Agency to the Dissolved Shai'ter Community

RESOLUTION NO. 27

A RESOLUTION OF'THE OVERSIGHT BOARD OF' THE SUCCESSOR AGENCY TO THE DISSOLVED SHAI'TER COMMUNITY DEVELOPMENT AGENCY, APPROVING A PURCHASE SALE AGREEMENT SELLING APN 091.180.18 TO THE CITY OF SHAFTER AND APPROVING THE RELATED ASSIGNMENT OF A GROUND LEASE

\ilHEREAS, pursuant to Health and Safety Code Section34l73(d), the City of Shafter is the successor agency to the Shafter Community Development Agency ("Successor Agency"); and

WHEREAS, pursuant to Health and Safety Code Section 34173(9), the Successor Agency is now a separate legal entity from the City; and

WHEREAS, Health and Safety Code Section34l9l.5(b) requires the Successor Agency to prepare a Long Range Property Management Plan ("Property Management Plan") that addresses the disposition and use of the real properties of the former redevelopment agency; and

WHEREAS, Health and Safety Code Section 34791.5(b) also requires the Successor Agency to submit the Property Management Plan to the Successor Agency's oversight board and the Department of Finance for approval no later than six months following the issuance to the Successor Agency of the Finding of Completion pursuant to Health and Safety Code Section 34179.7; and

WHEREAS, the Department of Finance issued the Successor Agency a Finding of Completion on March 21,2013; and

WHEREAS, the Successor Agency approved a Property Management Plan that contains all the information required under Health and Safety Code Section34l9l.5 on April 16,2013 by way of ResolutionNo.226S; and

WHEREAS, the Oversight Board of the Successor Agency approved the Property Management Plan on April 23,2013 by way of Resolution No.8; and

WHEREAS, the California Department of Finance reviewed the approved Property Management Plan and provided staff with proposed changes to the plan which were incorporated into the revised Property Management Plan; and

WHEREAS, the Successor Agency approved a revised Property Management Plan on November 19,2013 by way of ResolutionNo.2303; and

WHEREAS, the Oversight Board of the Successor Agency approved the revised Property Management Plan on Novemb er 2l , 2013 by way of Resolution No. 12; and WHEREAS, the California Department of Finance approved the revised Property Management Plan on November 22,2013; and

WHEREAS, the Successor Agency approved a second revision to the Property Management Plan on April 1,2014 by way of Resolution No.2325; and

\ilHEREAS, the Oversight Board of the Successor Agency approved the second revision to the Property Management Plan on April 2,2014 by way of Resolution No.22; and

\ilHEREAS, the California Department of Finance approved the second revision to the Property Management Plan on May 6,2014; and

WHEREAS, the Shafer Community Development Agency entered into a Ground Lease, dated April 7,2008 ("Ground Lease"), for the lease of APN 091-180-18 to Cemex Construction Materials L.P.; and

\ryHEREAS, the approved Property Management Plan includes the specific sale of APN 091-180-18 at the current appraised value and the Assignment of the Ground Lease to the City of Shafter; and

WHEREAS, APN 091-180-18 was appraised at the amount of $540,000 by Michael Burger & Associates on August 15,2014, a copy of which is attached as Exhibit A; and

WHEREAS, in accordance with the approved Long Range Property Management Plan, the Successor Agency approved the selling of APN 091-180-18 to the City of Shafter for $540,000 and the assignment of the Ground Lease to the City on September 2,2014 by way of Resolution No. 2363.

NOW, THEREFORE, THE OVERSTGHT BOARD OF THE SUCCESSOR AGENCY TO THE FORMER SHAFTER COMMUNITY DEVELOPMENT AGENCY, DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above aÍe true and correct and are incorporated into this Resolution by this reference.

Section 2. Approval of the sale of APN 091-L80-18 to the Citv of Shafter. The Oversight Board of the Successor Agency hereby approves sale of APN 091-180-18 to the City of Shafter and the Purchase Sale Agreement regarding this sale in substantially the same the form as attached hereto as Exhibit B.

Section 3. The Oversight Board of the Successor Agency hereby approves the assignment of the Ground Lease to the City of Shafter and the Assignment of Ground Lease document in substantially the same the form as attached hereto as Exhibit C. Section 4. Proceeds from the sale. In accordance with the Property Management Plan, the Oversight Board of the Successor Agency hereby direct that all proceeds from the sale of APN 091-180-18 be utilized for the payment of enforceable obligations which have been approved on a RecognizedObligation Payment Schedule.

Section 5. Execution and transmittal of the purchase sale agreement. The City Manager and Administrative Service Director are hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution and comply with applicable law regarding the Long Range Property Management Plan, the sale of APN 091-180-18, and the assignment of the Ground Lease, pursuant to that plan, including but not limited to submitting the Purchase Sale Agreement and Assignment of Ground Lease document to the State of California Department of Finance for review.

Section 6. Effectiveness. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED at a special meeting of the Oversight Board of the Successor Agency to the dissolved Shafter Community Development Agency on the 10th day of September,2014, by the following vote:

Scott Hurlbert,

ATTEST:

Deputy Clerk CERTIFICATE OF GOVERNING BODY'S ACTION

STATE OF CALIFORNIA ) ) SS. COUNTY OF KERN )

I, HEREBY CERTIFY that the above and foregoing Resolution No. 27 was duly passed and adopted by the Oversight Board of the Successor Agency to the Dissolved Shafter Community Development Agency at its special meeting held on the lOth day of September, 20l4,by the following vote:

AYES: Bray, Feichter, Hurlbert, Rodriguez, Slayton, and Zervis' NOES: None. ABSENT: Hitchcock. ABSTAINING: None.

DATED: September 10,2014

Pallares, Deputy City Exhibit A

Appraisal Report

Vacant Land 250 Carver St. Shafter, CA 93263

August 15, 2014

FOR: City of Shafter 336 Pacific Ave. Shafter, CA 93263

Valbridge Property Advisors | Michael Burger & Associates

4915 Calloway Dr., Ste. 100 Bakersfield, CA 93312 661-587-1010 phone Valbridge Job No. 661-834-0748 fax 911-14 valbridge.com

August 15, 2014

City of Shafter 336 Pacific Ave. Shafter, CA 93263

Re: FILE #911-14 Appraisal Report: Vacant Land, 250 Carver St., Shafter, CA 93263

Attention: Jim Zervis

Ladies and Gentlemen:

In execution of this appraisal assignment, I inspected the property referred to above on August 15, 2014, in order to determine market value of the fee simple estate in the surface rights as of this date.

The purpose, intended use and scope of this appraisal, as well as property rights appraised are summarized on pages 5 - 7 of the enclosed report. Assumptions and Limiting Conditions are stated on pages 3 - 5.

As a result of my investigation, it is my opinion market value based on a 6 month exposure period, as of August 15, 2014, is:

$540,000 (FIVE HUNDRED FORTY THOUSAND DOLLARS)

No environmental site assessment was furnished. For purposes of this appraisal, it is assumed no hazardous-toxic material contamination has occurred. Therefore, the cost of clean-up, encasement or removal and its effect on value, have not been considered.

No consideration has been given in this appraisal as to the value of the property located on the premises considered by the appraiser to be personal property, nor has he given consideration to the cost of moving or relocating such personal property; only the real property has been considered.

Because no title policy was made available to the appraiser, he assumes no responsibility for such items of record not disclosed by his customary investigation.

4915 CALLOWAY DR., STE. 101, BAKERSFIELD, CALIFORNIA 93312 TEL 661.587.1010 FAX 661.834.0748 www.bakersfieldappraisers.com

TABLE OF CONTENTS

PHOTOGRAPHS ...... 1 AREA ANALYSIS ...... 13 SUMMARY OF SALIENT FACTS AND LOCATION ...... 13 CONCLUSIONS ...... 2 TRANSPORTATION ...... 14 ASSUMPTIONS AND LIMITING CONDITIONS ...... 3 ECONOMY ...... 15 SURROUNDING USE ...... 15 IDENTIFICATION OF SUBJECT PROPERTY ...... 5 TREND ...... 16 PURPOSE OF APPRAISAL AND DEFINITIONS ...... 5 TREND ...... 16 INTENDED USE & USERS OF APPRAISAL ...... 6 PROPERTY DATA ...... 16 SCOPE OF APPRAISAL PROCESS ...... 7 ASSESSOR'S PARCEL NO...... 16 REGIONAL ANALYSIS ...... 8 LEGAL DESCRIPTION ...... 16 OWNER OF RECORD ...... 16 SOCIAL ...... 8 PROPERTY HISTORY ...... 16 Employment-Population Data ...... 8 ASSESSMENTS AND TAXES ...... 17 ECONOMIC ...... 8 SITE DATA ...... 17 Agriculture ...... 9 HIGHEST AND BEST USE ...... 19 Oil-Energy ...... 10 As Vacant ...... 19 Industrial ...... 11 METHOD OF VALUATION ...... 20

Housing ...... 12 SALES COMPARISON APPROACH ...... 21

ENVIRONMENTAL CONDITIONS ...... 12 COMPARABLE SALES DATA ...... 21 CONCLUSION-TREND ...... 13 CERTIFICATION ...... 23

ADDENDA

APPRAISER'S QUALIFICATIONS ...... 1 ENGAGEMENT LETTER ...... 2 PARCEL MAP 11468, PHASE 3 ...... 3 LISTING BROCHURE ...... 4 SALE DATA SHEETS ...... 5

File #911-14

PHOTOGRAPHS

Looking north on Carver St. Looking south on Carver St.

