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HomeMy WebLinkAbout600-390-033 Paul - Fee Appraisal 04-10-19APPRAISAL REPORT Proposed Acquisitions City of La Quinta Dune Palms Road Bridge Project OWNERSHIP: James R. Paul and Sharon L. Paul Assessor’s Parcel Number: 600-390-033 79440 Corporate Center Drive La Quinta, California 92253 Prepared for: Overland, Pacific & Cutler, LLC 2280 Market Street, Suite 200 Riverside, California 92501 Date of Valuation November 6, 2018 Date of Report April 10, 2019 April 10, 2019 John M. Cutler, Sr. Project Manager Overland, Pacific & Cutler, LLC 2280 Market Street, Suite 200 Riverside, California 92501 Re: Our File No. 18-6204 OWNERSHIP: James R. Paul and Sharon L. Paul Assessor’s Parcel Number: 600-390-033 Appraisal of a proposed temporary construction easement to be located at 79440 Corporate Center Drive, in the city of La Quinta, California 92253 Dear Mr. Cutler: In accordance with your authorization, the larger parcel has been examined for the purpose of forming an opinion of the fair market value of the fee simple interest as of November 6, 2018. The function of the appraisal is for use by Overland, Pacific & Cutler, LLC (OPC), the City of La Quinta, Bengal Engineering and the California Department of Transportation to assist in the possible partial acquisition of the property. The larger parcel is being appraised to provide an opinion of the fair market value. This appraisal will be used in negotiations with the property owner for the possible partial acquisition of the larger parcel as part of the Dune Palms Road Bridge Project. The City of La Quinta proposes to construct an all-weather crossing and remove the existing low-water crossing of Dune Palms Road at the Coachella Valley Storm Water Channel. The crossing will consist of a 480-foot long by 86-foot wide, four-span bridge. The bridge’s typical section consists of six-foot sidewalks on both sides of the bridge, two (2) eight-foot outside shoulders also serving as bike/golf cart lanes, a 10-foot wide raised median, two (2) eleven-foot travel lanes and two (2) twelve-foot travel lanes. Additional project features include reconstruction of the north and south bridge approaches to accommodate the raised profile of the roadway to meet the bridge elevation, installation of a concrete slope protection at the northwest and southeast corners of the bridge, relocation of overhead electrical distribution lines and relocation of sewer lines at the northern bridge abutment. Overland, Pacific & Cutler, LLC April 10, 2019 Page Two The larger parcel is one parcel with a site area of 3.10 acres, or 135,036 square feet. It is currently improved with a multi-tenant business park and site improvements including parking and driving areas and landscaping. According to the legal description provided, the project as proposed includes one temporary construction easement. The temporary construction easement will be approximately 1,947 square feet in size and run along the eastern property line and a portion of the southeasternmost corner of the larger parcel. The purpose of the acquisition is for activities associated with Dune Palms Road Bridge Project. LARGER PARCEL AND PROPOSED ACQUISITION Acquisition Type Larger Parcel Current Use Assessor’s Parcel Number Larger Parcel Size Acquisition Area Temporary Construction Easement Multi-tenant Business Park 600-390-033 3.10 acres 135,036 SF 1,947 SF Typically, when valuing acquisitions, the estimated fair market value of the land to be acquired is based on land sales data for other properties with essentially the same utility and amenities. The larger parcel is zoned CP, Commercial Park, with a General Plan Land Use of Commercial. Uses include automobile repair, warehousing and storage, showroom/office, office/warehouse, high-tech light manufacturing and similar uses which serve the needs of the local and regional trade area. A range of retail and general commercial uses are also allowed. The following is an Appraisal Report as identified under Section 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). The appraisal is made in compliance with the guidelines set forth in the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute, and USPAP, adopted by the Appraisal Standards Board of The Appraisal Foundation. The appraisal is made in compliance with the guidelines set forth by California Eminent Domain Law, the California Department of Transportation, and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (the Uniform Act). Kiley Company Overland, Pacific & Cutler, LLC April 10, 2019 Page Three APPRAISAL CONCLUSION As of November 6, 2018, the opinion of compensation for the proposed acquisition is as follows: Property Rights Value Opinion Compensation VALUE OF THE LARGER PARCEL "AS IF VACANT" (Land Only)$2,025,540 Permanent Acquisition(s) Not Applicable $0 TOTAL PERMANENT ACQUISITIONS $0 Damages Value of Remainder as Part of the Whole $2,025,540 Value of the Remainder After Acquisition $2,025,540 TOTAL DAMAGES $0 $0 Benefits $0 TOTAL BENEFITS $0 TOTAL PROPERTY RIGHTS COMPENSATION $0 Temporary Acquisition Temporary Construction Easement - 1,947 Square Feet $10,514 Improvements in TCE Area - Replaced in Kind $0 Temporary Impacts $0 TOTAL COMPENSATION FOR TCE RIGHTS $10,514 TOTAL COMPENSATION $10,514 ROUNDED $10,600 * Minor differences due to rounding APPRAISAL CONCLUSION Kiley Company Overland, Pacific & Cutler, LLC April 10, 2019 Page Four The following is an appraisal report which sets forth the investigation, data, and analyses upon which the conclusion is predicated. This letter must remain attached to the appraisal report in order for the value to be considered valid. Respectfully submitted, Elizabeth M. Kiley, MAI, AI-GRS Meredith McDonald Certified General Real Estate Appraiser Certified General Real Estate Appraiser Certificate No. AG005391 Certificate No. AG043409 Expiration Date: April 13, 2020 Expiration Date: December 13, 2019 Kiley Company TABLE OF CONTENTS Transmittal Letter ...................................................... i Table of Contents ...................................................... v Introduction .......................................................... 1 Area Description........................................................ 7 Market Conditions ...................................................... 21 Project Description ..................................................... 24 Parcel Valuation ........................................................ 27 Appraisal Conclusion .................................................... 49 Certification ........................................................... 50 Qualifications .......................................................... 51 Market Data ........................................................... 55 Addenda ............................................................. 56 Kiley Company Page v INTRODUCTION Property Location:79440 Corporate Center Drive La Quinta, California 92253 Assessor’s Parcel Number:600-390-033 Purpose and Intended Use of Report:To provide an opinion of the fair market value for the larger parcel and compensation for the proposed acquisitions. This appraisal will be used in negotiations with the property owner for the possible partial acquisition of the larger parcel. Client:Overland, Pacific and Cutler, LLC Intended Users:Overland, Pacific and Cutler, LLC, the City of La Quinta, Bengal Engineering and the California Department of Transportation Date of Owner Notification:September 20, 2018 by Overland, Pacific and Cutler, LLC; October 22, 2018 by Kiley Company Date of Inspection:November 6, 2018 Date of Value Opinion:November 6, 2018 Date of Report:April 10, 2019 Property Rights Appraised:Fee simple rights for the larger parcel land value and easement rights for the proposed easement acquisition Non-Realty Rights:There are no non-realty rights valued. Fair Market Value: Fair market value is defined by Sections 1263.320 and 1263.330 of the State of California Code of Civil Procedure as follows: 1263.320. (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. Kiley Company Page 1 (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. 1263.330. The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following: (a) The project for which the property is taken. (b) The eminent domain proceeding in which the property is taken. (c) Any preliminary actions of the plaintiff relating to the taking of the property. Appraisal Scope:As part of this appraisal, a number of independent investigations and analyses were made. Three approaches to value have been considered in this appraisal: the cost approach, the sales comparison approach and the income approach. Due to the fact that only the land is being valued in this appraisal, a land sales comparison approach is the primary approach utilized. The income approach is not applicable or relevant for land valuation and is omitted from this assignment. Where applicable, portions of the cost approach are used in the valuation of the site improvements impacted by the project as proposed. The larger parcel is zoned for a range of uses, including but not limited to commercial, retail, office, and business parks. To value the larger parcel, sales of similarly zoned land are analyzed. The summary of the scope of work should be considered in conjunction with the assumptions and limiting conditions set forth in this report. The investigations and analyses undertaken include the following: • A physical inspection of the larger parcel was made on November 6, 2018, with the property owner; • Collection and verification of relevant market data gathered from sources such as area brokers, CoStar, myFirstAm, and MLS. Direct and indirect verification was used for this assignment. Direct verification confirms information with a party directly involved in the transaction. Direct verification is attempted for all sales. Indirect verification uses information obtained from a secondary data source such as a public records Kiley Company Page 2 database, a secondary data provider or another appraiser; • Interviews with knowledgeable professionals as well as local governmental representatives and a review of website information regarding real property values, real estate taxes, and zoning issues in the area; • A primary field study of potentially competitive properties and projects for sale; and • Preparation of an appraisal report, which includes the most pertinent data and analyses used in developing the final value conclusion. Type of Report:Appraisal report USPAP Competency:The appraisers have the required knowledge and experience in the appraisal of similar property types. Estimated Marketing and Exposure Period:A review of the marketing and exposure times of comparable land sales was done as part of our analysis. The review indicated that typical marketing and exposure times for properties similar to the larger parcel range from six to 12 months. However, exposure and marketing times are not relevant to an estimate of fair market value for eminent domain purposes. A Jurisdiction Exception from USPAP is used. Ownership:According to public records, ownership is as follows: James R. Paul and Sharon L. Paul, husband and wife as joint tenants Property History:According to public records, there have been no other reported listings, sales or transfers of the larger parcel in the past five years. Legal Description:The legal description for the larger parcel is included in the Addenda. Assumptions and Limiting Conditions The certification of the appraisers appearing in this appraisal report is subject to the following extraordinary and general assumptions and limiting conditions: Extraordinary Assumptions USPAP defines an Extraordinary Assumption to be “an assumption directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinion or conclusion.” The use of an extraordinary Kiley Company Page 3 assumption may have an effect on the assignment results. This appraisal has the following extraordinary assumptions: Section 1263.330 of the California Code of Civil Procedure requires the appraisers to not consider any effect on value of the project, the eminent domain proceeding, or any preliminary actions of the acquiring agency. The appraisers investigated the real estate market for any influence these issues may have had in the market data selected and analyzed and could not find any. Therefore, we have prepared the appraisal analysis of the subject property in the “before” condition under the extraordinary assumption that these activities have no effect on the value conclusions stated in this appraisal report. Legal descriptions showing the area of the proposed acquisitions have been included herein. This appraisal is based on the information provided by the client that has been relied on in this appraisal report and is assumed to be accurate. Information regarding the temporary construction easement period indicates an estimated construction period of 48 months. This appraisal report is based on the assumption that the stated temporary construction easement duration is accurate. Should the information furnished by others vary, the assignment results could be affected. Hypothetical Conditions USPAP defines a hypothetical condition as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.” This appraisal report includes the following hypothetical condition. Use of this hypothetical condition may have had an effect on the appraisal results. The analysis in the “after” condition of the larger parcel has been prepared using the hypothetical condition that the project has been completed per the descriptions, plans and specifications presented in this appraisal report. The reader is advised that the value conclusions may be affected if there are changes in the size, location or design of the acquisition or project. General Assumptions The approximate land area of 3.10 acres, or 135,036 square feet, is based on the tax assessor’s map. For the purposes of this report, the information contained in the public records is utilized. If precise calculations or measurements are required, it is recommended that an architect or surveyor be retained. The date of value, for which the opinion of value is expressed in this report, is set forth in the letter of transmittal. The dollar amount of the value opinion is based on the purchasing power of the United States dollar on that date. A Preliminary Title Report, issued by Lawyers Title Company and dated June 19, 2018, was provided for review. The appraisers are not title experts; it is assumed that there are no existing easements, agreements, or restrictions that would adversely affect the value of the larger parcel. The reader is advised that the current title of this property Kiley Company Page 4 should be checked carefully, as title issues can influence value. The appraisers retain the right to adjust the conclusion of value if adverse title issues would so warrant. An environmental report was not provided for review. For purposes of this appraisal, it is assumed that there are no hazardous materials on the site, that the site is free of any type of contamination, and that there are no hazardous materials on or in the property that would cause a loss in value. During the inspection, evidence of the existence of potentially hazardous waste materials, endangered species or native habitats was not observed. However, the appraisers are not qualified to detect such substances. The property is appraised assuming that all applicable zoning and use regulations and restrictions have been complied with, unless otherwise stated. The appraisers are not experts in interpreting zoning ordinances and are not experts in legal matters. As far as can be ascertained, the zoning and development standards are as presented. A complete zoning study is beyond the scope of work of this assignment. If verification of the zoning and development