RESOLUTION NO. 2363
A RESOLUTION OF CITY COUNCIL OF THE CITY OF SHAFTER SERVING AS THE SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER 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
\ryHEREAS, pursuant to Health and Safety Code Section 34173(d), the City of Shafter is the successor agency to the Shafter Community Development Agency ("Successor Agency"); and
\ryHEREAS, 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 Section 34191.5(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
\ryHEREAS, Health and Safety Code Section 34191.5(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
\ilHEREAS, 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 Section 34191.5 on April 16,2013 by way of ResolutionNo.226S; and
\ryHEREAS, 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 Resolution No.2303; and
WHEREAS, the Oversight Board of the Successor Agency approved the revised Property Management Plan on Novemb er 2I,2013 by way of Resolution No. 12; and Shafter City Council, as the Successor Agency to the Dissolved Shafter Community Development Agency Resolution 2363 September 2,2014 Page2
WHEREAS, the California Department of Finance approved the revised Property Management Plan on November 22,2013; and
\ilHEREAS, the Successor Agency approved a second revision to the Property Management Plan on April I,2014 by way of Resolution No'2325; and
WHEREAS, 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
WHEREAS, the California Department of Finance approved the second revision to the Property Management Plan on May 6,2014; and
\ilHEREAS, 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
WHEREAS, 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
\üHEREAS, 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, the Successor Agency desires to implement the that portion of the approved revised Property Management Plan pertaining to APN 091-180-18 by selling that pãicel to the City of Shafter for an amount of $540,000 and assigning the Ground Lease to the City.
NO\il, THEREFORE, THE CITY COUNCIL OF THE CITY OF SHAFTER' SERVING AS THE SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER COMMUNITY DEVELOPMENT AGENCY, DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
Section 2. Annroval the sale of APN 09 l-180-18 to the Citv of Shafter. 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. Approval of the Assignment of Ground Lease to the Cifv of Shafter. 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. Shafter City Council, as the Successor Agency to the Dissolved Shafter Community Development Agency Resolution 2363 September 2,2014 Page 3
Section 4. Proceeds from the sale. In accordance with the Property Management Plan, 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 Recognized Obligation 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 Successor Agency's oversight board for approval, and to the State of California Department of Finance.
Section 6. Effectiveness. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 2nd day of September,2014.
ATTEST (^-1*\t¿,,t^,*- Christine Vy'ilson, City Clerk EXHIBIT A
TO
RESOLUTION NO. 2363
APPRAISAL fAttached behind this cover page]
EXHIBIT A Valbridge PROPERTY ADVISORS
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 I Michael Burger & Associates
4915 Calloway Dr., Ste. 100 Bakersfield, CA 93312 Job No. 661-587-10'10 Phone Valbridge 661-834-0748 fax I'11-14
valbridge.com Valbridge PROPERTY ADVISORS Michael Burger & Associates
August L5,2014
City of Shafter 336 Pacific Ave. Shafter, CA 93263
Re: FILE #977-74 Appraisal Reqort: Vocont Land,250 Corver St., Shofter, CA 93263
Attention: Jim Zervis
Ladies and Gentlemen:
In execution of this appraisal assignment, I inspected the property referred to above on August 15' 20!4, in orderto 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 propefty rights appraised are summarized on pages 5 -7 oÍ the enclosed report. Assumptions and Limiting Conditions are stated on pages 3 - 5.
period, As a result of my investigation, it is my opinion market value based on a 6 month exposure as of August 15, 2014, is:
$540,000 (FIVE HUNDRED FORTY THOUSAND DOLLARS)
No environmental site assessment was furníshed. 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.
such Because no title policy was made available to the appraiser, he assumes no responsibility for items of record not disclosed by his customary investigation.
49I5 CALLOWAY DR., STE 101, BAKERSFIELD, CALIFORNIA93312 TEL66'1 587 IOlO F4X661.834.0748 www. bakersfìelda PPraisers. com City of Sahfter Shafter, CA 2 August t5,2OL4
This letter of transmittal is followed by the appraisal report and certification of the appraísal, further describing the subject property and contaíning the reasoning and pertinent data leading to the estimated value. your attention is directed to the "General Underlying Assumptions and Limiting Conditions" which were considered in this assignment. This letter of transmittal must remain attached to the appraisal report, which contains 23 pages plus related exhibits, in order for the value opinion set forth to be considered valid.