Looking northeast across subject Looking east across subject

Vacant Land 1 250 Carver St. Shafter, CA 93263 FILE #911-14

SUMMARY OF SALIENT FACTS AND CONCLUSIONS

CLIENT City of Shafter

OWNER OF RECORD Dissolved Shafter Community Development Agency

PROJECT Vacant Land

PROJECT LOCATION 250 Carver St. Shafter, CA 93263

ASSESSOR'S PARCEL NO. 091-180-18

MAP REFERENCE Thomas Guide, Kern Co.: 2483/A5

CENSUS TRACT 40.00

TYPE OF APPRAISAL Appraisal Report

DATE OF INSPECTION August 15, 2014

INTEREST APPRAISED Fee Simple Estate

PURPOSE/INTENDED USE Eestimate market value so that the property can be transferred from one public agency to another

LAND AREA 180,774 sq.ft. or 4.15 ac.

TOXIC WASTE INFORMATION An environmental site assessment has not been furnished or reviewed. For purposes of this appraisal, it is assumed no toxic-hazardous material contamination exists. Therefore, the cost of clean-up and its effect on value have not been considered.

FLOOD ZONE F.E.M.A. Panel No. 06029C1800E; Zone "X," areas outside of annual 0.2% chance of flood.

ZONING IH: Industrial, Airport Approach Height Combining

Vacant Land 2 250 Carver St. Shafter, CA 93263 FILE #911-14

HIGHEST AND BEST USE As Vacant Due to the current economic conditions, the site would most likely be held until there is demand for uses by zoning or it is developed by an owner-user. The most likely buyer would be an owner-user.

VALUE CONCLUSION $540,000

EFFECTIVE DATE OF APPRAISAL August 15, 2014

ASSUMPTIONS AND LIMITING CONDITIONS

This appraisal, which is confined to setting forth analyses, opinions and conclusions of the property described herein, is subject to the following contingent and limiting conditions. The report itself may contain limiting conditions, qualifications and disclaimers beyond those contained herein.

1. The date of value to which the conclusions and opinions expressed in this report apply, is set forth in the letter of transmittal. Further, the dollar amount of any value opinion rendered is based upon the purchasing power of the American dollar existing on that date.

2. The appraiser assumes no responsibility for economic or physical factors which may affect the opinions in this report which occur after the date of the letter transmitting this report.

3. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

4. The appraiser reserves the right to make such adjustments to the analyses, opinions and conclusions set forth in this report as may be required by consideration of additional data or more reliable data that may become available.

5. No opinion as to title is rendered. Data related to ownership and legal description was obtained from Kern County Assessor's Office 2013-14 tax roll records and is considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements and restrictions, except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management, and available for its highest and best use.

6. The appraiser assumes no responsibility for hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for arranging for engineering studies that may be required to discover them.

7. The property is appraised assuming it to be in full compliance with all applicable federal, state, and local regulations and laws, unless otherwise stated.

8. The property is appraised assuming that all applicable zoning and use regulations and restrictions have been complied with, unless otherwise stated.

9. 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.

Vacant Land 3 250 Carver St. Shafter, CA 93263 FILE #911-14

10. No engineering survey has been made by the appraiser. Except as specifically stated, data relative to size and area was taken from sources considered reliable and no encroachment of real property improvements is considered to exist.

11. No opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the property is subject to surface entry for the exploration or removal of such materials, except as is expressly stated.

12. Maps, plats and exhibits included in this part are for illustration only, as an aid 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.

13. No opinion is intended to be expressed for matters which require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers.

14. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

15. That possession of this report, or a copy of it, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety.

16. Unless otherwise stated in this report, the existence of toxic or hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances, such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

17. No detailed soil studies covering the subject property were available to the appraiser. Therefore, any premises as to soil qualities employed in this report are not conclusive but have been discussed with the client and considered consistent with information available to the appraiser.

18. Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal, unless such arrangements are made a reasonable time in advance. It is assumed that there are no structural defects hidden by floor or wall coverings or any other hidden or unapparent conditions of the property; that all mechanical equipment and appliances are in good working condition; and that all electrical components and the roofing are in good condition.

19. The appraiser has personally inspected the subject property and finds no obvious evidence of structural deficiencies, except as stated in this report; however, no responsibility for hidden defects or conformity to specific governmental requirements, such as fire, building and safety, earthquake or occupancy codes can be assumed without provision of specific professional or governmental inspections.

20. No termite inspection report was available. It is assumed that there is no significant termite damage or infestation unless otherwise stated.

21. No consideration has been given in this appraisal as to the value of the property located on the premises considered by the appraiser to be personal property, nor has he given consideration to the cost of moving or relocating such personal property; only the real property has been considered.

Vacant Land 4 250 Carver St. Shafter, CA 93263 FILE #911-14

22. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, the appraiser did not consider possible non-compliance with the requirements of ADA in estimating the value of the property.

IDENTIFICATION OF SUBJECT PROPERTY

The property being appraised is vacant land located at 250 Carver St. It is legally identified as Parcel 4, of Parcel Map 11468 Phase 3, County of Kern, State of California. It is further identified as APN 091-180-18.

PURPOSE OF APPRAISAL AND DEFINITIONS

The purpose of this appraisal is to provide the appraiser's best estimate of the subject property's market value, as of August 15, 2014.

Market Value: According to Federal Reserve System 12 CFR, Parts 208 and 225, (Regulation H, Regulation Y; Docket No. R-0685) Appraisal Standards for Federally Related Transactions, Section 225.62 Definitions, [f], market value is defined as follows:

"Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.

Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated;

2. both parties are well informed or well advised, and acting in what they consider their own best interests;

3. a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

5. the price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."

Vacant Land 5 250 Carver St. Shafter, CA 93263 FILE #911-14

Reasonable Exposure Time: According to Standards No. 6 (SMT-6), USPAP Standard Rules:

"The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based upon an analysis of past events assuming a competitive and open market."

The opinion of the time period for reasonable exposure is not intended to be a prediction of a date of sale or a one-line statement. Instead, it is an integral part of the analyses conducted during the appraisal assignment. The opinion may be expressed as a range and can be based on one or more of the following:

 Statistical information about days on market;  Information gathered through sales verification; and  Interviews of market participants.

Marketing Time: According to The Dictionary of Real Estate Appraisal, Fifth Edition, published by the Appraisal Institute,

"An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of the appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of the appraisal. (Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions" address the determination of reasonable exposure and marketing time.)"

Market participants, to include sellers, investors, brokers and real estate agents, were interviewed relative to anticipated marketing times. Sources report that due to current economic conditions, marketing times vary widely depending on the property type and can range from anywhere between 30 days to 12 months. Marketing time for the subject is estimated at 6 months.

Fee Simple Estate: According to The Dictionary of Real Estate Appraisal, Fifth Edition, published by the Appraisal Institute,

"Absolute ownership unencumbered by any other interest or estate, subject only the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."

INTENDED USE & USERS OF APPRAISAL

This appraisal report is intended to estimate market value so that the property can be transferred from one public agency to another. It has been prepared for the exclusive benefit of City of Shafter and persons specifically authorized by the client; state enforcement agencies and such third parties as may be authorized by due process of law; and a duly authorized Appraisal Institute peer review committee. It may not be used or relied upon by any other party. Any party who uses or relies upon any information in this report, without the preparer’s written consent, does so at his own risk.

This appraisal has been prepared and completed in conformance with Uniform Standards of Professional Appraisal Practice (USPAP), as developed by the Appraisal Standards Board of the Appraisal Foundation, Vacant Land 6 250 Carver St. Shafter, CA 93263 FILE #911-14

minimum appraisal standards mandated by Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), the Ethics and Standards of the Appraisal Institute, and the requirements of City of Shafter.

This appraisal is not based on a requested minimum, a specific valuation or the approval of a loan. Emphasis has been given to valuation on a cash or equivalent basis.

SCOPE OF APPRAISAL PROCESS

This is an Appraisal Report which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice for an Appraisal Report. As such, it presents summary discussions of the data reasoning, and analyses that were used in the appraisal process to develop the appraisers' opinion of value. Supporting documentation concerning the data, reasoning, and analyses is contained in the forthcoming appraisal report and retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the clients and for the intended use stated herein.

I have the necessary knowledge and experience to complete this appraisal and am familiar with the property type and subject market. My qualifications are attached.

This appraisal was requested by Jim Zervis, City of Shafter and he answered questions relative to property history.

The property was inspected August 15, 2014, which is the effective date of this appraisal. Both interior and exterior inspections were made to describe the improvements.

Subsequent to inspection, further specifics relative to the site were investigated, to include flood hazard classification, utility availability, and zoning. Regional, area, and neighborhood trends are developed to support projections.

As part of this appraisal, a number of independent investigations and analyses have been conducted. Market data including land sales have been verified and analyzed for applicable comparable data in the area. Data sources include public records, assessor's records, buyers/sellers, real estate appraisers, and real estate agents.

The Cost, Income, and Sales Comparison Approaches were considered. As the property consists of vacant land, only the Sales Comparison Approach is applicable. Comparative sales of similar parcels are analyzed in application of the Sales Comparison Approach. The market data has been collected, confirmed, and analyzed. Comparable sales were chosen for their similar highest and best uses as outlined within the report. All sales were analyzed and compared to the subject property based on their similarities and dissimilarities. This approach was considered and judged in reaching a final estimate of value.

