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Published byAthena Kettles Modified over 9 years ago
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Paula Gutierrez Baeza, Esq. Richards, Watson & Gershon Amer Attar, P.E., MBA City of Temecula Joyce L. Riggs, MAI, SR/WA Riggs & Riggs, Inc.
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PROJECT DESCRIPTION Purpose of Project Road is a Major Arterial Realign and Widen Road to Ultimate Configuration Connect Road to a Proposed Major Arterial Consistent with General Plan Road Before Project Center Dual Left Turn Lane Dead-Ends at a Bank Building South of Project
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PROJECT DESCRIPTION Road After Project Two Lanes in Each Direction Landscaped Median Ability to Connect to Future Major Road Full Street improvements
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PROPERTY DESCRIPTION Industrial Building Light Industrial Zoning Business Park General Plan Low Building Coverage Ratio Access From One Driveway Need for Small Area of Fee and Temporary Construction Easement for Project
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IMPACTS TO PROPERTY Acquired Property and TCE Landscaping & Internal Circulation Road Impacts Widen Driveway New Raised Median – Restrict Left Turns Travel Distance for Truck from Freeway - Before vs. After Condition
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Driveway Before No Raised Median Driveway After Raised Median
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Original Truck Route from Freeway 3800 Ft ~ ¾ Mile New Truck Routes from Freeway 9500 Ft ~ 1 ¾ Miles 10800 Ft ~ 2 Miles
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NEGOTIATIONS WITH OWNER Attempts to Acquire Property with Owner by Negotiated Agreement No Success Council Adopted Resolution of Necessity Complaint Filed
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APPRAISAL VALUATION Valuation of Larger Parcel – Entire Property Income Capitalization Sales Comparison Approach Valuation of Land Value – As Acquisition Area Included Land and Only Site Improvements Value of Fee Part Acquired (Land & Site Improvements) Value of Remainder After Acquisition Value of Temporary Construction Easement
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VALUATION OF THE PART ACQUIRED Land Area$/SF % Rights AcquiredIndicated Value 13,363 SFx$7.50x100% $100,223 Value of the Land - Fee Part Acquired $100,223 SITE IMPROVEMENST/COMPONENT SUNITUNIT PRICECOST Asphalt Paving5,850 SF$2.50 PSF$14,625 Total Site Improvements$14,625 Indirect Costs (13.0% of Direct Costs) $1,901 Total Direct and Indirect Costs$16,526 Entrepreneurial Profit (15.0% of Total) $2,479 Replacement Cost New of Hardscape Improvements$19,005 Less: Depreciation (50.0%)$ 9,503 Depreciated Replacement Cost New of Hardscape$ 9,503 Landscaping: Grass with Sprinklers7,513 SF$2.50 PSF $18,783 Trees2$350.00 EA$ 700 Total Landscaping Costs$19,483 Indirect Costs (13.0% of Direct Costs) $2,533 Total Direct and Indirect Costs$22,015 Entrepreneurial Profit (15.0% of Total) $3,302 Replacement Costs New of Landscaping$25,318 Estimated Value in Place of the Improvements$34,821
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Summary of Part Acquired Valuation Value of the Land to be Acquired in Fee$100,223 Plus: Value of the Improvements to be Acquired 34,821 Total Value of the Fee Part Acquired$135,044 * * * AreaRate Percentage TermValue 9,360 SFx$7.50/SFx10%x 1.25 Year =$8,775 Value of Land Area in Temporary Construction Easement$8,775 All site improvements within the temporary construction easement area will be replaced in kind as part of the project.
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SUMMARY OF VALUE CONCLUSIONS Value of the Whole Before Acquisition$2,780,000 217,804 SF - site (fee) + improvements Value of the Part Acquired as Part of the Whole $135,044 (Fee) 13,363 SF of Land$100,223 Site Improvements$ 34,821 Value of the Remainder as Part of the Whole$2,644,956 Value of the Remainder After Acquisition, Disregarding Benefits $2,644,956 Severance Damages $ -0- Value of the Remainder After Acquisition, Considering Benefits $2,644,956 Less: Benefits $ -0- Net Severance Damages$ -0- Estimated Just Compensation$135,044 Value of Temporary Construction Easement Part Acquired: TCE9,360 SF of land$ 8,775 Just Compensation for Temporary Construction Easement$ 8,775 Total Estimated Just Compensation$143,819 Rounded To:$145,000
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LEGAL PROCESS Resolution of Necessity Filing of Complaint in Eminent Domain Answers Filed by Property Owner and Lessee Meetings on Site with Property Owner and Lessee Deposition of Lessee Mediation to Narrow Issues Exchange of Expert Valuation Data Settlement with Lessee Mediation on Valuation Issues No Settlement with Owner Deposition of Experts
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DEFENDANT’S APPRAISER’S VALUATION Value of the Larger Parcel $3,600,000 Value of Fee Part Acquired$ 286,240 Land Value 13,363 SF @ $13.55/SF$181,100 Improvements in Fee Area: Three Mature Trees$50,000 Grass & Sprinkler System$41,535 Chain Link Fencing w/Barb Wire$ 1,875 Asphalt Paving$11,730 Total Improvements$105,140 Temporary Construction Easement - 0- Cost to Cure Damages (15% of $3,600,000)$ 540,000 Severance Damages (20% of $3,600,000)$ 720,000 Total Just Compensation$1,546,140
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DEPOSITION OF EXPERTS Appraisal – Weakness in Property Owner’s Appraisal Errors Found Methodology Problems Architect Appraiser – 2 nd Day Follow Up Questions Traffic Engineer Weakness in Analysis Different Scale Used for Drawings Truck Turning Radius Different than Scale Used for Underlying Architectural Site Drawings
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Truck Path Turning In Truck Path Turning Out
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FURTHER SETTLEMENT TALKS After Depositions Identified Strengths and Weaknesses of Case Prepared Motions Consideration of Trial Costs Legal Expert Fees Exhibits Stronger Negotiating Position After Depositions Owner Settled for Less Than Original Offer
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WRAP UP Owner’s Purpose in Challenging Acquisition – Rezone Property Light Industrial vs. Service Commercial
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