standards is necessary, it is recommended that a qualified professional make such a determination. No responsibility is assumed for matters legal in character and no opinion is rendered as to title, which is assumed to be good and marketable. The premises are assumed to be free and clear of all leases, use restrictions and reservations, covenants, conditions, easements, cases or actions pending, tax liens, and bonded indebtedness, except as specified. The property is assumed to be under responsible ownership and competent management. Neither all nor any part of the contents of this report, or copy thereof, shall be conveyed to the public through advertising, public relations, news, sales, or any other media, without the prior written consent and approval of the appraisers. This limitation pertains to any valuation conclusion(s), the identity of the appraisers or the firm, and any reference to the professional organization with which the appraisers are affiliated or to the designations thereof. No responsibility is assumed for any conditions not readily observable during the customary inspection of the larger parcel which might affect the valuation, except those items specifically mentioned in this report. The right is reserved to change the valuation if so warranted, when supplied with further information if that information so dictates. No survey, legal, or engineering analyses of this property have been made. It is assumed that the legal description and area computations furnished are accurate. However, it is recommended that such analyses be made for exact verification through appropriate professionals before demising, hypothecating, purchasing, or lending occurs, or any decision is made requiring exact survey, legal, or engineering analyses. Maps, plats, and exhibits included in this report are for illustration only, as an aid for the reader in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced, or used apart from this report. Kiley Company Page 5 The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. Oil, gas, mineral, and subsurface rights, if any exist, were not considered in making this appraisal, unless otherwise stated, and are not a part of the appraisal. No responsibility is assumed for economic or physical factors which may occur after the date of this appraisal. In rendering this opinion, no responsibility is assumed for subsequent changes in management, tax laws, or economic or physical factors which may or may not affect said conclusion or opinion. The property is appraised assuming it is in full compliance with all applicable federal, state, and local environmental regulations and laws, unless otherwise stated. The property is appraised assuming that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based, unless otherwise stated. No opinion is intended to be expressed for matters that require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. There is no evidence that the site has special resource value for natural, cultural, recreational, or scientific concerns. Kiley Company Page 6 AREA DESCRIPTION Riverside County - Inland Empire The larger parcel is located in Riverside County, California. Riverside is often grouped with adjacent San Bernardino County to form the Riverside-San Bernardino Metropolitan Statistical Area (“MSA”). This region is commonly referred to as the “Inland Empire.” The urbanized areas are concentrated in the western portion of the county. Riverside County is bordered to the west by Los Angeles and Kern counties, to the south by San Diego and Imperial counties, to the southwest by Orange County, to the north by Inyo County, and to the east by Nevada and Arizona. Riverside County (more than 7,200 square miles in area) is the fourth largest county in the state. The county consists of fertile river valleys, low deserts, mountains, foothills and rolling plains. Most of the county’s population and employment are located in the southwestern portion of the county. Riverside and San Bernardino counties have been the biggest beneficiaries of adjacent counties being built out, resulting in both becoming two of the fastest growing counties in the country during some of the last 10 years. Strong growth into outlying areas is made possible by the extensive freeway system that exists throughout Southern California. The Ontario International Airport provides the majority of air transportation for the Inland Empire. Several major airlines, as well as regional commuter airlines, serve the Ontario International Airport. A network of freeways links urbanized areas of the Inland Empire. The major north and south arterials are the Ontario (I-15) Freeway and the Escondido (I-215) Freeway. The Riverside (SR-91), Pomona (SR-60) and San Bernardino (I-10) freeways provide east and west access to Los Angeles and to the desert communities. The following information is provided by the LAEDC Kyser Center for Economic Research, from its economic forecast in February 2017 (the most recent available for the Inland Empire). LAEDC provides some of the most detailed and current data on the economic health of the county. The following pages have been extracted from the 2017-2018 Forecast and Industry Outlook to provide a summary of the outlook for Riverside and San Bernardino counties. Kiley Company Page 7 Kiley Company Page 8 Kiley Company Page 9 Kiley Company Page 10 Kiley Company Page 11 Kiley Company Page 12 Kiley Company Page 13 Kiley Company Page 14 Coachella Valley The Coachella Valley is located in the eastern area of Riverside County and spans approximately 45 miles southeast from the San Bernardino Mountains to the Salton Sea. The valley is approximately 15 miles wide and surrounded on the southwest by the San Jacinto and Santa Rosa Mountains and on the northeast by the Little San Bernardino Mountains. The valley has ±410,000 permanent residents plus 1,000,000 temporary seasonal residents. Tourism brings additional visitors. The valley has some of the warmest winters in the United States, and in a typical year, more than 350 days of sunshine. Nine cities make up the Coachella Valley including Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage, plus various unincorporated communities. There are nearly 200 golf courses throughout the valley, as well as countless hiking trails, world class resorts, spas, and restaurants. The Coachella Valley is served by the I-10 Freeway which runs primarily east and west from Los Angeles into Arizona and beyond. Highway 111 branches off of, and runs primarily parallel to, the I-10 from Palm Springs in the north to Indio in the southeast. Coachella Valley Population City 1/1/2000 1/1/2010 1/1/2018 Percentage Change (Last Year) Cathedral City 42,647 51,037 54,791 0.90% Coachella 22,724 40,464 45,635 0.80% Desert Hot Springs 16,582 25,852 29,742 1.30% Indian Wells 3,816 4,941 5,574 0.50% Indio 49,116 75,122 87,883 1.40% La Quinta 23,694 37,307 41,204 1.50% Palm Desert 41,155 48,132 52,769 1.40% Palm Springs 42,807 44,385 74,406 1.20% Rancho Mirage 13,249 17,168 18,738 0.90% Coachella Valley Total 255,790 344,408 410,742 8.20% Source: California Dept. of Finance Kiley Company Page 15 City of La Quinta The city of La Quinta is a resort town, located at the southeastern corner of the Coachella Valley. It is approximately 20 miles east of Palm Springs, 100 miles east of Riverside and 150 miles east of Los Angeles. According to the U.S. Census Bureau, the city has a total of 35.6 square miles, of which 35.1 square miles are land and 0.4 square miles is water. The city’s elevation is approximately 56 feet above sea level. The city has a strong tourism industry, especially during the cooler winter months when “snowbird” tourists visit. According to the city, approximately 18,000 call La Quinta home between the months of October to May. The most prominent industry is golfing with more than 20 golf courses, including the world-famous PGA West, which has been host to numerous prestigious golf tournaments. The number of retail shopping centers has increased over the past 10 years with discount retailers and high-end retailers bringing in millions of revenue dollars to the City. According to the 2016/2017 Comprehensive Annual Financial Report, the top 10 employers within the city are as follows: Employers Activity Number of Employees Desert Sands Unified School District Government 2,677 La Quinta Resort & Club/PGA-West Hotel/Golf Resort 1,450 Walmart Retailer 340 Home Depot Retailer 198 Costco Retailer 180 Target Retailer 170 Lowe’s Home Improvement Retailer 140 Imperial Irrigation District Utility Company 131 Rancho La Quinta Golf Resort 127 Traditions Golf Club Golf Resort 96 Kiley Company Page 16 Kiley Company Page 17 Immediate Neighborhood Description The larger parcel is located on the northern portion of the city of La Quinta, in a populated area of the city, north of the majority of the resorts. Commercial development is located mostly to the south, along Highway 111, which runs throughout Coachella Valley. The immediate neighborhood includes a range of commercial, retail and residential uses. Demographic information reported by STDBOnline.com reports the following information within one-, three- and five-mile radii of the larger parcel. Demographic Profile One Mile Three Mile Five Mile 2018 Population 8,099 76,671 167,843 2023 Population Forecast 8,744 81,055 180,196 2018 Total Households 3,133 27,801 59,783 2018 Household Size 2.58 2.74 2.79 2023 Household Forecast 3,391 29,338 64,145 New Households Forecast 258 1,537 4,362 2018 Median Household Income $78,432 $64,805 $65,292 2023 Median Household Income $95,526 $78,379 $78,917 2018 Average Household Income $109,795 $98,840 $98,052 2023 Average Household Income $133,318 $119,888 $118,784 In conclusion, the larger parcel’s neighborhood and surrounding area is characterized as part of a relatively-densely populated desert area. The following pages provide a neighborhood location map and aerial photograph. Kiley Company Page 18 Kiley Company Page 19 Neighborhood Aerial Kiley Company Page 20 MARKET CONDITIONS The larger parcel is zoned for a range of commercial, retail and office uses; it is currently being used as a multi-tenant business park. There is limited published data available regarding market conditions specific to vacant land in the Inland Empire. Land values tend to follow the trends seen in the market for improved commercial properties. As such, general market analysis is conducted for the Inland Empire and surrounding Coachella Valley. The majority of the surrounding improvements are commercial (office and retail) and residential in nature. There is very little industrial use in this area. As such, this section will provide a brief discussion on the Inland Empire retail and office markets. The information provided in this section is based on third quarter 2018 data, which is the most recent data available as of the effective date of this appraisal report. Retail Future forecasts of job and population growth point to an increased need for nearby consumer services. The Inland Empire averaged 5.5% growth on an annual basis since the end of the recession. In general, the Inland Empire offers opportunities for retailers looking to expand in emerging markets. However, market conditions slowed in the third quarter 2018 due to the closures of big-box retailers, which was reflected in a significant increase in the vacancy rate. Undeterred, asking lease rates still climbed upward, due to strong demand. Approximately 174,448 square feet of space completed construction and just over 600,000 square feet of space is currently in the pipeline. Kiley Company Page 21 Inland Empire Retail Overview, Third Quarter 2018 Total Square Feet Vacancy Rate YTD Absorption SF Under Construction Avg. Asking Lease Rate East End 39,977,658 8.10% (77,690) 539,649 $2.07 High Desert 9,295,365 10.50% (34,253)0 $1.74 Low Desert 16,463,506 12.20% (291,923)0 $2.03 So. Riverside Co.18,416,335 6.40% 89,623 81,618 $2.32 West End 28,019,698 7.50% 370,908 0 $2.09 Total 112,172,562 8.50% 56,665 621,267 $2.05 Source: CBRE Office 2018 marked the Inland Empire’s sixth consecutive year of positive net absorption, increased asking lease rates, and lower vacancy rates. Vacancy in the Inland Empire West submarket dropped below 10% for the first time since 2007. This has also carried over into the first three quarters of 2018. Overall, the Inland Empire’s office market fundamentals remained strong. Net absorption was positive with 157,062 square feet of office space during the quarter and the average asking lease rate was $1.96 per square foot. Inland Empire Office Overview, Third Quarter 2018 Total Square Feet Vacancy Rate YTD Absorption SF Under Construction Avg. Asking Lease Rate Class A 9,147,775 9.80% 39,015 0 $2.10 Class B 10,577,719 8.90% 159,326 0 $1.82 Class C 4,924,245 8.30% 196,670 0 $1.62 Total 24,649,739 9.30% 395,011 0 $1.96 Source: CBRE Kiley Company Page 22 Industrial The Inland Empire’s industrial market continued to show strong indicators in 2018. Strong tenant activity during the year solidified the Inland Empire’s continued strong industrial growth in Southern California. Demand for big box industrial product remained the popular choice for many e-commerce related users throughout the year. Overall, the outlook for the Inland Empire’s industrial market remains positive. Inland Empire Industrial Overview, Third Quarter 2018 Total Square Feet Vacancy Rate YTD Absorption Under Construction Avg. Asking Lease Rate Inland Empire East 228,466,976 5.50% 2,839,734 17,757,693 $0.51 Inland Empire West 293,976,784 2.10% 1,879,050 8,080,388 $0.59 Inland Empire Total 522,443,760 3.60% 4,718,784 25,838,081 $0.56 Source: CBRE Local Area Trends - Land Sales The sales survey completed as part of the sales comparison approach reflects sale prices ranging from $6.96 to $19.33 per square foot of land area. There are few well-located sites available. Conclusion Market conditions for improved properties and vacant land are positive. Market data indicates land prices have been increasing during the past three to four years at a moderate rate. Improved sales prices have been increasing, but at a more moderate rate. However, within the subject’s specific submarket, land prices have been stable. Kiley Company Page 23 PROJECT DESCRIPTION Project Purpose The purpose of the project is to replace the existing low-water crossing spanning the Coachella Valley Storm Water Channel (CVSC) at Dune Palms Road with an all-weather access. The proposed improvements will accomplish the following: • Provide reliable route for emergency vehicles, motorists, pedestrians, and bicyclists traveling the corridor • Provide safe access across the CVSC (Whitewater River) and along the corridor during all-weather events • Improve traffic circulation Project Description The project proposes to remove the existing low-water crossing of Dune Palms Road at the CVSC in the City of La Quinta, Riverside County. The crossing will be replaced with a 480 foot long and 86 foot wide four-span bridge. The bridge typical section consists of six-foot sidewalk on both sides of the bridge, two (2) eight-foot outside shoulders also serving as bike/golf cart lanes, a raised median, two (2) eleven-foot travel lanes, and two (2) twelve-foot travel lanes. The proposed improvements will include a reconstruction of the north and south bridge approaches to accommodate the significantly raised profile of the roadway. In order to match the roadway section on the south side of the bridge, the project’s construction limits will be extended to 239 feet of Highway 111. As a part of the bridge construction, concrete slope protection will be installed along the north side of the channel. Additionally, minor removal and replacement of slope protection will be required on the south side of channel west of the proposed bridge and extension of slope protection approximately 465 feet east (downstream) of