Vacant Land 7 250 Carver St. Shafter, CA 93263 DeLorme Street Atlas USA® 2010

Regional Map

Data use subject to license. TN Scale 1 : 1,300,000 0 6 12 18 24 30 mi © DeLorme. DeLorme Street Atlas USA® 2010. MN (12.7°E) km 0 12 24 36 48 60 www.delorme.com 1" = 20.52 mi Data Zoom 7-3 FILE #911-14

REGIONAL ANALYSIS

SOCIAL TRENDS

Employment-Population Data - Percent change in population over the year for the incorporated communities and remainder of Kern County are summarized as follows:

KERN COUNTY POPULATION GROWTH Cities January 2012 January 2013 Increases % Change Arvin 19,849 19,960 111 0.56% Bakersfield 354,470 359,221 4,751 1.34% California City 13,259 13,150 ( 109) -0.82% Delano 52,003 51,963 ( 40) -0.08% Maricopa 1,163 1,165 2 0.17% McFarland 12,333 12,577 244 1.98% Ridgecrest 28,088 28,348 260 0.93% Shafter 16,927 17,029 102 0.60% Taft 8,905 8,911 6 0.07% Tehachapi 13,871 13,313 ( 558) -4.02% Wasco 25,323 25,710 387 1.53% Unincorporated 303,786 306,535 2,749 0.90% Kern County Total 849,977 857,882 7,905 0.93% Source: California Department of Finance

As demonstrated on the preceding table, incorporated Bakersfield has exceeded the 300,000 population mark. It grew over 40% from 2000 to 2010. During the last year greatest growth has been in McFarland, Wasco, and Bakersfield.

The unemployment rate in the Kern County was 10.1% in May 2014, down from 11.4% in April 2014, and down from 10.9% in May 2013. This compares with an unadjusted unemployment rate of 7.1% for California, 7.0% in Bakersfield, and 6.3% for the country, in May 2014.

ECONOMIC CIRCUMSTANCES

According to Milken Institute’s 2013 Index of Best-Performing Cities, Kern County ranked 19th nationally, unchanged from 2012, and a significant improvement from 2011’s ranking of 47th. The index ranks metro areas on several factors; job growth, wage/salary growth, relative high-tech gross domestic product growth, and the number of high-tech industries.

The Brookings Institute ranked Kern County second in economic recovery among large California metro areas. Brookings also found that Kern had the second best employment recovery nationwide.

According to the Kern Economic Journal, 2013 Fourth Quarter, section entitled, “Economy at a Glance!” prepared by Abbas P. Grammy, Professor of Economics, CSUB. “The Gross Domestic Product (GDP) increased at an annual rate of 2.8 percent across the full year, according to advance estimates released by the Bureau of Economic Analysis. The increase in real GDP in the fourth quarter primarily reflected positive Vacant Land 8 250 Carver St. Shafter, CA 93263 FILE #911-14

contributions from personal consumption expenditures, exports, non-residential investment, inventory investment, and local government spending. These gains were partially offset by lower federal government spending, residential fixed investments, and imports.”

“The Conference Board’s Index of Leading Economic Indicators – a measure of future economic activity – improved from 96.6 to 98.4 indicating continued economic growth over the next six to nine months. However, the University of Michigan’s Consumer Sentiment Index slipped from 82 to 77 due to weak readings in October and November. The rate of unemployment declined from 7.2 to 7.0 percent. In the meantime, the cost of living increased at an annual rate of 0.9 percent; the cost of producing slipped 4.7 percent; and the cost of employment rose 2.0 percent.”

“In California, the unemployment rate dropped to 8.2 from 8.8 percent. Among counties, San Francisco (4.9 percent), Orange (5.6 percent), San Luis Obispo (5.9 percent), Santa Clara (6.1 percent), San Diego (6.8 percent), and Sacramento (8.0 percent) had unemployment rates below the state average. However, Los Angeles (9.2 percent), Riverside (9.4 percent), and Fresno (12.4 percent) had unemployment rates above the state average.”

“In Kern County, household perceptions remained neutral about employment and financial conditions of their families and relatives as the Bakersfield Consumer Sentiment Index stuck at 100. Meanwhile, local businesses became less optimistic about local employment and financial conditions as the Kern County Business Outlook Index slipped to 119 from 122.”

“In the meantime, the county’s economy expanded at an annual rate of 3.8 percent. Kern’s economy generated $16 billion in real personal income, $150 million more than the previous quarter. However, personal income per worker lost $120 to reach $42,400.”

“Labor market conditions improved in the fourth quarter of 2013. The county hired 2,300 more workers. While the farming industry offered jobs to 700 fewer workers, nonfarm enterprises hired 5,630 more workers. Private enterprises employed 2,230 more workers and local government agencies, including public schools, offered jobs to 3,400 more laborers. Meanwhile, 1,500 fewer workers were unemployed, dropping the rate of unemployment from 11.9 to 11.5 percent. While below the county average, the rate of unemployment was 5.9 percent in Ridgecrest, 6.5 percent in Tehachapi, 7.2 percent in Bakersfield, and 8.2 percent in California City.”

“The housing market recovery came to an unexpected halt. The county’s median sales price for all residential units depreciated $2,700 (or 1.5 percent) from $179,500 to $176,800. In Bakersfield, the median housing price depreciated $600 (or 0.3 percent) from $194,000 to $193,400. In Kern County, 381 fewer homes were sold as total sales decreased from 3,060 to 2,679. In Bakersfield, 310 fewer homes were sold as sales of residential units declined from 2,186 to 1,876. However, the County of Kern issued 547 permits for construction of new privately-owned dwelling units. Housing became slightly less affordable as the affordability indicator grew to 24.0 from 23.7 percent. Meanwhile, the number of notices of loan default homeowners received from their mortgage bankers dropped from 626 to 584 and the number of homes lost to foreclosure decreased from 320 to 309.”

Agriculture: The Kern County agricultural industry relates to 915,000 acres of irrigated farmland, primarily on the valley floor surrounding Bakersfield. It is one of the most diverse farming regions in the nation, producing over 250 different crops to include more than 30 types of fruits and nuts, over 40 types of vegetables, and over 20 field crops, as well as lumber, nursery stock, livestock, poultry, and dairy products.

Vacant Land 9 250 Carver St. Shafter, CA 93263 FILE #911-14

Kern’s value-added agriculture is 8½ times more specialized in the production of farm products than the nationwide cluster.

According to the USDA News Release dated May 2, 2014 and the 2012 Census of Agriculture, Kern County is ranked third in farm returns, both in the U.S. and in California, behind Fresno and Tulare Counties. “The market value of agricultural products sold in California totals $42.6 billion, up $8.7 billion from 2007. In 2012, the number of farms with a value of sales $500,000 or more increased from 8,580 in 2007 to 9,519 in 2012. Total farm production expenses for California increased from $27.0 billion in 2007 to $35.5 billion in 2012.”

Leading export commodities to include almonds, apricots, carrots, cotton, grapes, hay, honeydews, lettuce, nectarines, peaches, plums, potatoes, roses, and watermelons are exported to over 85 foreign countries. The county leads the state in production of almonds, pistachios, carrots, watermelons, sheep, and wool. The most current data for total crop value and the top crops produced in the county are summarized as follows:

5-YEAR CROP SUMMARY - KERN COUNTY 2008 2009 2010 2011 2012 TOTAL CROP VALUE $4,033,312,000 $3,606,498,000 $4,757,416,700 $5,596,975,600 $6,212,362,100 Value Value Value Value Value COMMODITY (Million) Rank (Million) Rank (Million) Rank (Million) Rank (Million) Rank Grapes $561.48 2 $664.501 $703.961 $707.58 3 $1,498.99 1 Almonds $386.61 4 $435.31 3 $622.973 $727.41 2 $821.86 2 Milk $601.61 1 $437.612 $521.462 $745.47 1 $690.06 3 Citrus $487.04 3 $332.935 $487.425 $540.04 4 $620.35 4 Pistachios $191.97 8 $331.126 $533.856 $389.53 6 $486.21 5 Cattle $220.55 7 $174.227 $265.357 $338.54 7 $382.91 6 Carrots $378.00 5 $343.134 $391.524 $418.74 5 $350.44 7 Hay (Alfalfa) $283.07 6 $106.14 8 $105.16 8 $246.60 8 $213.47 8 Cotton $87.23 11 $63.2111 $148.3611 $174.23 10 $147.64 9 Potatoes $92.86 9 $99.9310 $130.969 $100.42 11 $85.10 10 Silage & Forage $91.58 10 $46.00 13 ** ** $83.89 12 $75.15 11 Pomegranates $61.39 12 $99.029 $114.7310 $55.07 14 $58.78 12 Nursery Crops $43.37 17 $27.46 18 $42.04 18 $28.59 20 $57.56 13 Cherries $36.19 18 **** $96.82612 $227.12 9 ** ** Source: Kern County Agricultural Commissioner’s Office ** NOT IN TOP 20 FOR THIS YEAR The 2012 gross value of all agricultural commodities produced in Kern County was $6,212,362,100, representing an increase of $615,386,500, which is an increase of 11% from the revised 2011 crop value.

The major factors affecting the increase in total value from the 2011 crop year were led by significant increases in Grapes and Almonds. Increases in acreage were experienced in Pistachios and Tangerines.

Oil-Energy: California is one of the nation's pre-eminent producers of oil. It is the fourth-largest oil producer in the United States, behind Texas, Louisiana and Alaska, respectively.

Vacant Land 10 250 Carver St. Shafter, CA 93263 FILE #911-14

Kern County has four of the nation’s 10 largest oilfields and is the nation’s number one oil producing county. Five-year production history for the five largest producing oil fields in the district is summarized as follows:

5 LARGEST PRODUCING OIL FIELDS (Production in millions of barrels) Oil Field 2008 2009 2010 2011 2012 Midway-Sunset 36.3 34.2 32.4 30.6 29.3 Kern River 29.5 29.1 27.4 26.8 26.2 Belridge, South 32.5 29.5 26.5 25.2 23.6 Elk Hills 14.9 13.8 14.1 14.2 14.0 Cymric 18.0 18.3 15.5 13.1 13.6 TOTAL 131.2 124.9 115.9 109.9 106.7 Source: Preliminary Annual Report of the State Oil and Gas Supervisor, California Department of Conservation

According to the Department of Conservation, Division of Oil, Gas and Geothermal Resources, in its 2012 Preliminary Report of California Oil and Gas Production, California’s overall oil production rate increased slightly in 2012, averaging about 541.1 thousand barrels per day, an increase of 0.5 percent from the 2011 average of about 539.2 thousand barrels per day. The state onshore area production decreased about 0.1 percent from 2011 and the state offshore area increased 6.2 percent from 2011. The decrease in oil production was mainly due to the continued normal production decline statewide across-the-board.

