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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.

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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Paula Gutierrez Baeza, Esq.Richards, Watson & GershonAmer Attar, P.E., MBACity of TemeculaJoyce L. Riggs, MAI, SR/WARiggs & Riggs, Inc.

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

PROJECT DESCRIPTION

Road After Project Two Lanes in Each Direction Landscaped Median Ability to Connect to Future Major

Road Full Street improvements

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

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

Driveway Before

No Raised Median

Driveway AfterRaised Median

Original Truck Route from Freeway

3800 Ft ~ ¾ Mile

New Truck Routes from

Freeway9500 Ft ~ 1 ¾ Miles10800 Ft ~ 2 Miles

NEGOTIATIONS WITH OWNER

Attempts to Acquire Property with Owner by Negotiated Agreement

No Success Council Adopted Resolution of

Necessity Complaint Filed

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

VALUATION OF THE PART ACQUIREDLand Area $/SF % Rights Acquired

Indicated Value

13,363 SF x $7.50 x 100% $100,223

Value of the Land - Fee Part Acquired $100,223

SITE IMPROVEMENST/COMPONENT S UNIT UNIT PRICE COST

Asphalt Paving 5,850 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 Sprinklers 7,513 SF $2.50 PSF $18,783

Trees 2 $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

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

* * *Area Rate Percentage Term Value

9,360 SF x $7.50/SFx 10% 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.

SUMMARY OF VALUE CONCLUSIONSValue 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:

TCE 9,360 SF of land $ 8,775

Just Compensation for Temporary Construction Easement $ 8,775

Total Estimated Just Compensation $143,819Rounded To:

$145,000

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

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

DEPOSITION OF EXPERTS

Appraisal – Weakness in Property Owner’s Appraisal Errors Found Methodology Problems

Architect Appraiser – 2nd 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

Truck Path Turning In

Truck Path Turning Out

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

WRAP UP

Owner’s Purpose in Challenging Acquisition – Rezone PropertyLight Industrial vs. Service Commercial