the proposed bridge. The slope protection is needed for scour countermeasures. As a result of the proposed cast-in-place drilled shaft bridge construction, scour protection within the bottom of the channel should not be required. The installation of the concrete slope protection will require the existing channel bank to be excavated at a 1.5:1 (horizontal to vertical) slope to the bottom of the channel, then at a 1:1 slope to the bottom of the slope protection. The current dirt channel bank is at an approximate slope of 2:1 to 2.5:1. Kiley Company Page 24 Existing Roadway The existing low-water roadway crossing width is 68 feet that would accommodate a four lane roadway section with no median, and eight foot wide sidewalk along the western edge and an eight foot shoulder along the eastern edge of the road. Immediately north of the channel crossing the existing right-of-way width does accommodate a second northbound through lane, however the existing mobile home park has a number of encroachments with site improvements within the street right of way. In addition, Dune Palms Road approximately one quarter mile north of the channel low- water crossing is a four lane roadway with a median, and immediately south of the channel crossing, the existing roadway width is sufficient to accommodate four through lanes. Subject Larger Parcel Impacts The project as proposed includes the following acquisition. All site improvements impacted by the project as proposed will be protected in place or replaced in kind as part of the project. LARGER PARCEL AND PROPOSED ACQUISITION Acquisition Type Larger Parcel Current Use Assessor’s Parcel Number Larger Parcel Size Acquisition Area Temporary Construction Easement Multi-tenant Business Park 600-390-033 3.10 acres 135,036 SF 1,947 SF Kiley Company Page 25 Kiley Company Page 26 PARCEL VALUATION Appraisal Summary and Valuation Proposed Acquisitions Dune Palms Road Bridge Project PROPERTY IDENTIFICATION Property Location:79440 Corporate Center Drive La Quinta, California 92253 Ownership:According to the title report provided for review, ownership is as follows: James R. Paul and Sharon L. Paul, husband and wife as joint tenants Assessor’s Parcel Number: 600-390-033 Mailing Address: 55585 Cherry Hills Drive La Quinta, California 92253 Legal Description: Included in the Addenda APPRAISAL INFORMATION Date of Owner Notification: September 20, 2018 by Overland, Pacific and Cutler, LLC; October 22, 2018 by Kiley Company Date of Inspection: November 6, 2018 Date of Value: November 6, 2018 Date of Report: April 10, 2019 Property Rights Appraised: Fee simple rights for the larger parcel land value and easement rights for the proposed acquisition. Proposed Acquisitions: The project as proposed includes the following acquisitions: Acquisition Type Easement Area Temporary Construction Easement 1,947 square feet Owner Notification and Interview: The property owner was notified of the intent to appraise the property via a letter from Overland, Pacific & Cutler, LLC dated September 20, 2018. Kiley Company Page 27 The property owner was notified of the intent to appraise the property via a letter from Kiley Company dated October 22, 2018. Mr. James Paul responded to the notice and an inspection was set for November 6, 2018. Meredith McDonald with Kiley Company met with Mr. Paul and his wife, Sharon Paul, on November 6, 2018. During the site inspection, the project as proposed was explained to Mr. and Mrs. Paul. The property owners expressed concerns regarding the impacts to the existing landscaping and indicated that they were in the process of “getting the property ready” to be put on the market for sale and wanted to re-do the existing landscaping. Photographs were taken of the existing landscaping; measurements were taken to show the property owner the approximate area of the temporary construction easement and what improvements would be impacted. DESCRIPTION OF THE L ARGER PARCEL Larger Parcel Area:The larger parcel is one parcel; according to the Assessor’s Parcel Map, the larger parcel site area is 3.10 acres, or 135,036 square feet. Topography and Shape:The larger parcel is essentially level with a slight slope along the northern and a portion of the eastern property line; the shape is rectangular. Site Description:The larger parcel is a commercially zoned site improved with a multi-tenant business park, parking and driving areas and landscaping. Frontage:Dune Palms Road: ±206 feet Corporate Center Drive: ±476 feet Zoning:The larger parcel is zoned CP, Commercial Park. The General Plan Land Use is Commercial. The CP Zone is to provide for the development and regulation of heavy commercial and light industrial uses located within the Highway 111 Corridor, as shown on the general plan. Uses include automobile repair, warehousing and storage, showroom/office, office/warehouse, high-tech light manufacturing and similar uses which serve the needs of the Kiley Company Page 28 local and regional trade area. A range of retail and general commercial uses are also allowed. Within the CP zone, the development standards are: Minimum Lot Size: Not applicable (no minimum/maximum) Maximum Floor Area Ratio: 0.35 Maximum Height: 50 feet Highest and Best Use: The highest and best use is defined as “the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.” (Source: The Appraisal of Real Estate, 14th Edition) Physically Possible The larger parcel is a mostly level site in a developed area with good access to utilities and transportation linkages. The site is a rectangular parcel, with sufficient size, width and depth to support many types of developments. The location, local street exposure and nearby population density appear to support various uses on the site. Legally Permissible The site is zoned CP, Commercial Park, which allows for a variety of commercial uses, including office, retail and service-related uses. The subject site, as though vacant, would likely be viewed as a potential site for commercial development. Financially Feasible Under current economic and financial conditions, surrounding uses and current development trends in the market area suggest that a commercial development may be feasible. Maximally Productive Commercial development under the allowable zoning would result in the highest value and is concluded to be the maximally productive use of the larger parcel. Most Probable Buyer The most probable buyer would be an investor or developer. Kiley Company Page 29 Conclusion: Highest and Best Use in the “Before” Condition “As If Vacant” The highest and best use of the subject larger parcel “as if vacant” is for current commercial development as allowed by zoning. “As Improved” The existing improvements are in average to good condition and operate successfully. The highest and best use “as improved” would be the continued use of the existing improvements. Improvements: The site is improved with a multi-tenant business park, constructed in 2004, with a total building area of approximately 42,514 square feet. There are no building improvements physically located within the proposed easement area; as such, no further description of the building improvements is needed. Assessor’s Information: According to public records, current taxes reflect the following: Assessed Land Value Assessed Imp. Value Total Value Base Taxes Special Assessments Total Taxes Tax Rate Area Base Tax Rate $1,164,058 $3,877,244 $5,041,302 N/Av N/Av $62,220 N/Av N/Av ** The reader is advised that the tax rolls are currently closed for Riverside County and tax information is not available. The indicated assessed values are based on information provided by Multiple Listing Ser vice; no tax information is available. In California, real property is assessed at 100% of market value. A reassessment occurs when a property is sold or transferred or when new construction or demolition occurs. Property taxes are limited by law to 1% of assessed value plus voter-approved obligations. Assessments may not increase by more than 2% annually. Utilities: Utilities are not available to the site. Soils and Drainage: It is unknown if there are any adverse soil conditions. There appear to be areas of natural drainage or water courses in various areas of the larger parcel. Kiley Company Page 30 Environmental Conditions: An environmental report was not provided as part of this assignment. The valuation assumes that the site is clear of any environmental issues, and no consideration has been given to any cost or effects of any possible contamination, remediation or environmental limitations which may exist. A biological report was not available for review. The existence of endangered species or native habitats may or may not be present on the property. The appraisers are not qualified to detect such species. Title Information: A preliminary title report, issued by Lawyers Title Company and dated June 19, 2018, was provided for review. It is assumed that there that no existing easements, agreements, or restrictions that would adversely affect the value of the larger parcel. The reader is advised that current title of this property should be checked carefully as title issues can influence value. The right is reserved to adjust the valuation estimate if adverse title items are revealed and would so warrant. Flood Hazards: The larger parcel is located within Flood Zone “X” as indicated on the National Flood Insurance Map, Community Map Panel No. 06065C2234G, dated August 28, 2008. Shaded Zone “X” is described as “areas of 0.2% annual chance flood hazard; areas of 1% annual chance flood with average depths of less than 1 foot or with drainage areas less than 1 square mile; and areas protected by levees from 1% annual chance flood.” The reader is advised that the larger parcel is located immediately adjacent to the Whitewater River, an existing flood control channel riverbed. It is unknown if the larger parcel is located within liquefaction or earthquake-induced zones, as the specific location is not mapped; however, the area immediately adjacent to the larger parcel is mapped and indicates that portions of the immediate area are located in liquefaction and earthquake-induced zones. This is according to a map obtained from the State of California Division of Mines and Geology, Indio Quadrangle. Kiley Company Page 31 Assessor’s Parcel Map Kiley Company Page 32 Larger Parcel Aerial Photograph Kiley Company Page 33 Larger Parcel Site and Street Photographs Dune Palms Road Looking South from Larger Parcel Dune Palms Road Looking North from Vacant Lot Across the Street Kiley Company Page 34a Larger Parcel Site and Street Photographs Dune Palms Road Looking South from Northern Side of the Flood Control Channel, in front of Mobile Home Park Dune Palms Road and Street Improvements in front of Larger Parcel Kiley Company Page 34b Larger Parcel Site and Street Photographs Larger Parcel from Vacant Lot Across Dune Palms Road Site Improvements and Signage at Corner of Corporate Center Drive and Dune Palms Road Kiley Company Page 34c Larger Parcel Site and Street Photographs Existing Building and Site Improvements Existing Building and Site Improvements Kiley Company Page 34d Larger Parcel Site and Street Photographs Existing Building and Site Improvements Flood Control Channel and Improvements along Northern Portion of Larger Parcel Kiley Company Page 34e Larger Parcel Site and Street Photographs Existing Site Improvements Existing Site Improvements Kiley Company Page 34f PROPOSED PROJECT INFORMATION Proposed Acquisition: According to the information provided, the project as proposed includes the following acquisitions: ACQUISITION AREA Temporary Construction Easement 1,947 square feet Temporary Construction Easement The proposed temporary construction easement is approximately 1,947 square feet. It is located in an existing landscaped area, along the eastern and a portion of the southeastern corner of the larger parcel. It is essentially a long, narrow easement, approximately 10.11 feet in width, narrowing to 8.29 feet around the southeastern corner. The temporary construction easement will be acquired for a 48-month duration. Site Improvements in the Acquisition Areas: Information provided by representatives for the client indicates that the site improvements impacted by the project as proposed will be protected in place (where possible) or replaced in kind as part of the project. Compensation is not provided for the impacted site improvements. DESCRIPTION OF THE REMAINDER AF TER ACQUISITION Area of Remainder:The project as proposed includes a temporary construction easement; there are no permanent impacts. The larger parcel area will remain the same. AREA AFTER USE OF THE ACQUISITION “Before” Site Area 135,036 SF Temporary Construction Easement - No Permanent Impacts 0 SF “After” Site Area 135,036 SF Kiley Company Page 35 Physical Features After the Acquisition: PHYSICAL FEATURES AFTER THE ACQUISITION Shape Unchanged Topography Unchanged Drainage Unchanged Street Access Unchanged Street Visibility Unchanged Parking Unchanged Zoning Unchanged Highest and Best Use Unchanged Conclusion:In the “after” condition, the larger parcel “as if vacant” will be effectively unchanged and remain suitable for those uses permitted by zoning. No building improvements will be affected by the proposed work. Highest and Best Use:The property use will be unchanged in the “after” condition. Kiley Company Page 36 Kiley Company Page 37a Kiley Company Page 37b Larger Parcel Acquisition Photographs Site Improvements as of the Effective Date of Appraisal Site Improvements as of the Effective Date of Appraisal Kiley Company Page 38a Larger Parcel Acquisition Photographs Site Improvements as of the Effective Date of Appraisal Site Improvements as of the Effective Date of Appraisal Kiley Company Page 38b Larger Parcel Acquisition Photographs Site Improvements as of the Effective Date of Appraisal Site Improvements as of the Effective Date of Appraisal Kiley Company Page 38c Larger Parcel Acquisition Photographs Site Improvements as of the Effective Date of Appraisal Site Improvements as of the Effective Date of Appraisal Kiley Company Page 38d VALUE OF THE L ARGER PARCEL (L AND ONLY) In the valuation of the larger parcel, the sales comparison approach is developed, based on the market value of the land “as if vacant.” This is based on land sales zoned for commercial use to assist in the estimate of compensation for the area to be acquired. Sales Comparison Approach - Commercial Land Value The estimated fair market value of the land is based on land sales data for other properties with essentially the same utility and amenities as the larger parcel. The larger parcel is a commercially zoned site located on a secondary street with average access. The property is located in a mostly commercial neighborhood, approximately one-quarter mile north of Highway 111. The surrounding neighborhood is mostly commercial in nature with a mix of retail and office uses. The current zoning does put limitations on resort and hospitality as allowable uses. To estimate the value of the larger parcel, a search was conducted of the market area for similar land sales. The search included commercially zoned properties throughout the desert area of Riverside County. The unadjusted values for the comparable land sales found range from $6.96 to $19.33 per square foot. Of the comparables discovered, six properties were chosen for comparison. The comparables sold between July 2016 and April 2018 with one property currently in escrow. The comparison grid has been included in order to illustrate the magnitude and direction of the adjustments which may be applicable for varying characteristics. The size of the submarket limits the amount of data for paired sales or statistical comparison. In such markets, the appraisers utilize their best judgement to make reasonable estimates for adjustments based on the