Midway-Sunset oil field continued to be the largest producing oil field in California during 2012. Kern River has remained up to second place since 2010.

Commercial/Industrial: In Kern County, there has been an aggressive effort to diversify the local economy from oil, agriculture and military to compatible commercial/industrial growth. Primary emphasis has been directed to the county’s location in consideration of plentiful land and affordable housing, abundant and affordable office and industrial space, large labor force with a strong work ethic and wages lower than the national average.

The economy is largely driven by housing related industries and the region's traditional base of employers such as Edwards Air Force Base, energy companies and the agricultural industry.

The Paramount Logistics Center, formally the International Trade and Transportation Center (ITTC) is situated on a 702-acre parcel at 7th Standard Road and Hwy. 43, within the city limits of Shafter, approximately 10 miles north of Bakersfield. The ITTC is part of the Port of Los Angeles Foreign Trade Zone which offers companies freedom from having to pay import taxes and duties as long as goods are in the zone.

Growth continues in the airport area and along 7th Standard Rd. This area will have three business parks and is easily accessible to Hwy. 99 and Hwy. 65. CarQuest, a 140,000 sq.ft. distribution center was constructed on an 88-acre site near 7th Standard Road, between Quinn Road and Porterville Hwy. Generally, smaller users (less than 100,000 sq.ft.) are attracted to this area; whereas, larger users will prefer to the ITTC and Tejon Ranch.

In addition, the Tejon Industrial Complex at I-5 and Laval Road attracts larger users. IKEA, a furniture retailer, developed their first distribution warehouse, containing approximately 900,000 sq.ft., on an approximate 80-acre site in the complex. Vacant Land 11 250 Carver St. Shafter, CA 93263 FILE #911-14

“Bakersfield's 4.1 percent warehouse vacancy rate at the end of September was the nation's third-lowest, behind only Honolulu and Los Angeles, according to Colliers International.” Cox, J. (2014, January 12). Commercial Space Being Snapped up by Business. The Bakersfield Californian, pp. B1, B4.

Housing: Kern County's outlying communities remain more affordable than many areas and are attracting home buyers from across the state. Median housing prices for each community over the year 2013 to 2014 is summarized on the following table:

Kern County Cities: Median House Prices Cities # Sold Apr-14 Apr-13 % Change ARVIN 13 $137,000 $129,500 5.79% BAKERSFIELD 658 $200,000 $178,250 12.20% BUTTONWILLOW 2 $60,000 n/a n/a CALIFORNIA CITY 19 $65,000 $67,500 -3.70% DELANO 22 $130,000 $157,000 -17.20% FRAZIER PARK 5 $80,000 $119,500 -33.05% INYOKERN 2 $206,500 $145,000 42.41% KERNVILLE 3 $225,000 $155,000 45.16% LAKE ISABELLA 7 $60,000 $102,000 -41.18% LAMONT 6 $79,000 $38,500 105.19% MC FARLAND 6 $199,500 $179,500 11.14% RIDGECREST 46 $119,000 $140,000 -15.00% ROSAMOND 31 $169,000 $131,000 29.01% SHAFTER 11 $150,000 $130,000 15.38% TAFT 21 $59,000 $107,500 -45.12% TEHACHAPI 44 $200,000 $170,000 17.65% WASCO 8 $168,250 $137,500 22.36% Kern County 931 $174,500 $150,000 16.33% Source: DataQuick (DQ News) ENVIRONMENTAL CONDITIONS

Kern County is the third largest county in California. Geographically, the county is approximately one-third desert, one-third mountainous and the remaining one-third, valley. It is strategically located approximately 110 miles north of Southern California and 280 miles south of San Francisco Bay area marketplaces, interconnected by Hwy. 99 and I-5. In addition, the county is served by 13 public, four private and two government airports, as well as Amtrak passenger rail service. As a result of its central location, freeway systems and proximity to major western cities, there are nearly 200 truck carrier operations in Kern County.

Kern County is situated at the southern end of the San Joaquin Valley, with the Temblor Range on the west, Tehachapi Mountains on the south and the Sierra Nevada’s on the east. Elevation levels range from 200-400 feet above sea level in the valley, to 3,000 feet in the desert and 9,000 feet in the mountains. Diverse geography creates large climatic variations, with annual temperature ranges from 20-115°. Average temperature is 65°. Average annual rainfall in the valley is 5-6 inches and in the mountains, 10- 40 inches.

Vacant Land 12 250 Carver St. Shafter, CA 93263 DeLorme Street Atlas USA® 2010

Area Map

Data use subject to license. TN Scale 1 : 25,000 0 600 1200 1800 2400 3000 ft © DeLorme. DeLorme Street Atlas USA® 2010. MN (12.8°E) m 0 200 400 600 800 1000 www.delorme.com 1" = 2,083.3 ft Data Zoom 13-0 FILE #911-14

CONCLUSION-TREND

The overall economic outlook for Kern County is optimistic relative to employment and business condition. According to the article “Tracking Kern’s Economy”, in the Kern Economic Journal, as published by Cal State University Bakersfield, in the Fourth Quarter 2013, “Kern County’s total personal income (in constant 1996 dollars) increased $150 million from $15.85 billion in the third quarter to $16 billion in the fourth quarter of 2013. The main factors contributing to this expansion were increased employment, reduced unemployment, and greater business activity. Relative to four quarters ago, Kern County’s economy generated $300 million more income.”

“The gain of $150 million of personal income translated into an annualized growth rate of 3.8 percent in the third quarter of 2013. Kern’s economy expanded 3.2 percent in the previous quarter and 1.2 percent four quarters ago.”

“The rise in total personal income was offset by a greater increase in the labor force. As a result, personal income per worker lost $120 to reach $42,400 in the fourth of 2013. Likewise, personal income per worker was up $1,300 this quarter relative to four quarters ago.”

Overall, the trend is classed as static to gradually increasing.

AREA ANALYSIS

LOCATION

The subject is a part of the Lerdo Hwy. Business Park which fronts the south side of Lerdo Hwy. within an unincorporated area of east Shafter. It is bordered by Carver Rd. and Carson Way on its west and east, respectively. The future Gecko St. will border its south. The subject fronts the east side of Carson Rd.

Carver St. terminates in a cul-de-sac, one parcel south of the subject. It is an asphalt paved roadway with one lane on the east side and one lane on the west. Carson Way terminates at Lerdo Hwy. to the north. Lerdo Hwy. is a major east-west arterial interconnecting with Hwy. 99, ¾ mile to the east and extends through Interstate 5, 20 miles to the west. Zerker Rd., from the north, terminates into Ledo Hwy ¼ mile to the east and it continues south of Lerdo Hwy., 1 block to the east of the parcel, and Joins Allen Rd. in to Bakersfield 6 miles to the south. Hwy. 99 provides access to Bakersfield, 12 miles to the south.

Vacant Land 13 250 Carver St. Shafter, CA 93263 FILE #911-14

POPULATION-DEMOGRAPHIC DATA

According to the U.S. Census Bureau, the most recent demographics for the City of Shafter are summarized as follows:

TRANSPORTATION

Hwy. 43 (Santa Fe Way) and the BNSF railroad tracks run diagonally through the community, interconnecting with Hwy. 46, eight miles north of Shafter and providing access to the central coast. Highway 99 connects southern and northern California and links Shafter to Bakersfield, 15-20 miles to the south. Wasco is eight miles to the north, at the intersection of Highways 43 and 46.

Minter Field Airport, a General Utility Stage II airfield, is across Lerdo Hwy. to the north. It includes a primary runway of 4,520 feet that can accommodate aircraft weighing up to 22,000 pounds, with a secondary, 2,980-foot runway.

Both Burlington Northern Railroad and Union Pacific Railroad traverse the city, providing a variety of freight options, to include piggyback service. Rail-truck ramps are available providing transcontinental transportation. Amtrak has a depot eight miles north of Shafter for passenger service, with connections to most U.S. destinations.

Vacant Land 14 250 Carver St. Shafter, CA 93263 FILE #911-14

ECONOMY

The City of Shafter was incorporated in 1938, became a Charter City in 1995 and was designated a State Enterprise Zone. Businesses benefit from a streamlined permitting process and other incentives providing cost-effective development which, in turn, provides long-term benefits to the city. In addition, the community has developed a "Visions Project" which adopted a general plan.

Minter Field Airport is located to the east of downtown Shafter, along E. Lerdo Hwy. It was originally constructed in the 1940's, under the Defense Landing Area Program, for the U.S. Army as a flight training center. The airport is rapidly being converted to a major industrial center comprised of a mix of aviation, office, manufacturing, and agricultural users. The total number of users, excluding hangar tenants, approximates 30, to include 15 industrial, six aviation, several office and agricultural. The Minter Field Airport District recently developed approximately 11 small office businesses and commercial uses at the airport. Approximately six have been leased with the remainder vacant and available for rent. The airport district is attempting to extend the length of the run way to 6,500’ by 2018.

