHEET 1 OF 1 Page 11 Exhibit "C" Comparable Listing and Sales 1. COMP ADDRESS Property Type No Situs Address. APN: Undeveloped Commercial 770-153-002 (Sale) Buyer: Nisha Jackson Property Zoning: VC— Village Commercial Seller: Kenneth A. Schork, et. al. Sale Date: 04/12/2017 Confirmed: Public Records/Broker George Huston Sale Price: j $150,000.00 Lot Size: 11,633 sq. ft. (calculated per assessor's dimensions) Price per SF: $12.89 Property Type Undeveloped Commercial Property Zoning: VC —Village Commercial Escrow Date: Currently in escrow Escrow Price: $175,000 Lot Size: 11,633 sq. ft. (calculated per assessor's dimensions) Property Type ' Undeveloped Commercial Property VC —Village Commercial Buyer: I I N/A Seller: Confirmed: Broker I Nisha Jackson George Huston, Broker Price per SF: $15.04 U Buyer: Old Town Artisan Studio, Inc. Seller: J B&H La Quinta LLC Zoning: Sale Date: 10/26/2016 Sale Price: $209,500.00 Lot Size: 21,160 sq. ft. (calculated per assessor's dimensions) Confirmed: Buyer and Public Records I Price per SF: $9.90 Page 12 Exhibit "T" Continued 4. COMP ADDRESS 51355 Desert Club Drive. APN: 770-152-016 (Sale) Property Type Undeveloped Buyer: Nisha Marie Jackson Commercial Property VC —Village Commercial Seller: Russ Clark Zoning: Confirmed: Public Records Sale Date: 02/06/17 Sale Price: $300,000 Lot Size: 14,375 Price per SF: $20.87 5. COMP A..• A• Property Type Undeveloped Buyer: N/A Commercial Property VC —Village Commercial Seller: Parker Family Trust Zoning: Listing Date: 12-20-2017 Confirmed: Lisa Capone, Listing Broker Listing Price: $315,000 (Reduced from $350,000) Lot Size: 15,163 sq. ft. EF—Price per SF: $20.77 Property Type Undeveloped Buyer: N/A Commercial Property Zoning: VC- Village Commercial Seller: Rick and Shelly Morris Listing Date: 12/01/2017 Confirmed: Listing Agent Office La Quinta Palms RE Listing Price: $229,500 Lot Size: 10,057 sq. ft. Price per SF: $22.82 Page 13 Loss of Goodwill , California law provides that under the circumstances detailed below, a business owner may be compensated for a loss of goodwill. Section 1263.510 of California Code of Civil Procedure states: (a) The owner of a business conducted on the property taken, or on the remainder if such property is part of a larger parcel, shall be compensated for loss of goodwill if the owner proves all of the following: 1. The loss is caused by the taking of the property or the injury to the remainder; 2. The loss cannot reasonably be prevented by a relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill; 3. Compensation for the loss will not be included in payments under Section 7262 of the Government Code; and 4. Compensation for the loss will not be duplicated in the compensation otherwise awarded to the owner. (b) Within the meaning of this article, "goodwill" consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage. Page 14