available data, conversations with market participants and professional experience. The use of the grid is a way to model buyer actions and analyze sales data to quantify the impact of certain characteristics on value. Quantitative and qualitative techniques can be used to estimate the relative significance of differences. On the following pages, the reader will find a Commercial Land Sales Summary, Comparable Land Sales Map and a Land Sales Adjustment Grid. A brief discussion on the comparables follows. Data sheets for the comparables, as well as assessor’s parcel maps and aerial photographs, are included in the Addenda. Kiley Company Page 39 Location Assessor's Parcel No. COE Date Acreage Sales Price Grantor/Grantee Doc No. SF Price Per SF Zoning Comments Larger Parcel 79440 Corporate Center Dr. N/App 3.10 N/App La Quinta, CA 92253 N/App 135,036 600-390-033 Land Sale No. 1 Highway 111 and Jefferson Street 4/4/2018 7.26 $2,200,000 Indio, CA 92201 0128785 316,246 $6.96 600-020-021, -022 Grantor: P6K Portfolio KDP Parcel I, LLC Grantee: Land Sale No. 2 1/11/2018 2.28 $1,909,000 Cathedral City, CA 92234 0013001 99,317 $19.22 687-510-043, -044, -045 Grantor: Brookfield Park Ventures, LLC Grantee: Land Sale No. 3 Harrison Street at 6th Street 7/28/2016 6.56 $3,400,000 Coachella, CA 92236 0319363 285,754 $11.90 778-080-006 Grantor: Grantee: Land Sale No. 4 47647 Washington Street 10/20/2017 1.12 $878,500 La Quinta, CA 92247 0436867 48,787 $18.01 643-200-032 Grantor: Grantee: The Title Art Center, a California non-profit corporation Land Sale No. 5 73500 Dinah Shore Drive 1/11/2018 6.12 $4,405,500 Palm Desert, CA 92211 0113938 266,587 $16.53 694-060-011, -012 Grantor: James Parkhouse, trustee Grantee: Carmax Auto Superstores California, LLC Land Sale No. 6 In Escrow 4.15 $3,495,000 Rancho Mirage, CA 92270 Not available 180,774 $19.33 682-010-022 Grantor: Grantee: Not available Current escrow of vacant site purchased to construct multi-tenant office/medical building; secondary location with average visibility and access. Proximity to Eisenhower Medical Center Not available Vacant commercially zoned lot located adjacent to the freeway purchased to construct an auto dealership, Entitled for auto-related uses at the time of sale. Midlbock lot on commercial arterial purchased to construct single-tenant, owner-user office building LAND SALES SUMMARY Hwy 111 location with good visibility; irregularly shaped lot. Buyer plans to construct a new retail center Subject larger parcel; currently improved with multi- tenant business park (office, industrial and medical users) Barclay Holdings XXXII, LLC Buyer plans to construct an office building on the site; secondary location with average visibility and access. Public records reflect a physical address of 51258 Cesar Chavez Street; however, this address reflects a separate location on maps and Google Earth and has not been relied on. CG, General Commercial CG, General Commercial Hwy 111 location with good visibility and access; within strong commercial area and retail/commercial uses nearby. Buyer plans to expand their existing car dealership. Shottenkirk California Properties MU-SP300 CP, Commercial Park Country Club Drive at John L. Sinn Road E. Palm Canyon Drive (Hwy 111), West of Perez Road Coachella Town Center, LLC (formerly known as Lunista, LLC) R.B. Johnson Investments, LLC CG, General Commercial SI, Commercial Kukbo esign Co, LTD. CG, General Commercial Kiley Company Page 40 Kiley Company Page 41 Larger ParcelLand Sale No. 1Land Sale No. 2Land Sale No. 3Land Sale No. 4 Land Sale No. 5Land Sale No. 6Location 79440 Corporate Center Dr.73500 Dinah Shore DriveCity, State La Quinta, CA 92253 Indio, CA 92201 Cathedral City, CA 92234 Coachella, CA 92236 La Quinta, CA 92247 Palm Desert, CA 92211Rancho Mirage, CA 92270Total Sale Price Price/SF $6.96 $19.22 $11.90 $18.01 $16.53 $19.33ADJUSTMENTSRights Conveyed Fee Simple 0.0% $0.00 Fee Simple 0.0% $0.00 Fee Simple 0.0% $0.00 Fee Simple 0.0% $0.00 Fee Simple 0.0% $0.00 Fee Simple 0.0% $0.00 Adjusted Price $6.96 $19.22 $11.90 $18.01 $16.53 $19.33Financing Terms Conv. 0.0% $0.00 Conv. 0.0% $0.00 Conv. 0.0% $0.00 All cash 0.0% $0.00 All cash 0.0% $0.00 N/Av0.0% $0.00 Adjusted Price $6.96 $19.22 $11.90 $18.01 $16.53 $19.33Conditions of Sale Below 20.0% $1.39 Assemblage 0.0% $0.00 None 0.0% $0.00 None 0.0% $0.00 None 0.0% $0.00 None 0.0% $0.00 Adjusted Price Market $8.35 $19.22 $11.90 $18.01 $16.53 $19.33Exp. After Purchase None 0.0% $0.00 None 0.0% $0.00 None 0.0% $0.00 None 0.0% $0.00 None 0.0% $0.00 None 0.0% $0.00 Adjusted Price $8.35 $19.22 $11.90 $18.01 $16.53 $19.33Recording Date Date of Value: 04/04/18 0.0% $0.00 01/11/18 0.0% $0.00 07/28/16 0.0% $0.00 10/20/17 0.0% $0.00 01/11/18 0.0% $0.00 In Escrow -5.0% -$0.97 Adjusted Price November 6, 2018 7 months $8.35 11 months $19.22 28 months $11.90 13 months $18.01 11 months$16.53$18.37Adjusted Sale Price $8.35 $19.22 $11.90 $18.01 $16.53 $18.37Site Area (Acres) 3.10 7.26 2.28 6.56 1.12 6.12 4.15Site Area (SF) 135,036 316,246 10.0% $0.83 99,317 0.0% $0.00 285,754 5.0% $0.59 48,787 -10.0% -$1.80 266,587 5.0% $0.83 180,774 0.0% $0.00Adjusted Sale Price $9.18 $19.22 $12.49 $16.21 $17.35 $18.37Location Average ZoningCommercial AccessAverageVisibilityBelow AverageShape/Topography Rectangular/LevelCondition As if VacantOverall Comparability* Differences may be due to roundingInferiorSimilarSimilarHighway 111 and Jefferson StreetE. Palm Canyon Drive (Hwy 111), West of Perez Road Harrison Street at 6th Street 47647 Washington StreetCountry Club Drive at John L. Sinn RoadVery Superior Superior Sl. Superior$878,500 $4,405,500SimilarVery SuperiorSl. SuperiorSuperiorSuperiorSimilarSimilarSimilarSuperior SimilarSimilarKiley Company$1,909,000$3,400,000$2,200,000SimilarVery Inferior Similar Similar SimilarSuperior Sl. Superior SuperiorVery Superior Inferior Page 42SimilarSl. InferiorSimilarSuperiorSuperiorSimilarSimilarSimilarSimilarSuperiorSimilarVery InferiorSimilar SimilarLAND SALES COMPARISON GRID 79440 Corporate Center Dr.La Quinta, CA 92253OWNERSHIP: James R. Paul and Sharon L. PaulVery Inferior$3,495,000 VALUE OF THE L ARGER PARCEL, Continued The land sales found were analyzed and reviewed for the following items of comparison: rights conveyed, financing terms, conditions of sale, expenditures after purchase, date of sale (market conditions), and physical characteristics of the property including: site area, location, zoning, access, visibility, shape/topography and condition. Transactional Considerations The comparable sales each conveyed the fee simple interest and no adjustments are applied for property rights conveyed. The comparable transactions were all-cash or purchased with cash-equivalent financing and no adjustments are applied for financing terms. There are no reported conditions of sale that influenced the selling prices, with the exception of Land Sale No. 1. The buyer reported he felt he got a good deal and the price was somewhat below market. An adjustment is made. No other adjustments are applied for conditions of sale. While Land Sale No. 2 was purchased as part of an assemblage project, the broker reported no special conditions of sale and no discounts. As such, no adjustment is indicated. There are no reported expenditures immediately after purchase that impacted the selling prices and no adjustments are applied for expenditures immediately after purchase. To evaluate any changes in market conditions, sale and listing data, along with brokers’ opinions and published market reports regarding the market, were analyzed. Local area brokers report limited demand and long listing times, but a stable trend in land prices in this submarket. While some of the transactions occurred within the past three years, the data indicates no measurable increase in trends over the exposure period within the subject’s specific submarket area and no adjustments for time are indicated. Typically in this market, final sales prices are slightly lower than asking prices. For Land Sale No. 6, the broker was unable to confirm the final sales price, as this property is still in escrow, but did report that the asking price was slightly higher than the final sales price. The listing price is used and an adjustment is indicated. Physical Considerations The comparables range in size from 1.12 acres to 7.26 acres, compared to the larger parcel site size of 3.10 acres. Smaller parcels tend to sell on a higher price per square foot basis, due to economies of scale and vice versa for larger parcels which tend to sell for less on a price per Kiley Company Page 43 square foot basis. Land Sale Nos. 1, 3 and 5 are larger and upward adjustments are indicated; Land Sale No. 4 is smaller and a downward adjustment is indicated. The location rating reflects differences in general and specific location. The majority of the comparable sales are located in areas considered generally similar to the larger parcel. Consideration is given locational adjustments based on the specific location of the comparable within the respective city and range from very inferior to very superior on the adjustment grid. The larger parcel is zoned for commercial uses; the comparables reflect similar zoning. No adjustments are indicated. The larger parcel has a corner location with only one access point from a secondary street which reflects overall average access. Land Sale Nos. 2, 3 and 6 reflect multiple access points and are considered superior. The larger parcel’s secondary location somewhat limits visibility, with approximately 205 feet of frontage on Dune Palms Road; the majority of the frontage is on Corporate Center Drive. Additionally, there is some topography with a portion of the eastern property line set below street grade on Dune Palms Road. Overall, visibility for the larger parcel is considered below average for commercial properties. Traffic counts along Dune Palms Road are also sub-standard for commercial properties. Visibility is considered similar for Land Sale No. 6; the remaining comparables reflect slightly superior to very superior visibility. The larger parcel has a rectangular shape and mostly level topography with the exception of the slight slope along the eastern property line. The topography did not limit the development and is not considered a detriment for the larger parcel. Land Sale No. 1 is irregularly shaped and considered inferior. The remaining comparables are considered similar. The larger parcel being appraised “as if vacant.” The comparables reflect vacant land sales; no adjustments are considered. Conclusion The adjusted land values range from $9.18 to $19.22 per square foot of land value. The table below summarizes the indicated range in values per square foot. Land Sale No. 1 is the most recent transactions and reflects the lowest price on a per square foot basis; it is located in close proximity to the larger parcel but is located to be in the city of Indio, which is considered inferior to the city of La Quinta. Additionally, the buyer Kiley Company Page 44 indicated that they got a “great deal” and would have expected a property value of over $10 per square foot. Land Sale No. 2 is located in a strong commercial location in the city of Cathedral City with direct frontage on Highway 111. It reflects the upper end of the range due to the specific location. Land Sale No. 6 is a pending escrow located in the city of Rancho Mirage. The comparable was listed for sale; the broker could only confirm a final purchase price slightly lower than what the asking price. The superior location would appear to reflect the upper end of the range. INDICATED VALUES PER SQUARE FOOT Comparable Overall Comparability Indicated Price/SF Land Sale No. 1 Very Inferior $9.18 Land Sale No. 3 Inferior $12.49 LARGER PARCEL ---- $15.00 Land Sale No. 4 Superior $16.21 Land Sale No. 5 Sl. Superior $17.35 Land Sale No. 6 Superior $18.37 Land Sale No. 2 Very Superior $19.22 Based on the preceding investigation and analysis, the fee simple fair market value of the land as of the effective date of this appraisal report is concluded to be $15.00 per square foot. Larger Parcel Land Value Larger Parcel - 3.10 Acres 135,036 SF x $15 PSF = $2,025,540 VALUE OF THE AREA TO BE ACQUIRED The larger parcel is impacted by a temporary construction easement; the value concluded as part of this appraisal report as is follows: Kiley Company Page 45 Temporary Construction Easement An exclusive 48-month temporary construction easement is proposed to allow for construction of the project as proposed. A review of the proposed easement to assess the degree of encumbrance on the property was completed in order to ascertain which rights the fee owner retains. The impact on value may be a function of the loss of utility, access and use rights to be transferred and the obligations of the parties during the construction period. Acquisition Estimated Duration Area Temporary Construction Easement 48 months 1,947 Square Feet The temporary construction easement is intended to allow the contractor onto the site to complete construction-related activities. The presence of the proposed temporary construction easement appears to restrict the normal use of the area and a ground rent equivalent to 100% of the market ground rental rate is indicated. In addition to the ground rent analysis completed as part of the compensation for the temporary construction easement, the possible temporary impacts associated with the project are also reviewed. The temporary construction easement valuation section will consider the three factors impacted by the temporary construction easement: the ground rent analysis, temporary construction easement compensation and temporary impacts analysis, as follows: Ground Rent Analysis Data to determine appropriate rates of return on land is limited. Ground lease rents are typically based on a percent of the land value. A survey of real estate owners and investors revealed they expect and utilize ground rent at rates of return at 6.00% to 10.00%. Brokers and developers interviewed report that annual ground rent is usually between 6.00% and 8.00% of the total land value. A search for residential ground lease data was made, but none were found. A survey of recent ground lease data reflects rental rates ranging from 6.30% to 8.20% of the land value, which is consistent with the verbal survey data. Realtyrates.com does not report the percentage return for ground rent payments, but does report capitalization and discount rates for land leases. Kiley Company Page 46 Ground Rent Survey Data Owners and Investors 6.00% - 10.00% Brokers and Developers 6.00% - 8.00% Market Data 6.30% - 8.20% Realtyrates.com (Land Leases) 7.18% and 8.08% The rent data reflects the return a property owner expects to earn on their asset. This rate is typically impacted by risk of payment default, division of expenses, lease length, rental rate escalations during the lease term and inflation risk. Considering the range of rates from the market data, the current low interest rate environment, and low risk of the advance bulk payment, a market rental rate of 8.0% of the land value is concluded. Temporary Construction Easement Compensation During the easement duration, the property owner will still be responsible for payment of any applicable property taxes; an amount of 1.0% of the land value is added. Compensation for the temporary workspace is estimated using a 9.0% annual return (8.0% for the ground rent and 1.0% for the property taxes) on the base value of the land at $15.00 per square foot. Temporary Construction Easement Compensation TCE Area Base Land Value (1,947 SF x $15.00/SF) $29,205 9% Annual Return on Land Value $2,628 Monthly Ground Rent on Land Value $219 Estimated Compensation for TCE for 48 Months $10,514 *Minor differences may be due to rounding Information provided by the client indicates that any site improvements physically located within the