California Paper Products recently developed a state of-the-art facility between Zerker Rd. and Carsen Way to the south at 2901 Zerker Rd. It uses 100% recycled consumer waste in the form of cardboard and newspaper to manufacture eco-friendly organic paper used as an underlayment in the roofing business. It is expected to prevent over 50,000 tons of cardboard and newspaper from going into landfills each year. Their paper making process uses no virgin pulp and no chemicals. The system uses only water, which is also recycled; nothing enters into the public water system. Natural gas, a clean source of energy, is used as the primary fuel source. The facility employs over 50 people.

Foreign Trade Zone 276 or the Paramount Logistics Park, is located at the northeast corner of Santa Fe Way and 7th Standard Rd. This area is considered to be outside the normal customs territory, eliminating tariffs and streamlining customs procedures for foreign goods entering the zone. If the products are intended for U.S. markets, full customs procedures and tariffs are applicable when the product leaves for retail markets around the U.S. Currently the zone encompasses 1,625 ac. and is master planned with facilities that can be built-to-suite for facilities ranging from 100,000 to 2.8 million sq.ft. There is a 9,200 linear foot rail spur that serves the development. Current occupants include Baker Hughes, Weatherford, Schlumberger, State Farm, the Hillman Group, and Target. A 1 million sq.ft. building is under construction for American Tire Distributors and a 1.7 million facility is under construction for Ross clothing stores.

SURROUNDING USE

As discussed, the subject is located in the Lerdo Hwy. Business Park which fronts the south side of Lerdo Hwy. An industrial complex occupied by Dover Fluid Management is adjacent to the north, with vacant parcels adjacent to its north, and extending to Lerdo Hwy. Nicholas Construction is to the east, which also has vacant parcels to its north, extending to Lerdo Hwy. Eight parcels are listed for sale in the subject subdivision. The parcels range in size from 1.06 to 4.70 ac., with the asking prices of $3.25 to $5.00/sq.ft. Higher asking prices are associated with smaller parcels fronting Lerdo Hwy. The most recent sales in the development occurred in 2008.

Bidart Cold Storage is one parcel to the west. A 40.01 ac. parcel purchased by Neighbors Well Service in June 2010 for $1,600,000 or $40,000/ac. is to the south of the subject development. California Paper Products is to its east. Elk Corp. at the southeast corner of Zerker Rd. and Lerdo Hwy., with GMC Roofing to the east and Premier Packaging to the south.

Vacant Land 15 250 Carver St. Shafter, CA 93263

FILE #911-14

Minter Field Airport, containing approximately 1,220 acres, is across Lerdo Hwy. to the north at the northwest quadrant of the Lerdo Hwy./Hwy. 99 interchange. The airport is rapidly being converted from a former military base of the 1940’s to a major industrial center comprised of a mix of aviation, office, manufacturing, and agricultural users. The total number of users, excluding hangar tenants, approximates 30, to include 15 industrial, six aviation, several office and agricultural. The Minter Field Airport District is in the process of developing approximately 11 small office businesses and commercial uses at the airport.

The remainder of Lerdo Hwy. consists mostly of industrial and service commercial uses interspersed with retail and vacant land.

TREND

Shafter denotes a strong labor market. Although unemployment fluctuates between 14-18%, this is comparatively low compared with other local agricultural communities. Employment is stabilized due to a diversity of employment. The area predominantly consists of agricultural farmland with scattered oil fields and industrial uses.

Due to current economic conditions, and current development in the immediate area, trend in the area is classed as static to gradually upward.

PROPERTY DATA

ASSESSOR'S PARCEL NO. 091-180-18

LEGAL DESCRIPTION Parcel 4, of Parcel Map 11468 Phase 3, City of Shafter, County of Kern, State of California

OWNER OF RECORD Dissolved Shafter Community Development Agency

PROJECT Vacant Land

PROPERTY HISTORY

The property has been owned City of Shafter and its related entities since 2008. There has been no listing or sales activity within the past five years.

According to Jim Zervis, City of Shafter, the Shafter Community Development Agency is responsible for developing Gecko St. which will span from Carver St. and Carson Way, along the south property line of the parcel. However, the agency was dissolved in February 2012, with the responsibility of the Gecko St. development falling to the successor agency.

Vacant Land 16 250 Carver St. Shafter, CA 93263

FILE #911-14

ASSESSMENTS AND TAXES

The property is owned by a government entity and has no taxes.

SITE DATA

Dimensions/Size According to Parcel Map 11468 Phase 3, the site contains 4.15 ac. or 180,774 sq.ft. This area is net of the roadway easements for Carson Rd. and the future Gecko St. along the south property line.

Topography Level at grade

Utilities Street Improvements Water Municipal Curb Concrete Sewer None Gutter Concrete Gas Southern California Gas Sidewalk Concrete Electricity Pacific Gas and Electric Paving Asphalt

COMMENTS

Dry sewer lines are installed in Carver St. and Carsen Way and will provide sewer to the subject industrial park when wet sewer is available. According to Mr. Zervis, the existing lines are proposed for connection to the City’s infrastructure and not into the Airport district, which does not have enough capacity. Currently, the closest City sewer line is 4,000 ft. away from Carver St. As development occurs between Carver and the City sewer line, the developer will be required to extend the sewer line. Until its installation, the site would have to be served by an on-site septic system. This is typical of the area and does not impact the value. Timing of development is unknown but it is likely it will correspond with increased development in the Lerdo Hwy. Business Park.

ACCESS

The subject fronts the east side of Carver St. and has one access drive therefrom. As discussed, Gecko St. is a future road that will span from Carver St. and Carson Way, along the south property line of the parcel. The agency that will take over the dissolved Shafter Community Development’s assets will be responsible for its development. It is unknown if the subject will have any access drives from Gecko St. Access is considered reasonable.

EARTHQUAKE The property is not located in an Alquist-Priolo Earthquake Fault Zone. The community has adopted a seismic element to the general plan and requires all construction to meet Zone 4 of the Uniform Building Code, which is in consideration of earthquake hazards associated with California.

ENVIRONMENTAL Neither an environmental site assessment nor environmental risk disclosure questionnaire has been furnished to the appraiser. Visual inspection of the property denotes no apparent toxic or hazardous conditions.

Further, it should be emphasized that the appraiser is not qualified to detect hazardous waste or toxic materials. Any comments by the appraiser that might

Vacant Land 17 250 Carver St. Shafter, CA 93263

N D R E E F F O E C D E L T O D G TA Y

S W R H

D R Y A O W L L C A

R D T Y I L A U E Q

D R Y T I L A U A Q

T GC General Commercial General GC Industrial I Combining Height Approach Industrial/Airport IH Commercial Neighborhood NC PUD Residential Density Low R-1 Residential density Medium R-2 Residential density High Medium R-3 Estate Residential RE (Undefined) Plan Specific SP Park - Orchard Plan Specific SP-OP

V A E T Y K

E V A E T Y K City of Shafter Zoning City of Shafter Zoning 99

W Feet

E S

V H A O T L N E E

W V

E D R A R E K R E

Z C

D R R E K R E Z

A City Limits City A Agricultural Combining Height Approach Agricultural/Airport AH BusinessBP Park Combining Height Approach Park/Airport Business BPH Facilities Community CF Combining Height Approach Facilities/Airport Community CFH Canal Commercial Downtown DC Estate E

C 1,000

M Zoning Zone 0 2,000 4,000 6,000

E V A Y R A H C A Z

M P R E D R E C

9 9 F F N N O O RP D

9 N E Y

9 C A E V A Y R A H C A R Z W ME FR FE TA N A S

D R Y R E V R I R D

N E A

L W

M E D R R E V I R E D F TA

A D R R E V I R S D

AY D W R E A F D TA N N A A T

S S

W E

O S

R D R R E I O S U E P

S Y R A

E W

V E I F R TA N

E A V

Y R R E H C N

E A V R Y R E H C

H C

E V A Y R R E H C

H S

F E

E Y E A S W FE TA N A S

T S LN T K S

S N O

N D

A L E

B A

O E

V P A

H N

E E

E V

H C

E E B

S S

VE A

H M EEC B S

E I V A H C E

E V A H C E BE

E V A H E C E B

W T H Y S

E E L D

L I VA S L R A E

R I T N R

E E

V C

A S

D E

E V

C E A V I N T R A W M

E H

E Y

R W S

R F H

E Y E

D E L L I

L S E VA R L E

A I R T R

N E

E VE A R E T

F A H

S C

E A V R

T E

E V A R E F T A

S S

V A

R E T F

H A

S D

V E

E F T A H S R

E V A R T E F A H S W

Y R A W

O H

N Y

A S LE

D E L

N R VA A F

L T

W A R

H T T

N S T E H

S N

C E

L N D

V D

I V

S A

V E A R Y E A

R M

R S R Y E M E A

W R I

V A

A L P O P

E V A R A L P

P N

E A V R

L A

E V A R A L P P O

E V A R A L P O P

E A V R A L P O P

I 43

H D R L L E S S U O B

R D

T E

F R

S L

S I

N S

B I

T E

B E A V I N V O R A C D S

S E V A I N O R A C C S

V E A I N O R A C S

E V A I N O R A C M S FILE #911-14

suggest the possibility of presence of such substances should not be taken as confirmation of presence of hazardous waste or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment.

No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser's descriptions and resulting comments are the result of the routine observations made during the appraisal process.

FLOOD HAZARD According to Federal Emergency Management Agency's "FIRM" Community Panel No. 06029C1800E, effective September 26, 2008, the property is located in a Zone “X,” areas outside of annual 0.2% chance of flood.

RESTRICTIONS A preliminary title report was not available to the appraiser. According to Parcel Map 11468, the subject is affected by a 30’ roadway easement, a 10’ right-of-way dedication, and a 10’ public utilities easement along the west property line. It is also affected by a 36’ roadway easement for the future Gecko St. These easements are typical of the area and do not affect the usability of the subject. There are no other known adverse easements or encroachments are evident, with confirmation by a current title report recommended.