The value conclusion is the result of an Appraisal Report, to which your attention is directed. As a matter of policy, we request that you bring to our attention any matters of concern, mistakes or erroneous assumptions we have made in this assignment'
Sincerely,
C, Burger, -AC CA Lic. #AG003817 7-L6
MCB:sn Encl TABLE OF CONTENTS
SITE DATA.... L7 ECONOMIC.... 8 Agriculture 9 HIGHEST AND BEST USE...... 19 As Vacant...... '."...... '19
Industrial 11 METHOD OF V41UATION ...... 20
L2 SALES COMPARISON APPROACH ...... 21
coM PARABLE SALES DATA ...... 2L cERTIFrCATION...... 23
ADDENDA
1 2 3 PARCEL MAP 11468, PHASE 3...... 4 5 File #911-14
PHOTOGRAPHS
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Vacant Land 1_ 250 Carver St. Shafter, CA 93263 FIIE #911-14
SU MMARY OF SALIENT FACTS AND CONCLUSIONS
CUENT 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.: 2483/45
CENSUS TRACT 40.00
TYPE OF APPRAISAL Appraisal Report
DATE OF INSPECTION August 1-5,2014
INTEREST APPRAISED Fee Simple Estate
PURPOSE4NTENDED USE Eestimate market value so that the property can be transferred from one public agency to another
LAND AREA L80,774 sq.ft. or 4.L5 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.
FTOOD ZONE F.E.M.A. Panel No. 06029C18008i Zone "X," areas outside of annual O.2o/o 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 APPRAISAT August L5,201.4
ASSUMPTTONS AND LIMITING CON DITIONS
This appraisal, which is confined to setting forth analyses, opinions and conclusions of the propefty described herein, is subject to the following contingent and limiting conditions. The report itself may contain lÍmítíng condÍtions, qualífícatíons and dÍsclaÍmers 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 warranÇ 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 CounÇ 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 responsibiliÇ is assumed for arranging for engineering studies that may be required to discover them.
7 The properÇ 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 othen¡uise stated.
Vacant Land 3 250 Carver St. Shafter, CA 93263 FILE #911-14
10 No engineering suruey 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 properly improvements is considered to exist.
is l_ l-. No opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the property 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. t4. 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 pafty 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 entireÇ.
16. Unless othen¡¡ise 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 responsibiliÇ is assumed for any such conditions, or for any expertise or engineering knowledge required to discoverthem. The client is urged to retain an expert in this field, if desired.
L7 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.
1_8 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 mechan¡cal equipment and appliances are in good working cond¡tion; and that all electrical components and the roofing are in good condltion.
19. The appraiser has personally inspected the subject property and finds no obv¡ous 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.
2L, 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 properÇ; only the real properÇ has been considered'
Vacant Land 4 250 Carver St. Shafter, CA 93263 FItE #911-14
22 The Americans with Disabilities Act ("ADA") became effective January 26, L992. 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.
IDENTFICATTON OF SUBJECT PROPERTY
The property being appraised is vacant land located at 250 Carver St.lt is legally identified as Parcel 4, of Parcel Map 1-1468 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 L5,20L4.
Market Value: According to Federal Reserue System 12 CFR, Parts 208 and225, (Regulation H, Regulation Y; Docket No. R-0685) Appraisal Standards for Federally Related Transactions, Section 225.62 Definitions, [fl, 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;
Z. 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 ¡n 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 FrLE #911-14
Reasonable Exposure Time: According To Standords 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 markeï . Information gathered through sales verification; and . Interviews of market participants.
Marketing Time: According To The Dictionory of Reot Estate Approisol, 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: AccordingTo The Dictionary of Reot Estote Approisol, Fifth Edit¡on, 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.
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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 POPUTATION GROWTH Cities tanua¡v 2OL2 Januarv 2013 Increases % Arvin 19,849 19,960 11t_ 0.560/o Bakersfield 354,470 359,22L 4,75I L.340/o California City L3,259 13,150 ( 10s) -0.820/o Delano 52,003 51,963 ( 40) -0.08% Maricopa l_,163 1,1_65 2 0.I7o/o McFarland 12,333 L2,577 244 L.98"/o Ridgecrest 28,088 28,348 260 0.93"/o Shafter 76,927 L7,029 L02 0.60"/o Taft 8,90s 8,911_ 6 0.070/o Tehachapi t3,87L l_3,313 ( ss8) -4.02o/o Wasco 25,323 25,710 387 L.530/o Unincorporated 303,786 306,53s 2,749 0.90o/o Kern CounW Total 849,977 857,882 7,90s 0.93o/o Source: Colifornlo Deportment of Finance
As demonstrated on the preceding table, incorporated Bakersfield has exceeded the 300,000 population mark. It grew over 4O%ofrom 2000 to 2010. During the last year greatest growth has been in McFarland, Wasco, and Bakersfield.