temporary construction easement area, which are impacted by the project as proposed, will be protected in place or replaced in kind as part of the project. No compensation for the temporary construction easement improvements is indicated. Kiley Company Page 47 Temporary Impacts The project as proposed indicates that the majority of the work is to be done from the street and will be contained within the temporary construction easement area; no temporary impacts are indicated. The existing landscaping will be protected in place (where applicable) or replaced as part of the project. Conclusion - Temporar y Construction Easement Based on a review of the proposed project, the elements of compensation are provided for the area and timing associated with the temporary construction easement. Compensation for these elements is shown below. TEMPORARY CONSTRUCTION EASEMENT ACQUISITION AND IMPACTS Temporary Construction Easement Compensation $10,514 Improvements (Replaced in Kind/Protected in Place) --- Temporary Impacts $0 TOTAL COMPENSATION FOR TCE RIGHTS $10,514 DAMAGES An analysis of the property remaining after the proposed project indicates no loss in the basic land value of the larger parcel as a result of the project in the manner proposed. No damages are indicated. DAMAGES Value of the Remainder as Part of the Whole $2,025,540 Value of the Remainder After Acquisition $2,025,540 TOTAL DAMAGES $0 BENEFITS Pursuant to Section 1263.430 of the State of California Code of Civil Procedure, benefits to the remainder is defined as “the benefits, if any, caused by the construction and use of the Kiley Company Page 48 project for which the property is taken in the manner proposed by the plaintiff whether or not the benefit is caused by a portion of the project located on the part taken.” The possibility of benefits to the property due to the proposed project was investigated. Qualitative benefits to the general community in the “after” condition include the upgrading of street improvements as well as increased roadway capacity. Benefits only serve to offset damages. There are no damages due to the proposed acquisition. APPRAISAL CONCLUSION The conclusion of compensation as a result of the proposed project, as of the effective date of this appraisal report, is as follows. Property Rights Value Opinion Compensation VALUE OF THE LARGER PARCEL "AS IF VACANT" (Land Only)$2,025,540 Permanent Acquisition(s) Not Applicable $0 TOTAL PERMANENT ACQUISITIONS $0 Damages Value of Remainder as Part of the Whole $2,025,540 Value of the Remainder After Acquisition $2,025,540 TOTAL DAMAGES $0 $0 Benefits $0 TOTAL BENEFITS $0 TOTAL PROPERTY RIGHTS COMPENSATION $0 Temporary Acquisition Temporary Construction Easement - 1,947 Square Feet $10,514 Improvements in TCE Area - Replaced in Kind $0 Temporary Impacts $0 TOTAL COMPENSATION FOR TCE RIGHTS $10,514 TOTAL COMPENSATION $10,514 ROUNDED $10,600 * Minor differences due to rounding APPRAISAL CONCLUSION Kiley Company Page 49 CERTIFICATION We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. We have performed no services, as appraisers or in any other capacity, regarding the property that is the subject of this report within the past three-year period immediately preceding acceptance of this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved in this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation is not contingent on the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 9. Meredith McDonald has made an inspection of the property that is the subject of this report. Elizabeth M. Kiley has not made an inspection of the subject property, but has fully participated in the analyses, opinions and conclusions concerning real estate contained in this report and fully concurs with the conclusions expressed herein. 10. No one provided real property appraisal assistance to the persons signing this certification. 11. The reported analyses, opinions and conclusions were developed, and this report has been prepared in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 13. As of the date of this report, Elizabeth M. Kiley has completed the continuing education program for Designated Members of the Appraisal Institute. Elizabeth M. Kiley, MAI, AI-GRS Certified General Real Estate Appraiser Certificate No. AG005391 Expiration Date: April 13, 2020 Meredith McDonald Certified General Real Estate Appraiser Certificate No. AG043409 Expiration Date: December 13, 2019 Kiley Company Page 50 ELIZABETH M. KILEY, MAI, AI-GRS STATEMENT OF QUALIFICATIONS EMPLOYMENT Appraiser/Consultant/President, 1990 to Present Elizabeth M. Kiley, Inc., DBA Kiley Company, Irvine, CA Assistant Vice President/Senior Appraiser, 1984 to 1989 Interstate Appraisal Corporation, Newport Beach, CA Chief Appraiser/Commercial Underwriter, 1982, 1983 to 1984 Cambridge Capital Group, Santa Ana, CA Appraiser, 1982 to 1983 Harold Davidson & Associates, Los Angeles, CA Senior Appraiser, 1979 to 1981 Bank of America NT & SA, Riverside/San Bernardino District, CA EDUCATION Bachelor of Science, Business Administration, 1974 San Diego State University, San Diego, CA Appraisal Institute Courses Appraisal Principles; Appraisal Procedures; Income Capitalization; Advanced Income Capitalization; Standards of Professional Practice A, B & C; Report Writing and Valuation Analysis; Litigation Valuation; Case Studies in Real Estate Valuation; USPAP Professional Seminars 2011 Estate Tax Changes; Update on Climate Change Regulations Affecting Local Governments; Litigation Valuation; Condemnation-Partial Takes and Super Funds Sites; Property Acquisition, Appraisal, and Relocation in an Upside Down Market; Appraising in a Declining or Changing Market; Appraising Apartments; Leasehold Valuation; Easement Valuation; Appraising in the New Regulatory Climate; Feasibility Analysis and Highest and Best Use; Faculty Training Seminar; Federal and State Law and Regulation Workshop; Service Station; Restaurant Seminar; OCTA Partial Take Appraisal Workshop; Moderator E-commerce Panel, 2000 Summer Conference EXPERIENCE Commercial High-rise, mid-rise and garden offices; community and neighborhood shopping centers; single tenant NNN properties; convenience stores; restaurants and fast-food stores; auto dealerships; service stations; bank branches; special-use properties; valuation of fee simple, leased fee, and leasehold interests Industrial Existing and proposed multi-tenant industrial parks; single-tenant buildings; research and development buildings; and self-storage facilities Kiley Company Page 51 ELIZABETH M. KILEY, MAI (Continued) Residential Apartments; proposed subdivisions; condominium complexes; apartment conversions and CBD lofts; mass appraisal for acquisitions Vacant Land Planned community developments; business parks; industrial subdivisions; commercial sites; agricultural land; desert land; and Indian Trust property Litigation Whole and partial take condemnation appraisals; redevelopment agency analyses; ground lease negotiations; bankruptcy appraisals; foreclosures; partnership valuations; estate tax valuations; and contaminated properties Public Agency Railway corridors; transmission line easements, easement upgrades, and electrical substations; open space valuations; water tank sites; libraries; fire stations; correctional institutions; freeway widenings; railroad grade separations QUALIFICATIONS MAI Designation No. 8339, Appraisal Institute Certified General Real Estate Appraiser, Certificate No. AG005391, State of California Expert Witness, Superior Court of California, Los Angeles and Riverside Districts Expert Witness, U. S. District Court, Los Angeles Expert Witness, U. S. Bankruptcy Court, Central District, Los Angeles and Orange Counties Qualified Instructor, Appraisal Principles Course, Appraisal Institute Qualified Instructor, Legal Consideration in Appraisal, Cal State Fullerton AFFILIATIONS Appraisal Institute Elected Regional Representative, 2011; Public Relations Chair, 2003; Moderator for Summer Program, 2000; Executive Committee Member, 1995 to 1996; Member National Public Relations Committee, 1994 to 1996; Assistant Secretary, 1994; Public Relations Chair, 1993; Representative, Regional Committee, 1992 to 1996; Program Chairperson, Orange County, 1991; Co-chair, Highest and Best Use Seminar, 1991; Co-chair, Easement Valuation Seminar, 1990 Commercial Real Estate Women (CREW - Orange County) Regional Conference Chair, 1998; First Vice President, 1997; Second Vice President, 1995; Marketing Publications Chair, 1994 to 1996; Network Lunch Program Chair, 1993; Chapter President, 1991; Membership Chair, 1990; Program Chair, 1990 International Right-of-Way Association Public Agency Liaison, 2010 Member, Board of Directors 2009 and 2010 Presenter for 2010 Spring Seminar - How Energy is Changing Land Use and Values Kiley Company Page 52 MEREDITH A. MCDONALD STATEMENT OF QUALIFICATIONS Appraiser/Consultant, 2016 to Present Elizabeth M. Kiley, Inc., DBA Kiley Company, Irvine, CA Senior Valuation Analyst, 2014 to 2015 Overland, Pacific and Cutler, Irvine, CA Appraiser/Consultant, 2003 to 2014 Elizabeth M. Kiley, Inc., DBA Kiley Company, Tustin, CA Construction Management Administrator, 2001 to 2003 PGP Partners, Inc., Lake Forest, CA Lease Administrator/Property Manager, 2000 PM Realty Group, LP, Newport Beach, CA Assistant Property Manager, 1998 to 2000 Puente Hills Regional Mall The Krausz Companies, Inc., City of Industry, CA EDUCATION Fullerton College, Fullerton, CA Appraisal Institute Courses Basic Appraisal Principles, National 15-Hour USPAP Course, Demonstration Appraisal Report Writing Course, Condemnation Appraising: Principles and Applications Allied Business School Courses Intermediate Real Estate Appraisal Course, Fundamentals of Real Estate Appraisal Course, Real Estate Principles, Real Estate Practices APPRAISAL EXPERIENCE Commercial Single and multi-tenant offices; single-tenant triple-net, retail properties; multi-tenant retail properties (shopping centers, strip retail centers); convenience stores; special use properties; fee simple and leased fees; regional and super-regional shopping centers and malls; banks; fast-food restaurants Industrial Existing and proposed single and multi-tenant buildings; research and development buildings; multi-tenant industrial parks Kiley Company Page 53 MEREDITH A. McDONALD (Continued) Residential Proposed subdivisions; condominium complexes; apartments Vacant Land Planned community developments; commercial sites; residential sites; agricultural land Public Agency Open space valuations; libraries; fire stations; right-of-way and eminent domain; freeway and street widening; grade separations; full and partial acquisitions; easement valuations, public utility easements and temporary construction easements; cut and face building valuations; damages and special benefits analysis; before and after analysis; highest and best analysis for complex acquisitions GENERAL REAL ESTATE EXPERIENCE Lease negotiations including tenant correspondence and review of lease drafts provided by attorneys; construction management including obtaining construction bids, managing construction budgets and construction reconciliation; annual CAM reconciliations for regional mall including invoicing and collections of CAM charges, tracking monthly operating expenses and database maintenance of operating expenses. QUALIFICATIONS Certified General Real Estate Appraiser Certificate No. AG043409, State of California AFFILIATIONS International Right-of-Way Association (IRWA) Associate Member, Treasurer (2017-2018), Secretary (2018-2019) Membership Chair (2011 to 2014) and Nominations/Elections Chair (2015 to Present) Kiley Company Page 54 MARKET DATA Kiley Company Page 55 APN:600-020-021, -022 Document No.:0128785 Grantor:P6K Portfolio KDP Parcel I, LLC Grantee:Barclay Holdings XXXII, LLC Date of Sale:April 4, 2018 Site Area (SF):316,246 Recording Date:April 4, 2018 Shape:Irregular Down Payment:$550,000 (25%)Intended Use:Retail Center Financing:Conv.Present Use:Vacant Land Sale Price:$2,200,000 Highest & Best Use:Commercial Sale Price PSF (Land):$6.96 Zoning:MU-SP300 Comments: Inspection Date:December 15, 2018 By: Meredith McDonald Source:Costar Verification:Scott Archer (buyer's representative); public records, recorded grant deed LAND SALE NO. 1 Highway 111 and Jefferson Street Indio, CA 92201 Hwy 111 location with good visibility; irregularly shaped lot. Buyer plans to construct a new retail center APN:687-510-043, -044, -045 Document No.:0013001 Grantor:Brookfield Park Ventures, LLC Grantee: Date of Sale:January 8, 2018 Site Area (SF):99,317 Recording Date:January 11, 2018 Shape:Mostly square Down Payment:$49,000 (3%)Intended Use:Commercial/Retail Financing:Conv.Present Use:Vacant lot Sale Price: $1,909,000 Highest & Best Use:Commercial/Retail Sale Price PSF (Land):$19.22 Zoning:CG, General Commercial Comments: Inspection Date:December 15, 2018 By:Meredith McDonald Source:Costar Verification:Steve Lyle (broker); public records, recorded grant deed Hwy 111 location with good visibility and access; within strong commercial area and retail/commercial uses nearby. Buyer plans to expand their existing car dealership. LAND SALE NO. 2 E. Palm Canyon Drive (Hwy 111), West of Perez Road Cathedral City, CA 92234 Shottenkirk California Properties APN:778-080-006 Document No.:0319363 Grantor:Coachella Town Center, LLC (formerly known as Lunista, LLC) Grantee:R.B. Johnson Investments, LLC Date of Sale:July 28, 2016 Site Area (SF):285,754 Recording Date:July 28, 2016 Shape:Irregular Down Payment:N/Av Intended Use:Commercial/Retail Financing:Conv.Present Use:Vacant Land Sale Price:$3,400,000 Highest & Best Use:Commercial/Retail Sale Price PSF (Land):$11.90 Zoning:CG, General Commercial Comments: Inspection Date:December 15, 2018 By: Meredith McDonald Source:Costar Verification:Noel Ramos (broker); public records, recorded grant deed LAND SALE NO. 3 Harrison Street at 6th Street Coachella, CA 92236 Buyer plans to construct an office building on the site; secondary location with average visibility and access. Public records reflect a physical address of 51258 Cesar Chavez Street; however, this address reflects a separate location on maps and Google Earth and has not been relied on. APN:643-200-032 Document No.:0436867 Grantor: Grantee:The Title Art Center, a California non-profit corporation Date of Sale:August 24, 2017 Site Area (SF):48,787 Recording Date:October 20, 2017 Shape:Rectangular Down Payment:N/Av.Intended Use:Commercial/Office Financing:All cash Present Use:Vacant Sale Price:$878,500 Highest & Best Use:Commercial/Office Sale Price PSF (Land):$18.01 Zoning:CG, General Commercial Comments: Inspection Date:December 15, 2018 By: Meredith McDonald Source:CoStar Verification:Curtis Barlow (broker); public records, recorded grant deed LAND SALE NO. 4 47647 Washington Street La Quinta, CA 92247 Kukbo esign Co, LTD. Midlbock lot on commercial arterial purchased to construct single-tenant, owner-user office building APN:694-060-011, -012 Document No.:0113938 Grantor:James Parkhouse, trustee Grantee:Carmax Auto Superstores California, LLC Date of Sale:December 26, 2017 Site Area (SF):266,587 Recording Date:January 11, 2018 Shape:Rectangular Down Payment:N/Av Intended Use:Auto Dealership Financing:All cash Present Use:Vacant Sale Price:$4,405,500 Highest & Best Use:Auto Dealership Sale Price PSF:$16.53 Zoning:SI, Commercial Comments: Inspection Date:December 15, 2018 By:Meredith McDonald Source:CoStar Verification:Marc Kleiman (broker); public records, recorded grant deed LAND SALE NO. 5 73500 Dinah Shore Drive Palm Desert, CA 92211 Vacant commercially zoned lot located adjacent to the freeway purchased to construct an auto dealership, Entitled for auto-related uses at the time of sale. APN:682-010-022 Document No.:Not available Grantor:Not available Grantee:Not available Date of Sale:Pending Site Area (SF):180,774 Recording