SOILS No soils report was furnished to the appraiser. However, soils appear stable, with no significant settlement or displacement.

ZONING IH: Industrial, Airport Approach Height Combining

PRESENT USE The parcel is vacant. Shafter Community Development, owner, was dissolved, with the subject being transferred to another City of Shafter entity. There is no planned development.

Vacant Land 18 250 Carver St. Shafter, CA 93263 FILE #911-14

HIGHEST AND BEST USE

Highest and best use as taken from the Appraisal Institute's publication, "The Dictionary of Real Estate Appraisal, 4th Edition, 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. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility and maximum productivity."

Highest and Best Use of Land or a Site as Though Vacant "Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination. The use of a property based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements."

Highest and Best Use of Property as Improved "The use that should be made of a property as it exists. An existing improvement should be renovated or retained as is so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one."

As Vacant

LEGALLY PERMISSIBLE:

According to the City of Shafter’s zoning ordinance, the purpose of the Industrial Zone is to provide an area for the establishment of light industrial and limited service commercial uses which meet high performance standards, but which usually cannot meet site development standards applicable to planned research and development parks. It also allows for the development of administrative support, professional offices, and commercial activities on a limited basis. The Airport Approach Height Combining Zone prevents structures form being built 35’ or taller.

PHYSICALLY POSSIBLE:

The site is of sufficient size to accommodate uses permitted by zoning. As discussed, dry sewer lines are installed in Carver St. and Carsen Way and will provide sewer to the subject industrial park when wet sewer is available. According to Mr. Zervis, the existing lines are proposed for connection to the City’s infrastructure and not into the Airport district, which does not have enough capacity. Currently, the closest City sewer line is 4,000 ft. away from Carver St. As development occurs between Carver and the City sewer line, the developer will be required to extend the sewer line. Until its installation, the site would have to be served by an on-site septic system. This is typical of the area and does not have an impact on value. Remaining utilities are typical of the area.

Vacant Land 19 250 Carver St. Shafter, CA 93263 FILE #911-14

Mr. Zervis further stated that the Shafter Community Development Agency was responsible for developing Gecko St. which will span from Carver St. and Carson Way, along the south property line of the parcel. However, the agency was dissolved in February 2012, with the responsibility of the Gecko St. development falling to the successor agency. If a private party were to purchase the property, they would not be responsible for its development. Therefore, the cost to develop the road is not considered in the valuation.

FINANCIALLY FEASIBLE-MAXIMALLY PRODUCTIVE:

Due to the current economic conditions, the site would most likely be held until there is demand for uses by zoning or it is developed by an owner-user. The most likely buyer would be an owner-user.

METHOD OF VALUATION

According to "The Dictionary of Real Estate Appraisal, Fifth Edition," published by the Appraisal Institute, the three approaches typically utilized in property valuation are defined as follows:

Cost Approach: A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of, (or replacement for), the existing structure, including an entrepreneurial incentive, deducting depreciation from the total cost, and adding the estimated land value. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised.

Income Capitalization Approach: A set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. The conversion can be accomplished in two ways. One year’s income expectancy can be capitalized at a market- derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.

Sales Comparison Approach: The process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised, identifying appropriate units of comparison, and making qualitative comparisons with or quantitative adjustments to the sales price (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison.

As discussed, only the Sales Comparison Approach is applicable in valuation of the subject property, as follows:

Vacant Land 20 250 Carver St. Shafter, CA 93263 DeLorme Street Atlas USA® 2010

Site Sales Map

Data use subject to license. TN Scale 1 : 125,000 0 1 2 3 mi © DeLorme. DeLorme Street Atlas USA® 2010. MN (12.8°E) km 0 1 2 3 4 5 www.delorme.com 1" = 1.97 mi Data Zoom 10-6 FILE #911-14

SALES COMPARISON APPROACH

COMPARABLE SALES DATA

There have been few sales of similar parcels in the area. Therefore, in valuation of the subject, the most recent available sales of comparable parcels have been analyzed, with full detailed sheets contained in the addenda. Sales are summarized as follows:

SUMMARY OF RECORDED DATA Date Instrument Sale Recorded Book/Page Grantor Grantee Location 1 10/15/12 12-146367 Noble Howze Family Trust EAT 1203 LLC Coberly Rd., E. of Enos Ln. 2 12/5/12 12-174345 City of Shafter Helena Chemical Beech Ave., Shafter Roll Real Estate Simmons Family 2000 Living 3 4/27/13 13-65332 North Meadows – Flightpath Wy Development LLC Trust Jerrold Felsenthal et al Townsend Ents. ACCN – 4 8/30/13 13-127488 963 Carrier Parkway Roll Real Estate Bakersfield Mineral Court, North Meadows – Flightpath Wy 5 9/10/13 13-132660 Development LLC. LLC Rex L Martin Revocable PT Vision, LLC Sunnyside Ct. 6 9/20/13 13-138490 Trust James Rich and Jeannie Rich James Hickle and Stephanie Gusher Ct. 7 6/4/14 14-63098 Hickle

These transactions have been verified with buyer, seller or agent. Prices and physical characteristics are further detailed as follows:

SUMMARY OF SITE SALES Deed Assessor’s Parcel Cash Equiv. Size Size Price/ Sale Date Number Sales Price (Sq.Ft.) (Acre) Sq.Ft. Zoning 1 10/5/12 090-340-55 & 57 $928,000 528,818 12.14 $1.75 M-2 PD 2 12/5/12 028-180-71 $385,666 193,842 4.45 $1.99 GC 3 4/17/13 482-180-16 $643,000 128,500 2.95 $5.00 M-1 M-2 PD 4 8/19/13 483-220-17, 18 $445,000 74,902 1.72 $5.94 H 5 9/4/13 482-180-15 $643,000 128,570 2.95 $5.00 M-1 M-2 PD 9/5/13 492-130-28 $200,000 47,045 1.08 $4.25 6 H 7 5/22/14 481-200-31 $193,600 43,560 1.00 $4.44 M-2 PD

Vacant Land 21 250 Carver St. Shafter, CA 93263 FILE #911-14

Sale 1 is at the south side of Coberly Rd., east of Enos Ln. The lot is fully improved with curb and gutter and all utilities. Location is superior requiring a downward adjustment. Overall location is equivalent. It requires an upward adjustment for size.

Sale 2 fronts the west side of S. Beech Ave. one parcel south of the southwest corner of S. Beech and Ash Aves. It was purchased by Helena Chemical as an expansion to their existing facility which extends west to the railroad tracks and north to Ash Ave.

Sale 3 fronts the east side of Flightpath Way, north of Petrol Rd., within the North Meadows Industrial park.

Sale 4 is located at the southwest corner of James Rd. and Carrier Parkway Ave. within the Airport Commerce Center North industrial subdivision. It requires a downward adjustment for location.

Sale 5 fronts the east side of Flightpath Wy., north of Petrol Rd., within the North Meadows Industrial park.

Sale 6 is located at the easterly cul-de-sac termination of Sunnyside Ct., east of Pegasus Dr. It is rectangular in shape which restricts its utility for which a downward adjustment is required.

Sale 7 fronts the west side of Gusher Ct., south of Black Gold Rd. Although this site is near the subject, this industrial park is less desirable to the subject so that an upward adjustment is required.

In addition to the sales discussed, the following listings are applicable:

Location APN Net Site Net Site Size Asking Asking Size (Ac.) (Sq.Ft.) Price Price/Sq.Ft. Carver Rd. 091-180-16 4.66 202,990 $710,465 $3.50 Carsen Way 091-180-06 4.70 204,732 $665,379 $3.25

This listings are located in the same industrial development as the subject. Their Listing Brochure is contained in the Appraisal Addenda. Site size as reported on the listing brochure differs from the values reported on the parcel maps. Therefore, the values form the parcel maps are used and multiplied by the asking prices per square foot to achieve the asking prices above.

The parcel located on Carver Rd. is superior to the subject, as it is located one parcel to the south of Lerdo Hwy. The parcel on Carsen Way is also superior due to its location. Therefore, a downward adjustment for location is required for both listings.

Sale prices range from $1.75 to $5.94/sq.ft. and Listing Prices are $3.25 and $3.50/sq.ft. Sale 1 sets the lower level and requires an upward adjustment for size. The upper level is set by Sale 4, which requires a downward adjustment for location. Sales 3 through 6 and both listings also require a downward adjustment for location in Bakersfield. Comparison of the most recent to prior transactions indicates an upward adjustment for time is not warranted. All sales occurred for cash or on cash equivalent terms. In consideration of transactions shown, market value of the subject site is estimated at $3.00/sq.ft., as follows:

180,774 sq.ft. @ $3.00/sq.ft. = $542,322 Round to: $540,000

Vacant Land 22 250 Carver St. Shafter, CA 93263

ADDENDA

TABLE OF CONTENTS

Appraiser's Qualifications ...... 1 Engagement Letter ...... 2 Parcel Map 11468, Phase 3 ...... 3 Listing Brochure ...... 4 Sale Data Sheets ...... 5

APPRAISER’S QUALIFICATIONS

Qualifications of Michael C. Burger, MAI, R/W-AC President and Chief Appraiser Valbridge Property Advisors | Michael Burger and Associates

Independent Valuations for a Variable World

Certifications Experience CA Cert Gen AG003817 President and Chief Appraiser Michael Burger and Associates (1997 - Present) Education Bachelor of Science Agricultural Business Area Development Officer and Zone Owner Management, California Polytechnic State Zone Data Systems | Zaio Inc. (2007- Present) University Probate Referee State of California (2011 - Present) Contact Details Valbridge Property Advisors | Michael Burger & Residential and Commercial Appraiser Associates Bruce Beaudoin Real Estate Appraisers (1987 - 1997) 4915 Calloway Drive, Suite 101 Bakersfield, CA 93312 VP Finance 661-587-1010 x 101 Phone Alpha Gamma Rho – San Luis Obispo Chapter (1985 - 1986) 661-834-0748 Fax Home Builder [email protected] John K Richardson – General Contractor (1985 - 1986) www.valbridge.com

Professional Credentials Certified General Appraiser – State of California MAI – Appraisal Institute FHA Approved – U.S. Department of Housing and Urban Development R/W-AC – International Right of Way Association Probate Referee of Kern County

Civic, Volunteer and Professional Affiliations Director (2013-Present) Friend of Mercy Foundation President (1998) Bakersfield Chapter Appraisal Institute Director (2003) Bakersfield East Rotary Club President and Treasurer (Past) Executive Association of Kern County Class of 2000 Greater Bakersfield Chamber of Commerce Leadership Club Director (Past) Alpha Gamma Rho Alumni Association Director and Secretary (Past) Bakersfield Active 20-30 Club Advisory Team City of Bakersfield Planning Department – Urban Decay Guest Lecturer: Bakersfield College, Cal Poly State University, Bakersfield Board of Realtors, Executive Associate of Kern County, Kern Kiwanis, Kern County Tax Payers Association, KERN Talk Radio, McKinzie Real Estate, Watson Realty Corporation. Pro Bono Appraisal and Consulting services have been provided to the Bakersfield Police Activities League, Bakersfield Museum of Art, American National Red Cross, Habitat for Humanity, Salvation Army, and Kern Veteran’s Memorial Foundation.

Appraisal Specialties Subdivision Development, Mixed-use, Retail Centers, Professional/Medical Office, Hotel/Motel, Restaurant, Apartments, Industrial, Special Use & Going Concern, Hangars, High-rise and Low-rise Condominiums, Gas Stations, Golf Course, Auto Dealerships, Specialty Medical Facilities, Bowling Centers, Self-Storage, Single Family Residential, Right-of-Way/Condemnation, Investment Analysis, Market Studies, Feasibility & High and Best Use Analysis, Business Valuations, Partial Interest Valuations.

Real Estate Courses Rural Appraisal – Cal Poly University Real Estate Appraisal – Bakersfield College Real Estate Finance – Cal Poly University Advanced Real Estate Appraisal – Bakersfield College Principle of Real Estate – Cal Poly University Partial Interest Valuation

Appraisal Institute Courses (19 to 40 hour courses) Real Estate Principles Standards of Professional Practice A & B Basic Valuation Procedures The Appraisers Complete Review Capitalization Theory & Technical A & B Condemnation Appraising Case Studies in Real Estate Valuation Separating Real & Personal Property from Intangible Report Writing & Valuation Analysis Business Assets

International Right of Way Courses (19 to 40 hour courses) The Appraisal of Partial Acquisitions (#401) Business Relocation (#502) Eminent Domain Law (#803)

Real Estate Appraisal Seminars Understanding Limited Appraisals - General The FHA and the Appraisal Process Appraising Complex Residential Properties Appraisal of Nonconforming Uses Non-Residential Demonstration Appraisal Reports Appraisal of Nursing Facilities O.R.E.A. Federal & State Laws & Regulations Technology and the Appraisal Process Loss Prevention Program for Real Estate National USPAP Update Real Estate Appraiser Expert Witness Appraising Manufactured Housing Trends in the Hospitality Industry Litigation Seminar Valuation Considerations - Partial Acquisition Business Practices and Ethics Valuation of Detrimental Conditions Vineyard Valuation & Ag Symposium A Review of 1 – 4 Residential Form Uniform Appraisal Dataset (UAD) Internet Sources for the California Appraiser

ENGAGEMENT LETTER

PARCEL MAP 11468, PHASE 3

LISTING BROCHURE

FOR SALE FINISHED RETAIL | INDUSTRIAL LOTS LERDO HIGHWAY, Shafter, CA READY FOR DEVELOPMENT

LLerdoerdo HighwayHighway D D L L O O PARCEL 4 PARCEL PARCEL 1 PARCEL PARCEL 2 PARCEL PARCEL 3 PARCEL S SOLD PARCEL 5 PARCEL PARCEL 8 PARCEL S SOLD 1.12 Ac. Net 1.04 Ac. Net 1.12 Ac. Net 1.15 Ac. Net 40,320 SF Net 40,320 SF Net 1.29 Ac. Gross 1.59 Ac. Gross 1.06 Ac. Gross 1.06 Ac. Gross 1.29 Ac. Gross 1.61 Ac. Gross

PARCEL 10 5.00 Ac. Gross SSOLDOLD 4.70 Ac. Net d a

PARCEL 12 o

LLEASEDEASED 5.00 Ac. Gross R 4.73 Ac. Net r e k

SSUBJECTUBJECT SSOLDOLD SSOLDOLD r e PPROPERTIESROPERTIES Road Z Zerker

ZZerkererker RRoadoad d y a a o W R

r n e e s v r r a a C Carsen Way C Carver Road

PROPERTY HIGHLIGHTS Total Project Size: 40 Acres ٠ Zoning: Industrial Business Park District, City of ShaŌ er ٠ Lots 1-8: Lerdo Highway frontage ٠ UƟ liƟ es: Electric: PG&E ٠ Water: City of ShaŌ er Sewer: Lots 1-8, City of ShaŌ er Lots 9-14, SepƟ c/Dry Sewer Neighbors: ShaŌ er - Minter Airﬁ eld, Nicholas ConstrucƟ on, Dover Fluid Management ٠

STEVE D. ADAMS | Senior Vice President | 661.616.3595 | [email protected] | License # 00868370

Independently Owned & Operated 2000 OAK STREET, SUITE 100 | BAKERSFIELD, CA 93301 | 661.862.5454 main | 661.862.5444 fax The information contained herein may have been obtained from sources other than Newmark Grubb ASU & Associates. We have not veriﬁ ed such information and make no guarantees, warranties or repre- sentations about such information. It is your responsibility to independently conﬁ rm its accuracy and completeness prior to purchasing/leasing the property. FOR SALE FINISHED RETAIL | INDUSTRIAL LOTS LERDO HIGHWAY, Shafter, CA

LLerdoerdo HighwayHighway D D L L O O S SOLD S SOLD PARCEL 4 PARCEL PARCEL 1 PARCEL PARCEL 2 PARCEL PARCEL 3 PARCEL PARCEL 5 PARCEL PARCEL 8 PARCEL 1.12 Ac. Net 1.04 Ac. Net 1.12 Ac. Net 1.15 Ac. Net 40,320 SF Net 1.29 Ac. Gross 40,320 SF Net 1.59 Ac. Gross 1.06 Ac. Gross 1.06 Ac. Gross 1.29 Ac. Gross 1.61 Ac. Gross

PARCEL 10 5.00 Ac. Gross 4.70 Ac. Net SSOLDOLD y d a a o W

n r e e s v r r a a C Carsen Way

C Carver Road PARCEL 12 LLEASEDEASED 5.00 Ac. Gross 4.73 Ac. Net

SSOLDOLD SSOLDOLD

PRICE LIST

Net Parcel No. Acreage Price/SF Price

Parcel 1 1.04 $5.00 $226,512 Parcel 2 0.93 $4.00 $162,043 Parcel 3 0.93 $4.00 $162,043 Parcel 4 1.12 $4.25 $207,346 Parcel 5 1.12 $4.25 $207,346 Parcel 6 0.93 SOLD Parcel 7 0.93 SOLD Parcel 8 1.15 $5.00 $250,470 Parcel 9 4.73 SOLD Parcel 10 4.70 $3.50 $716,562 Parcel 11 4.70 LEASED Parcel 12 4.73 $3.25 $669,626 Parcel 13 4.73 SOLD Parcel 14 4.70 SOLD

STEVE D. ADAMS | Senior Vice President | 661.616.3595 | [email protected] | License # 00868370 Independently Owned & Operated 5

SALE DATA SHEETS

Location Property ID 5468 County Kern Property Name Vacant Industrial State California Address Coberly Rd. Zip Code 93263 City/Municipality Shafter Property Use Industrial Land Additional Location Info This property fronts the south side of Coberly Rd., east of Enos Ln. Land Tax Parcel Number 090-340-55, 57 (formerly 090-340-04, 090-340-36) Land Acres 12.13999 Zoning Code M-2 PD Land Sq Ft 528,818 Zoning Description General Industrial Precise Usable Land Acres 12.13999 Development Combining Usable Land Area (SF) 528,818 Shape Irregular Usable Land Percent 100.0% Topography Level Number of Lots 1 Parcel Type Interior Utilities Description Full Off Site Improvements The lot is fully improved with curb and gutter and all utilities. Sale Transaction Sale Status Closed Conveyance Document Type Grant Deed Seller Noble Howze Family Trust Recording Number 12-146367 Buyer EAT-1203, LLC Proposed Use Change? No Sale Date 10-05-2012 Sale Confirmed By Wes McDonald Recording Date 10-15-2012 Confirmation Date 12-19-2012 Sale Price $928,000 Sale ID 4410 Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $928,000 Adjusted Price Indices Adjusted Price/Acre $76,442 Adjusted Price/Acre of Usable $76,442 Adjusted Price/SF of Land $1.75 Land Adjusted Price/SF of Usable Land $1.75 Adjusted Price per Lot $928,000 UnAdjusted Price Indices Unadjusted Price/Acre $76,442 Unadjusted Price/Acre of Usable $76,442 Unadjusted Price/SF Land $1.75 Land Unadjusted Price/SF Usable Land $1.75 Unadjusted Price/Lot $928,000 Location Property ID 6239 State California Property Name Industrial Land Zip Code 93263 Address Beech Ave. MSA Bakersfield City/Municipality Shafter Property Use Industrial Land County Kern