Date:In Escrow Shape:Rectangular Down Payment:Unknown Intended Use:Commercial/Office Financing:N/Av Present Use:Vacant Land Sale Price:$3,495,000 Highest & Best Use:Commercial/Office Sale Price PSF (Land):$19.33 Zoning:CG, General Commercial Comments: Inspection Date:December 15, 2018 By: Meredith McDonald Source:Costar Verification:Ronald S. Kassan (broker); public records, marketing brochure LAND SALE NO. 6 Country Club Drive at John L. Sinn Road Rancho Mirage, CA 92270 Current escrow of vacant site purchased to construct multi-tenant office/medical building; secondary location with average visibility and access. Proximity to Eisenhower Medical Center ADDENDA Page 56 DEFINITIONS Benefits 1 In eminent domain valuation, the advantageous factors that arise from a public improvement for which private property has been taken. The law in some jurisdictions makes a distinction between general benefits and special benefits because only special benefits are considered in determining the value of the remainder in a partial acquisition. The distinction between special benefits and general benefits is both a factual and a legal question, so appraisers may need to consult legal counsel to resolve questions about the classification of benefits. Comparable Sales When relevant to the determination of the value of property, a witness may take into account as a basis for his opinion the price and other terms and circumstances of any sale or contract to sell and purchase comparable property if the sale or contract was freely made in good faith within a reasonable time before or after the date of valuation. In order to be considered comparable, the sale or contract must have been made sufficiently near in time to the date of valuation, and the property sold must be located sufficiently near the property being valued and must be sufficiently alike in respect to character, size, situation usability, and improvements, to make it clear that the property sold and the property being valued are comparable in value and that the price realized for the property sold may fairly be considered as shedding light on the value of the property being valued. (State of California Evidence Code; Section 816) Damages 1 In condemnation, the loss in value to the remainder in a partial taking of property. Generally, the difference between the value of the whole property before the taking and the value of the remainder after the taking is the measure of the value of the part taken and the damages to the remainder. Note that different regions of the country and different courts may use terms such as consequential damages and severance damages differently. Easement 1 The right to use another’s land for a stated purpose. Fair Market Value Fair market value is defined by Section 1263.320 of the State of California Code of Civil Procedure 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. Fee Simple Estate (Fee) 1 Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police powers and escheat. Highest and Best Use 1 1.The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 2.The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3.The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) Highest and Best Use 2 The reasonably probable use of property that results in the highest value. Improvements Pertaining to Realty (a ) As used in this article, “improvements pertaining to the realty” include any machinery or equipment installed for use on property taken by eminent domain, or on the remainder if such property is part of a larger parcel, that cannot be removed without a substantial economic loss or without substantial damage to the property on which it is installed, regardless of the method of installation. (b) In determining whether particular property can be removed “without a substantial economic loss” within the meaning of this section, the value of property in place considered as a part of the realty should be compared with its value it if were removed and sold. (Section 1263.205 of the State of California Code of Civil Procedure) Just Compensation 1 In condemnation, the amount of loss for which a property owner is compensated when his or her property is taken. Just compensation should put the owner in as good a position pecuniarily as he or she would be if the property had not been taken. Larger Parcel 1 In governmental land acquisitions and in valuation of charitable donations of partial interests in property such as easements, the tract or tracts of land that are under the beneficial control of a single individual or entity and have the same, or an integrated, highest and best use. 1. Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015) 2. Source: Appraisal Institute, The Appraisal of Real Estate, 14th Ed. (Chicago: Appraisal Institute, 2013) Elements for consideration by the appraiser in making a determination in this regard are contiguity, or proximity, as it bears on the highest and best use of the property, unity of ownership, and unity of highest and best use. In most states, unity of ownership, contiguity, and unity of use are the three conditions that establish the larger parcel for the consideration of severance damages. In federal and some state cases, however, contiguity is sometimes subordinated to unitary use. Personal Information The term “personal information” means any information that is maintained by an agency that identifies or describes an individual, including, but not limited to, his or her name, social security number, physical description, home address, home telephone number, education, financial matters and medical or employment history. It includes statements made by, or attributed to, the individual (Section 1798.3 of the State of California Code of Civil Procedure) Project Influence The fair market value of the property taken shall not include any increase or decrease in the value of the property that is attributable to any of the following: (a) The project for which the property is taken; (b) The eminent domain proceeding in which the property is taken; (c) Any preliminary actions of the plaintiff relating to the taking of the property. (Section 1263.330 of the State of California Code of Civil Procedure) Remainder 1 In condemnation, that portion of a larger parcel remaining in the ownership of the property owner after a partial taking. Temporary Easement 1 An easement granted for a specific purpose and applicable for a specific time period. Unit Rule, or Individual Fee Rule 1 In condemnation appraisal, a valuation rule with two aspects, the first dealing with ownership interests and the second dealing with physical components. The first aspect of the rule, also referred to as the undivided fee rule, requires that property be valued as a whole rather than by the sum of the values of the various interests into which it may have been carved (such as lessor and lessee, life tenant and remainderman, and mortgagor and mortgagee, etc.). This is an application of the principle that it is the property, not the interests, that is being acquired. The second aspect of the rule is that different physic al elements or components of a tract of land (such as the value of timber and the value of minerals on the same land) are not to be separately valued and added together. LiveLOOK Lawyers Title - Inland Empire 3480 Vine Street, Suite 300 Riverside, CA 92507 Phone: 951.774.0825 Preliminary Title Report Overland, Pacific & Cutler, Inc. 2280 Market Street #200 Riverside, CA 92501 Attn: John Cutler Title Officer: Barbara Northrup--So Email: TU65@LTIC.COM Phone No.: (951) 248-0669 File No.: 618650306 Your Reference No: BEN-002 Property Address: 79440 Corporate Centre Drive, La Quinta, California Introducing LiveLOOK title document delivery system is designed to provide 24/7 real-time access to all information related to a title insurance transaction. Access preliminary reports, exception documents, an easy-to-use summary page, and more, at your fingertips and your convenience. To view your new Lawyers Title LiveLOOK report, Click Here Effortless, Efficient, Compliant, and Accessible Lawyers Title Company 3480 Vine Street Suite 300 Riverside, CA 92507 Phone: (951) 774-0825 Fax: ( ) CLTA Preliminary Report Form – Modified (11-17-06) Page 1 Overland, Pacific & Cutler, Inc. Title Officer: Barbara Northrup--So 2280 Market Street #200 email: TU65@LTIC.COM Riverside, CA 92501 Phone No.: (951) 248-0669 Fax No.: Attn: John Cutler File No.: 618650306 Your Reference No: BEN-002 Property Address: 79440 Corporate Centre Drive, City of La Quinta, California PRELIMINARY REPORT Dated as of June 19, 2018 at 7:30 a.m. In response to the application for a policy of title insurance referenced herein, Lawyers Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitation on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. The policy(s) of title insurance to be issued hereunder will be policy(s) of Commonwealth Land Title Insurance Company. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 2 SCHEDULE A The form of policy of title insurance contemplated by this report is: A Preliminary Report Only The estate or interest in the land hereinafter described or referred to covered by this report is: A FEE Title to said estate or interest at the date hereof is vested in: James R. Paul and Sharon L. Paul, husband and wife as joint tenants The land referred to herein is situated in the County of Riverside, State of California, and is described as follows: SEE EXHIBIT “A” ATTACHED HERETO AND MADE A PART HEREOF File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 3 EXHIBIT “A” All that certain real property situated in the County of Riverside, State of California, described as follows: Parcel 1 of Parcel Map No. 36836, in the City of La Quinta, County of Riverside, State of California, as per map recorded in Book 244, Pages 1, 2, and 3 of Parcel Maps, in the Office of the County Recorder of said County. APN: 600-390-21 and 22, Now APN: 600-390-33 File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 4 SCHEDULE B At the date hereof Exceptions to coverage in addition to the printed exceptions and exclusions in said policy form would be as follows: A. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2018-2019. B. Any liens or other assessments, bonds, or special district liens including without limitation, Community Facility Districts, that arise by reason of any local, City, Municipal or County Project or Special District. C. The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Chapter 3.5 (commencing with Section 75) or Part 2, Chapter 3, Articles 3 and 4, respectively, of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A; or as a result of changes in ownership or new construction occurring prior to date of policy. 1. Water rights, claims or title to water, whether or not disclosed by the public records. 2. Reservations, exceptions and provisions contained in the patent from the United States of America, and in the acts authorizing the issuance thereof. Recording Date: July 31, 1905 Recording No: Book 3, Page 228 of Official Records 3. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: County of Riverside Purpose: highway Recording Date: May 24, 1933 Recording No: Book 122, Page 374 of Official Records Affects: Said land more particularly described therein 4. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: State of California Purpose: highway slopes Recording Date: December 11, 1967 Recording No: 108641 of Official Records Affects: Said land more particularly described therein 5. Commercial Domestic Water and/or Sanitation Installation Agreement Recording Date: June 19, 2000 Recording No.: 2000-233566 of Official Records 6. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: City of La Quinta, a California Municipal Corporation Purpose: perpetual easement and right of way for public street and public utility Recording Date: July 11, 2000 Recording No: 2000-267425 of Official Records Affects: Said land more particularly described therein File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 5 7. Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, source of income, gender, gender identity, gender expression, medical condition or genetic information, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document Recording Date: November 21, 2000 Recording No: 2000-466111 of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 8. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: City of La Quinta, a California Municipal Corporation Purpose: Public utilities Recording Date: December 8, 2000 Recording No: 2000-489356 of Official Records Affects: Said land more particularly described therein 9. Vehicular access rights to Corporate Centre Drive have been dedicated on the Tentative Parcel Map 27896, except at street intersections and one 35 foot access opening, as disclosed by Certification of Compliance recorded November 17, 2000, as Instrument No. 2000-0460294 of Official Records. 10. The Land described herein is included within a project area of the Redevelopment Agency shown below, and that proceedings for the redevelopment of said project have been instituted under the Redevelopment Law (such redevelopment to proceed only after the adoption of the Redevelopment Plan) as disclosed by a document. Redevelopment Agency: The La Quinta Redevelopment Agency Recording Date: October 4, 2007 Recording No: 2007-0619749 of Official Records 11. A deed of trust to secure an indebtedness in the amount shown below, Amount: $6,640,000.00 Dated: June 11, 2012 Trustor/Grantor: James R. Paul (“James R. Paul”) and Sharon Lee Paul (“Sharon Lee Paul”) (James R. Paul and Sharon Lee Paul, who also acquired title as Sharon L. Paul, husband and wife Trustee: Rabobank, N.A., a national banking association Beneficiary: Rabobank, N.A., a national banking association Loan No.: 351075-01 Recording Date: June 18, 2012 Recording No: 2012-0279660 of Official Records Affects: The herein described Land and other land. File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 6 12. A deed of trust to secure an indebtedness in the amount shown below, Amount: $5,820,000.00 Dated: July 10, 2017 Trustor/Grantor: James R. Paul and Sharon L. Paul Trustee: Rabobank, N.A., a national banking association Beneficiary: Rabobank, N.A., a national banking association Loan No.: 351075-3 Recording Date: July 19, 2017 Recording No: 2017-0294454 of Official Records 13. The ownership of said Land does not include rights of vehicular access to the street or highway hereinafter mentioned, except at specified points, said rights have been relinquished by the dedication provisions shown on the map of the tract referred to below: Street or Highway: Corporate Centre Drive and Dune Palms Road Parcel No.: 36836 in Book 244, Pages 1, 2 and 3 of Parcel Maps Access Points: As shown on said Map 14. Matters contained in the dedication statement or elsewhere on the tract or parcel map shown below, which among the things provide: Tract/Parcel Map: Parcel Map No. 36836 in Book 244, Pages 1, 2 and 3 of Parcel Maps Provisions: For condominium purposes Reference is made to said map for full particulars. 15. Matters which may be disclosed by an inspection and/or by a correct ALTA/ACSM Land Title Survey of said Land that is satisfactory to the Company, and/or by inquiry of the parties in possession thereof. 16. Any rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the public records. The Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of title insurance without excepting this item from coverage. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. 17. Any easements not disclosed by the public records as to matters affecting title to real property, whether or not said easements are visible and apparent. 18. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other matters which a correct survey would disclose and which are not shown by the public records. END OF SCHEDULE B EXCEPTIONS PLEASE REFER TO THE “NOTES AND REQUIREMENTS SECTION” WHICH FOLLOWS FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 7 REQUIREMENTS SECTION: Req. No. 1: In order to complete this report, the Company requires a Statement of Information to be completed by the following party(s), Party(s): All parties The Company reserves the right to add additional items or make further requirements after review of the requested Statement of Information. NOTE: The Statement of Information is necessary to complete the search and examination of title under this order. Any title search includes matters that are indexed by name only, and having a completed Statement of Information assists the Company in the elimination of certain matters which appear to involve the parties but in fact affect another party with the same or similar name. Be assured that the Statement of Information is essential and will be kept strictly confidential to this file. File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 8 INFORMATIONAL NOTES SECTION The information on the attached plat is provided for your convenience as a guide to the general Note No. 1: location of the subject property. The accuracy of this plat is not guaranteed, nor is it a part of any policy, report or guarantee to which it may be attached. California insurance code section 12413.1 regulates the disbursement of escrow and sub-escrow funds Note No. 2: by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds deposited with the company by wire transfer may be disbursed upon receipt. Funds deposited with the company via cashier’s check or teller's check drawn on a California based bank may be disbursed on the next business day after the day of deposit. If funds are deposited with the company by other methods, recording and/or disbursement may be delayed. All escrow and sub-escrow funds received by the company will be deposited with other escrow funds in one or more non-interest bearing escrow accounts of the company in a financial institution selected by the company. The company may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with such financial institution, and the company shall have no obligation to account to the depositing party in any manner for the value of, or to pay to such party, any benefit received by the company. Those benefits may include, without limitation, credits allowed by such financial institution on loans to the company or its parent company and earnings on investments made with the proceeds of such loans, accounting, reporting and other services and products of such financial institution. Such benefits shall be deemed additional compensation of the company for its services in connection with the escrow or sub-escrow. For wiring Instructions please contact your Title Officer or Title Company Escrow officer. Lawyers Title is a division of Commonwealth Land Title Insurance Company. The insurer in policies of Note No. 3: title insurance, when issued in this transaction, will be Commonwealth Land Title Insurance Company. Notice: Please be aware that due to the conflict between federal and state laws concerning the Note No. 4: cultivation distribution, manufacture or sale of marijuana, the Company is not able to close or insure any transaction involving Land that is associated with these activities. Pursuant to Government Code Section 27388.1, as amended and effective as of 1-1-2018, a Note No. 5: Documentary Transfer Tax (DTT) Affidavit may be required to be completed and submitted with each document when DTT is being paid or when an exemption is being claimed from paying the tax. If a governmental agency is a party to the document, the form will not be required. DDT Affidavits may be available at a Tax Assessor-County Clerk-Recorder. None of the items shown in this report will cause the Company to decline to attach CLTA Endorsement Note No. 6: Form 100 to an ALTA Loan Policy, when issued. The following information will be included in the CLTA Form 116 or ALTA Form 22-06 Endorsement to Note No. 7: be issued pursuant to this order: There is located on said Land: commercial/industrial property Known as: 79440 Corporate Centre Drive, City of La Quinta, California There are no conveyances affecting said Land recorded within 24 months of the date of this report. Note No. 8: File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 9 The Company requires current beneficiary demands prior to closing. If the demand is expired and a Note No. 9: current demand cannot be obtained, our requirements will be as follows: a) If the Company accepts a verbal update on the demand, we may hold an amount equal to one monthly mortgage payment. This hold will be in addition to the verbal hold the lender may have stipulated. b) If the Company cannot obtain a verbal update on the demand, we will either pay off the expired demand or wait for the amended demand, at our discretion. c) All payoff figures are verified at closing. If the customer's last payment was made within 15 days of closing, our Payoff Department may hold one month's payment to insure the check has cleared the bank (unless a copy of the cancelled check is provided, in which case there will be no hold). Property taxes, including any personal property taxes and any assessments collected with taxes, are Note No. 10: paid. For proration purposes the amounts were: Tax Identification No.: 600-390-021-1 Fiscal Year: 2017-2018 1st Installment: $18,764.83 2nd Installment: $18,764.83 Exemption: $-0- Code Area: 020-026 Property taxes, including any personal property taxes and any assessments collected with taxes, are Note No. 11: paid. For proration purposes the amounts were: Tax Identification No.: 600-390-022-2 Fiscal Year: 2017-2018 1st Installment: $11,709.34 2nd Installment: $11,709.34 Exemption: $-0- Code Area: 020-026 Processor: slc Date Typed: June 26, 2018 File No: 618650306 Attachment One (Revised 05-06-16) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY – 1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 11 EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the public records. CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning: a. building; b. zoning; c. land use; d. improvements on the Land; e. land division; and f. environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5. Failure to pay value for Your Title. 6. Lack of a right: File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 12 a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. 7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors’ rights laws. 8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows: · For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 $ 10,000.00 (whichever is less) Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 $ 25,000.00 (whichever is less) Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 $ 25,000.00 (whichever is less) Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 $ 5,000.00 (whichever is less) 2006 ALTA LOAN POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 13 (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13 or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE [Except as provided in Schedule B - Part II,[ t[or T]his policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees or expenses, that arise by reason of: [PART I [The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. ] PART II File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 14 In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:] 2006 ALTA OWNER’S POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees or expenses, that arise by reason of: [The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 15 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and that are not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. ] 7. [Variable exceptions such as taxes, easements, CC&R’s, etc. shown here.] ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY – ASSESSMENTS PRIORITY (04-02-15) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys’ fees or expenses which arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated. File No: 618650306 CLTA Preliminary Report Form – Modified (11-17-06) Page 16 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. 10. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 11. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. File No: 618650306 Lawyers Title Company 3480 Vine Street Suite 300 Riverside, CA 92507 Phone: (951) 774-0825 Fax: ( ) Order No. 618650306 Notice of Available Discounts Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer’s right to be charged the filed rate. As such, your transaction may not qualify for the below discounts. You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one-to-four family residential dwelling. FNF Underwritten Title Company FNF Underwriter LTC – Lawyers Title Company CLTIC – Commonwealth Land Title Insurance Co. Available Discounts DISASTER LOANS (CLTIC) The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within 24 months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be 50% of the appropriate title insurance rate. EMPLOYEE RATE (LTC and CLTIC) No charge shall be made to employees (including employees on approved retirement) of the Company or its underwritten, subsidiary or affiliated title companies for policies or escrow services in connection with financing, refinancing, sale or purchase of the employees' bona fide home property. Waiver of such charges is authorized only in connection with those costs which the employee would be obligated to pay, by established custom, as a party to the transaction. Notice of Available Discount Mod. 10/21/2011 Wire Fraud Alert This Notice is not intended to provide legal or professional advice. If you have any questions, please consult with a lawyer. All parties to a real estate transaction are targets for wire fraud and many have lost hundreds of thousands of dollars because they simply relied on the wire instructions received via email, without further verification. If funds are to be wired in conjunction with this real estate transaction, we strongly recommend verbal verification of wire instructions through a known, trusted phone number prior to sending funds. In addition, the following non‐exclusive self‐protection strategies are recommended to minimize exposure to possible wire fraud. · NEVER RELY on emails purporting to change wire instructions. Parties to a transaction rarely change wire instructions in the course of a transaction. · ALWAYS VERIFY wire instructions, specifically the ABA routing number and account number, by calling the party who sent the instructions to you. DO NOT use the phone number provided in the email containing the instructions, use phone numbers you have called before or can otherwise verify. Obtain the phone number of relevant parties to the transaction as soon as an escrow account is opened. DO NOT send an email to verify as the email address may be incorrect or the email may be intercepted by the fraudster. · USE COMPLEX EMAIL PASSWORDS that employ a combination of mixed case, numbers, and symbols. Make your passwords greater than eight (8) characters. Also, change your password often and do NOT reuse the same password for other online accounts. · USE MULTI-FACTOR AUTHENTICATION for email accounts. Your email provider or IT staff may have specific instructions on how to implement this feature. For more information on wire‐fraud scams or to report an incident, please refer to the following links: Federal Bureau of Investigation: Internet Crime Complaint Center: http://www.fbi.gov http://www.ic3.gov FIDELITY NATIONAL FINANCIAL PRIVACY NOTICE Fidelity National Financial, Inc. and its majority-owned subsidiary companies (collectively, “FNF,” “our,” or “we”) respect and are committed to protecting your privacy. This Privacy Notice explains how we collect, use, and protect personal information, when and to whom we disclose such information, and the choices you have about the use and disclosure of that information. Types of Information Collected We may collect two types of information from you: Personal Information and Browsing Information. Personal Information. FNF may collect the following categories of Personal Information: • contact information (e.g., name, address, phone number, email address); • demographic information (e.g., date of birth, gender, marital status); • identity information (e.g. Social Security Number, driver’s license, passport, or other government ID number); • financial account information (e.g. loan or bank account information); and • other personal information necessary to provide products or services to you. Browsing Information. FNF may automatically collect the following types of Browsing Information when you access an FNF website, online service, or application (each an “FNF Website”) from your Internet browser, computer, and/or mobile device: • Internet Protocol (IP) address and operating system; • browser version, language, and type; • domain name system requests; and • browsing history on the FNF Website, such as date and time of your visit to the FNF Website and visits to the pages within the FNF Website. How Personal Information is Collected We may collect Personal Information about you from: • information we receive from you on applications or other forms; • information about your transactions with FNF, our affiliates, or others; and • information we receive from consumer reporting agencies and/or governmental entities, either directly from these entities or through others. How Browsing Information is Collected If you visit or use an FNF Website, Browsing Information may be collected during your visit. Like most websites, our servers automatically log each visitor to the FNF Website and may collect the Browsing Information described above. We use Browsing Information for system administration, troubleshooting, fraud investigation, and to improve our websites. Browsing Information generally does not reveal anything personal about you, though if you have created a user account for an FNF Website and are logged into that account, the FNF Website may be able to link certain browsing activity to your user account. Other Online Specifics Cookies. When you visit an FNF Website, a “cookie” may be sent to your computer. A cookie is a small piece of data that is sent to your Internet browser from a web server and stored on your computer’s hard drive. Information gathered using cookies helps us improve your user experience. For example, a cookie can help the website load properly or can customize the display page based on your browser type and user preferences. You can choose whether or not to accept cookies by changing your Internet browser settings. Be aware that doing so may impair or limit some functionality of the FNF Website. Web Beacons. We use web beacons to determine when and how many times a page has been viewed. This information is used to improve our websites. Do Not Track. Currently our FNF Websites do not respond to “Do Not Track” features enabled through your browser. Revised May 1, 2018 Copyright © 2018. Fidelity National Financial, Inc. All Rights Reserved Links to Other Sites. FNF Websites may contain links to other websites. FNF is not responsible for the privacy practices or the content of any of those other websites. We advise you to read the privacy policy of every website you visit. Use of Personal Information FNF uses Personal Information for three main purposes: • To provide products and services to you or in connection with a transaction involving you. • To improve our products and services. • To communicate with you about our, our affiliates’, and third parties’ products and services, jointly or independently. When Information Is Disclosed We may make disclosures of your Personal Information and Browsing Information in the following circumstances: • to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure; • to nonaffiliated service providers who provide or perform services or functions on our behalf and who agree to use the information only to provide such services or functions; • to nonaffiliated third party service providers with whom we perform joint marketing, pursuant to an agreement with them to jointly market financial products or services to you; • to law enforcement or authorities in connection with an investigation, or in response to a subpoena or court order; or • in the good-faith belief that such disclosure is necessary to comply with legal process or applicable laws, or to protect the rights, property, or safety of FNF, its customers, or the public. The law does not require your prior authorization and does not allow you to restrict the disclosures described above. Additionally, we may disclose your information to third parties for whom you have given us authorization or consent to make such disclosure. We do not otherwise share your Personal Information or Browsing Information with nonaffiliated third parties, except as required or permitted by law. We reserve the right to transfer your Personal Information, Browsing Information, and any other information, in connection with the sale or other disposition of all or part of the FNF business and/or assets, or in the event of bankruptcy, reorganization, insolvency, receivership, or an assignment for the benefit of creditors. By submitting Personal Information and/or Browsing Information to FNF, you expressly agree and consent to the use and/or transfer of the foregoing information in connection with any of the above described proceedings. 