Additional Location Info This property fronts the west side of Beech Ave., between Ash Ave. and Los Angeles St. in Shafter. Land Tax Parcel Number 028-180-71 Land Acres 4.45000 Zoning Code I Land Sq Ft 193,842 Zoning Description Industrial Usable Land Acres 4.45000 Shape Rectangular Usable Land Area (SF) 193,842 Topography Level Usable Land Percent 100.0% Parcel Type Mid-Block Number of Lots 1 Utilities Description Full Off Site Improvements Curbs and gutters are installed along the east property line. Sale Transaction Sale Status Closed Sale Price $385,666 Seller City of Shafter Conveyance Document Type Grant Deed Buyer Helena Chemical Recording Number 12-174345 Sale Date 12-05-2012 Confirmation Date 08-20-2014 Recording Date 12-05-2012 Sale ID 5284

Sale Remarks It was purchased by Helena Chemical as an expansion to their existing facility which extends west to the railroad tracks and north to Ash Ave. Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $385,666 Adjusted Price Indices Adjusted Price/Acre $86,667 Adjusted Price/Acre of Usable $86,667 Adjusted Price/SF of Land $1.99 Land Adjusted Price/SF of Usable Land $1.99 Adjusted Price per Lot $385,666 UnAdjusted Price Indices Unadjusted Price/Acre $86,667 Unadjusted Price/Acre of Usable $86,667 Unadjusted Price/SF Land $1.99 Land Unadjusted Price/SF Usable Land $1.99 Unadjusted Price/Lot $385,666 Location Property ID 6240 State California Property Name Industrial Land Zip Code 93308 Address Flightpath Way MSA Bakersfield City/Municipality Bakersfield Property Use Industrial Land County Kern

Additional Location Info This property fronts the east side of Flightpath Way, south of Imperial Ave., west of Hwy. 65. Land Tax Parcel Number 482-180-16 Land Acres 2.94995 Zoning Description Light Industrial Land Sq Ft 128,500 Shape Rectangular Usable Land Acres 2.94995 Topography Level Usable Land Area (SF) 128,500 Type of Land Industrial Usable Land Percent 100.0% Parcel Type Mid-Block Number of Lots 1 Utilities Description Full Zoning Code M-1 Off Site Improvements The property has curbs and gutters along the west property line. Additional Site Info This lot is located within a larger industrial complex known as the North Meadows Industrial park. Sale Transaction Sale Status Closed Sale Price $643,000 Seller Roll Real Estate Development LLC Conveyance Document Type Grant Deed Buyer Simmons 2000 Living Trust Recording Number 13-56192 Sale Date 04-17-2013 Confirmation Date 08-20-2014 Recording Date 04-24-2013 Sale ID 5285 Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $643,000 Adjusted Price Indices Adjusted Price/Acre $217,970 Adjusted Price/Acre of Usable $217,969 Adjusted Price/SF of Land $5.00 Land Adjusted Price/SF of Usable Land $5.00 Adjusted Price per Lot $643,000 UnAdjusted Price Indices Unadjusted Price/Acre $217,970 Unadjusted Price/Acre of Usable $217,969 Unadjusted Price/SF Land $5.00 Land Unadjusted Price/SF Usable Land $5.00 Unadjusted Price/Lot $643,000 Location Property ID 179 State California Property Name Industrial Land Zip Code 93308 Address 963 Carrier Parkway MSA Bakersfield City/Municipality Bakersfield Property Use Industrial Land County Kern

Additional Location Info This property is located at the southeast corner of Carrier Parkway and James Rd. within the Airport Commerce Center North industrial subdivision. Land Tax Parcel Number 483-220-17, 18 Land Acres 1.71951 Shape Irregular Land Sq Ft 74,902 Topography Level Usable Land Acres 1.71951 Parcel Type Corner Usable Land Area (SF) 74,902 Flood Zone X Usable Land Percent 100.0% Flood Map Number 06029C1825E Number of Lots 2 Flood Map Effective Date 09-26-2008 Zoning Code M-2 PD H Utilities Description Available Zoning Description Medium Industrial, Precise Development, Airport Approach Height Sale Transaction Sale Status Closed Sale Price $445,000 Seller Jerrol S. Felsenthal, et al Conveyance Document Type Grant Deed Buyer Townsend Enterprises, GP Recording Number 13-127488 Sale Date 08-19-2013 Confirmation Date 06-10-2014 Recording Date 08-30-2013 Sale ID 176 Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $445,000 Adjusted Price Indices Adjusted Price/Acre $258,794 Adjusted Price/Acre of Usable $258,794 Adjusted Price/SF of Land $5.94 Land Adjusted Price/SF of Usable Land $5.94 Adjusted Price per Lot $222,500 UnAdjusted Price Indices Unadjusted Price/Acre $258,794 Unadjusted Price/Acre of Usable $258,794 Unadjusted Price/SF Land $5.94 Land Unadjusted Price/SF Usable Land $5.94 Unadjusted Price/Lot $222,500 Location Property ID 180 State California Property Name Industrial Land Zip Code 93308 Address Flightpath Way MSA Bakersfield City/Municipality Bakersfield Property Use Industrial Land County Kern

Additional Location Info This property fronts the east side of Flightpath Wy., north of Petrol Rd., within the North Meadows Industrial Park. Land Tax Parcel Number 482-180-15 Land Acres 2.95156 Shape Rectangular Land Sq Ft 128,570 Topography Level Number of Lots 1 Parcel Type Mid-Block Zoning Code M-1 Flood Zone X Zoning Description Light Industrial Utilities Description Available Off Site Improvements Curbs and gutters have been installed along the west property line. Sale Transaction Sale Status Closed Sale Price $643,000 Seller Roll Real Estate Development LLC Conveyance Document Type Grant Deed Buyer Bakersfield Mineral Court LLC Recording Number 13-132660 Sale Date 09-04-2013 Confirmation Date 06-10-2014 Recording Date 09-10-2013 Sale ID 177 Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $643,000 Adjusted Price Indices Adjusted Price/Acre $217,851 Adjusted Price per Lot $643,000 Adjusted Price/SF of Land $5.00 UnAdjusted Price Indices Unadjusted Price/Acre $217,851 Unadjusted Price/Lot $643,000 Unadjusted Price/SF Land $5.00 Location Property ID 6166 State California Property Name Industrial Land Zip Code 93308 Address Sunnyside Ct. MSA Bakersfield City/Municipality Bakersfield Property Use Industrial Land County Kern

Additional Location Info This property is located at the north side of the cul-de-sac termination of Sunnyside Ct., east of Unicorn Rd. Land Tax Parcel Number 492-130-28 Land Acres 1.08001 Zoning Code M-2 PD H Land Sq Ft 47,045 Zoning Description Heavy Industrial, Precise Usable Land Acres 1.08001 Development Combining Usable Land Area (SF) 47,045 Shape Irregular Usable Land Percent 100.0% Topography Level Number of Lots 1 Parcel Type Soft Corner Utilities Description Full

Off Site Improvements The site is located within a gated section of Sunnyside Ct., adjacent to Meadows Field Airport. There are now curbs and gutters installed. Sale Transaction Sale Status Closed Sale Price $200,000 Seller Rex L Martin Trust Conveyance Document Type Grant Deed Buyer PT Vision LLC Recording Number 13-138490 Sale Date 09-05-2013 Confirmation Date 06-11-2014 Recording Date 09-20-2013 Sale ID 5214 Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $200,000 Adjusted Price Indices Adjusted Price/Acre $185,184 Adjusted Price/Acre of Usable $185,184 Adjusted Price/SF of Land $4.25 Land Adjusted Price/SF of Usable Land $4.25 Adjusted Price per Lot $200,000 UnAdjusted Price Indices Unadjusted Price/Acre $185,184 Unadjusted Price/Acre of Usable $185,184 Unadjusted Price/SF Land $4.25 Land Unadjusted Price/SF Usable Land $4.25 Unadjusted Price/Lot $200,000 Location Property ID 6241 State California Property Name Industrial Land Zip Code 93308 Address Gusher Ct. MSA Bakersfield City/Municipality Bakersfield Property Use Industrial Land County Kern

Additional Location Info This property is located at the west side of Gusher Ct., south of Black Gold Rd., and east of James Rd. Land Tax Parcel Number 481-200-31 Land Acres 1.00000 Zoning Description General Industrial Precise Land Sq Ft 43,560 Development Combining Usable Land Acres 1.00000 Shape Rectangular Usable Land Area (SF) 43,560 Topography Level Usable Land Percent 100.0% Type of Land Industrial Number of Lots 1 Parcel Type Mid-Block Zoning Code M-2 PD Utilities Description Available Sale Transaction Sale Status Closed Sale Price $160,000 Seller James J. & Jeannie A. Rich Conveyance Document Type Grant Deed Buyer James E. & Stephanie R. Hickle Recording Number 14-63098 Sale Date 05-22-2014 Confirmation Date 08-20-2014 Recording Date 06-04-2014 Sale ID 5286 Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $160,000 Adjusted Price Indices Adjusted Price/Acre $160,000 Adjusted Price/Acre of Usable $160,000 Adjusted Price/SF of Land $3.67 Land Adjusted Price/SF of Usable Land $3.67 Adjusted Price per Lot $160,000 UnAdjusted Price Indices Unadjusted Price/Acre $160,000 Unadjusted Price/Acre of Usable $160,000 Unadjusted Price/SF Land $3.67 Land Unadjusted Price/SF Usable Land $3.67 Unadjusted Price/Lot $160,000 Exhibit B

Exhibit C