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The revised Privacy Notice, showing the new revision date, will be posted on the FNF Website. Each time you provide information to us following any amendment of this Privacy Notice, your provision of information to us will signify your assent to and acceptance of the terms of the revised Privacy Notice for all previously collected information and information collected from you in the future. We may use comments, information or feedback that you submit to us in any manner that we may choose without notice or compensation to you. Accessing and Correcting Information; Contact Us If you have questions, would like to access or correct your Personal Information, or want to opt-out of information sharing for affiliate marketing, send your requests via email to privacy@fnf.com, by phone to (888) 934-3354, or by mail to: Fidelity National Financial, Inc. 601 Riverside Avenue, Jacksonville, Florida 32204 Attn: Chief Privacy Officer Revised May 1, 2018 Copyright © 2018. Fidelity National Financial, Inc. All Rights Reserved www.OPCservices.com | 2280 Market Street, Suite 200, Riverside, CA 92501 ph 951.683.2353 | fx 951.683.3901 September 20, 2018 James R. Paul City Project No. 2011-05 Sharon L. Paul Federal Project No. BRLKS-5433(014) 55585 Cherry Hills Drive La Quinta, CA 92253 Regarding: Notice of Decision to Appraise Dune Palms Bridge Project Property Address: 79440 Corporate Center Drive, La Quinta, CA 92253 APN: 600-390-021 Dear Mr. and Mrs. Paul: The City of La Quinta (City) has decided to appraise the above-referenced real property, which is commonly known as 79440 Corporate Center Drive, La Quinta, CA 92253, and is identified as Riverside County Tax Assessor’s Parcel Number 600-390-021. The City is considering acquiring a Temporary Construction Easement (Subject Property) over a portion of your Property, for public street purposes in connection with the proposed Dune Palms Bridge Project (Project). Please see Exhibits “A” and “B”, attached hereto, that legally describe and depict the proposed easements. No determination has been made at this time to actually purchase the Subject Property. Instead, the decision to appraise is an initial step that could lead to a purchase offer by The City of La Quinta. The City of La Quinta, in order to maintain the safety and efficient operation of its roads and bridges, proposing replacement of the existing low water crossing that spans the Coachella Valley Storm Water Channel at Dune Palms Road, a secondary but vital north-south arterial roadway. Final improvements will allow for safer, more reliable passage for all users. The City has retained the services of Overland, Pacific & Cutler, LLC (OPC), a right of way consulting firm, to discuss the proposed acquisition of the Subject Property for the proposed Project with you. OPC will also explain the proposed transaction and coordinate the acquisition process. This letter is not an offer to purchase. It is a notice to advise you that the City would like to appraise the Subject Property to determine its present fair market value. The City is required to obtain an independent appraisal of the fair market value of the Subject Property prior to making any offer to purchase property intrerests for a public project. The appraisal will be the basis for any offer made to you by the City to purchase the Subject Property. No decision has been made at this time to acquire the Subject Property. This is a notice of appraisal only and does not constitute a request to vacate the Subject Property, nor does this letter establish eligibility for relocation assistance or payments. In the next few days, you will receive a letter from Elizabeth M. Kiley, MAI, of the Kiley Company, an independent appraisal firm retained on behalf of the City, notifying you of proposed dates for the appraiser’s inspection of the Subject Property. The appraiser will advise you, in writing, of your right to The City of La Quinta Notice of Decision to Appraise P a g e |2 accompany them during the inspection of the Subject Property. You are encouraged to provide the appraiser with all information you wish the appraiser to consider in connection with his appraisal of the Subject Property. Your cooperation with the appraiser will be greatly appreciated. If you have any tenants occupying the Subject Property, we would also appreciate your notifying them of the appraisal and request their cooperation. Your contact with the appraiser is voluntary. The appraiser, however, will not be able to enter onto the Subject Property unless the appraiser obtains your consent to conduct the physical inspection. If you do not consent to the physical Inspection, the appraiser will inspect the Subject Property from the public right of way. All services and/or benefits to be derived from any right-of-way activity will be administered without regard to race, color, national origin, or sex, in accordance with Title VI of the Civil Rights Act of 1964 2000d, et seq.) and Section 162(a) of the Federal Highway Act of 1973 (23 U.S.C. 324). Enclosed for your information are a copy of Title VI Statutes and Regulations, the Title VI Complaint Process, and a booklet entitled “Caltrans and You” that discusses these right-of-way requirements. The enclosed brochure entitled “Your Property Your Transportation Project” contains information pertaining to the process involved in the property acquisition. If you have any questions about the enclosed information or would like additional information, please contact me at (760) 776-1238. After the appraisal is completed, the City will review and approve the documents. The City will then make a decision as to whether to extend an offer to purchase the Subject Property. If the City decides to make an offer, the offer will be based on the fair market value of the Subject Property and the City will negotiate with you and attempt to reach an agreement. Sincerely, John M. Cutler Sr. Project Manager Enclosures: Exhibits “A” and “B” Title VI Package Your Property Your Transportation Project cc: Elizabeth M. Kiley, MAI, The Kiley Company DUNE PALMS BRIDGE PROJECT TITLE VI PACKAGE The project proposed by The City of La Quinta will be receiving federal financial assistance. Pursuant to Title VI of the Civil Rights Act of 1964, no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. Other statutes provide protection against discrimination on the basis of sex, age or disability. The enclosed Title VI Package is being provided for your information to further explain your rights. The Package includes the following documents:  Title VI Booklet  Title VI of the 1964 Civil Rights Act and Related Statutes  The U.S. Department of Commerce of the Census, Language Identification Flashcard  Right of Way Title VI Surve y Form with Self-Addressed Stamped Envelope  Right of Way Title VI Discrimination Complaint Form It is requested the Right of Way Title VI Surve y form be completed and returned in the self-addressed stamped envelope. If you read or speak a language different than English, please write your name and address on the top of the page and check the appropriate box on the Language Identification Flashcard; or, if you believe you have been subjected to discrimination, please fill out the Right of Way Title VI Discrimination Complaint form and return to the following: John Cutler Project Manager Overland, Pacific & Cutler, LLC 2280 Market Street, Suite 200 Riverside, CA 92501 Jan 2017 Your Rights Under Title VI and Related Statutes This brochure is designed to inform you of the requirements of Title VI of the Civil Rights Act of 1964 and your rights under those requirements. Caltrans& You District 1 Equal Employment Opportunity (EEO) Office 1656 Union Street Eureka, CA 95501 (707) 445-5318 District 2 EEO Office 1657 Riverside Drive Redding, CA 96001 (530) 225-3055 District 3 EEO Office 703 B Street Marysville, CA 95901 (530) 741-7130 District 4 EEO Office P.O. Box 23660, MS 6A Oakland, CA 94623 (510) 286-5871 District 5 EEO Office 50 Higuera Street San Luis Obispo, CA 93401 (805) 549-3037 District 6 EEO Office 1352 West Olive Avenue Fresno, CA 93728 (559) 444-2522 District 7 EEO Office 100 S. Main Street Los Angeles, CA 90012 (213) 897-0797 District 8 EEO Office 464 West 4th Street, MS 1249 San Bernardino, CA 92401 (909) 383-6396 District 9 EEO Office 500 S. Main Street Bishop, CA 93514 (760) 872-0752 District 10 EEO Office 1976 East Dr. Martin Luther King Jr. Blvd. Stockton, CA 95205 (209) 948-3911 District 11 EEO Office 4050 Taylor Street, MS 251 San Diego, CA 92110 (619) 688-4249 District 12 EEO Office 1750 East 4th Street, Suite 100 Santa Ana, CA 92705 (657) 328-6595 This publication will be made available in alternative formats: Braille Large print Computer disc Audio version or in a different language upon request by calling the Caltrans Office of Business & Economic Opportunity (916) 324-8379 711 (TTY) Headquarters Title VI Coordinator 1823 14th Street, MS 79 Sacramento, CA 95811 (916) 324-8379 What does this mean? That Caltrans strives to ensure that access to and use of all programs, services, or benefits derived from any Caltrans activity will be administered without regard to race, color, national origin, sex, age, disability or socioeconomic status. Caltrans will not tolerate discrimination by a Caltrans employee or recipients of federal funds such as cities, counties, contractors, consultants, suppliers, universities, colleges, planning agencies, and any other recipients of federal-aid highway funds. Caltrans prohibits all discriminatory practices, which may result in: • Denial to any individual of any service, financial aid, or benefit provided under the program to which he or she may be otherwise entitled; • Different standards or requirements for participation; • Segregation or separate treatment in any part of the program; • Distinctions in quality, quantity, or manner in which the benefit is provided; • Discrimination in any activities conducted in a facility built in whole or part with federal funds. To ensure compliance with Title VI, related statutes, and the Presidential Executive Order on Environmental Justice, Caltrans will: • Avoid or reduce harmful human health and environmental effects on minority and low-income populations; • Ensure the full and fair participation by all communities including low-income and minority populations in the transportation decision-making process; • Prevent the denial of, reduction in, or significant delay in the receipt of benefits by minority and low-income populations. Additionally, any recipient, including, but not limited to, Metropolitan Planning Organizations and cities and counties, who receive federal financial aid bears a responsibility to administer its program and activities without regard to race, color, national origin, sex, age, disability, or socioeconomic status. Benefits and Services Caltrans’ mission is to provide the people of California with a safe, efficient, and effective inter-modal transportation system. All of the work Caltrans performs is intended to assist the transportation needs of all the people of California regardless of race, color, national origin, sex, age, disability, or socioeconomic status. Are your rights being violated? If you believe that you have been discriminated against because of your race, color, national origin, sex, age, or disability, you may file a written complaint with the Caltrans Equal Employment Opportunity (EEO) Office. District EEO offices are located statewide. The addresses and telephone numbers are located on the back of this brochure. Title VI complaints are forwarded to Sacramento for investigation by the Caltrans Office of Business & Economic Opportunity Title VI Program. Who bears the responsibility to Title VI? All of Caltrans employees and its functional programs.The Caltrans Office of Business & Economic Opportunity Title VI Program provides continuous leadership, guidance, and technical assistance to ensure ongoing compliance with Title VI and the Executive Order on Environmental Justice. What is Title VI? Title VI is a statute provision of the Civil Rights Act of 1964. Title VI (Sec. 601) of the Civil Rights Act of 1964 provides: “No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.” (42 U.S.C. Sec. 2000d) Additionally, Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations 1994 provides: “Each Federal agency shall make achieving environmental justice part of its mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of its programs, policies, and activities on minority populations and low-income populations.” Related statutes provide protection against discrimination on the basis of sex, age, or disability by programs receiving federal financial assistance. October 22, 2018 James R. And Sharon L. Paul 55585 Cherry Hills Drive La Quinta, CA 92253 RE: NOTICE OF INTENT TO APPRAISE REAL PROPERTY Assessor Parcel Number: 600-390-033 Address: 79440 Corporate Center Drive, La Quinta Dear Property Owner: The City of La Quinta (the “City”) has requested an appraisal of your property at the above referenced address for possible acquisition purposes by the City as part of the Dune Palms Bridge Project. The City, in order to maintain the safety and efficient operation of its roads and bridges, is proposing the replacement of the existing low water crossing that spans the Coachella Valley Storm Water at Dune Palms Road, a north-south arterial highway. The Kiley Company, an independent real estate appraisal firm, has been retained to appraise the property that is subject to a possible acquisition. We would like to inspect the property at your earliest convenience. If you or one of your representatives would like the opportunity to accompany us during our inspection, please notify us as soon as possible. Your attendance is completely optional. You are invited to provide information about your property if you feel it has an effect on the value. If the property is leased it would be helpful if you would provide us with the terms of the lease or leases. If you have any questions regarding our inspection, please contact Meredith McDonald or myself in our office at (714) 665-6515 during normal business hours. Thank you for your cooperation. Elizabeth M. Kiley, MAI, AI-GRS Certified General Real Estate Appraiser Certificate No. AG005391