The unemployment rate in the Kern Countywas 10.1olo in May 2014, down fromll'.4o/o in April 2074, and down from 10.9% in May 2013. This compares with an unadjusted unemployment rate of 7.lo/o for California, 7 .Oo/o in Bakersfield, and 6.30/o for the country, in May 2014'
ECONOMIC CIRCUMSTANCES
According to Milken Inst¡tute's 2013 Index of Best-Performing Cities, Kern County ranked 19th nationally, unchanged from20L2,and a significant lmprovementfrom 2}irl'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 Inst¡tute 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 Fourlh 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 fourlh quarter primarily reflected positive Vacant Land 8 250 Carver St. Shafter, CA 93263 FIIE #911-14 contributions from personal consumption expenditures, expofts, non-residential investment, inventory investment, and local government spending. These gains were paftially 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 Io 77 due to weak readings in October and November. The rate of unemployment declined from7.2 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."
"ln 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."
"ln Kern County, household perceptions remained neutral about employment and financial conditions of their families and relatives as the Bokersfield Consumer Sentiment lndex stuck at 100. Meanwhile, local businesses became less optimistic about local employment and financial conditions as the Kern County Business Outlook tndex slipped to 1-1-9 from I22."
"ln 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 942,400.'
"Labor market conditions improved in the fourlh 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 1l-.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,3l0 fewer homes were sold as sales of residential units declined from 2,186To 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 percenr. Meanwhile, the number of notices of loan default homeowners received from their moftgage bankers dropped from626 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 oà tf,. 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 vegetablás, 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 8% times more specialized in the production of farm products than the nationwide cluster.
According to the USDA News Release dated May 2,20]-4 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.ln 2012, The number of farms with a value of sales $500,000 or more increased from 8,580 in 2007 to 9,519 in 2OL2.Total farm production expenses for California increased from $27.0 billion in 20071o $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:
s.YEAR CROP SUMMARY - KERN COUNTY 2008 2009 2010 20lL 20t2
TOTAL CROP VALUE s4,033,312,000 Í3,606,498,000 $4,757,416,700 s5.596.975.600 $6,212,362,100 Value Value Value Value Value COMMODITY (Million) Rank (Million) Rank (Million) Rank (Million) Rank (Million) Rank Grapes $s61.48 2 $664.s0 1 $703.96 1 $707.s8 3 $1,498.99 1 Almonds $386.61 4 $43s.31 3 5622.97 3 5727.4L 2 $821.86 2 Mitk $601.61 1 $431.67 2 5s27.46 2 $74s.47 1 $690.06 3 Citrus $487.04 3 $332.93 s $487.42 s $s40.04 4 $620.35 4 Pistachios $191.97 8 $331.12 6 $s33.8s 6 $389.s3 6 $486.21 s Cattle $220.ss 7 $t74.22 7 $26s.3s 7 $338.s4 1 $382.91 6 Carrots $378.00 s $343.13 4 $391.s2 4 $418.74 5 $3s0.44 7 Hay (Alfalfa) $283.07 6 $106.1-4 8 $10s.16 8 $246.60 8 5273.47 8 Cotton 587.23 1L $63.21 11 $148.36 11 $L74.23 10 $L47.64 9 Potatoes $92.86 I $99.93 10 $130.e6 $100.42 1,1 $8s.10 10 .1 Silage & Forage $91.s8 1-0 $46.00 13 $83.89 72 $7s.15 11 Pomegranates $61.39 t2 $99.02 9 $114.73 10 $5s.07 L4 $s8.78 L2 18 20 $s7 s6 Nursery Crops $43.37 t7 527.46 18 142.04 $28.s9 i: Cherries $36.19 18 $96.826 12 $227.12 9 Source: Kern County Agriculturol Commissioner's Office
** NOT/N TOP 20 FOR THIS YEAR The 2012 gross value of all agricultural commodities produced in Kern County was $6,2I2,362,L00' representing an increase of $615,386,500, which is an increase of llo/o 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-Eneroy: 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 L0 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) OilField 2008 2009 2010 20lL 20L2 Midway-Sunset 36.3 34.2 32.4 30.6 29.3 Kern River 29.5 29.7 27.4 26.8 26.2 Belridge, South 32.5 29.5 26.5 25.2 23.6 Elk Hills 74.9 r.3.8 t4.7 L4.2 1_4.0 Cymric 18.0 r_8.3 15.5 13.1 13.6 TOTAL 13t.2 t24.9 115.9 109.9 L06.7 Source: Preliminory Annual Report of the Stote O¿I ond Gas Supervisor, Colifornia Deportment of Conservotion
According to the Department of Conservation, Division of Oil, Gas and Geothermal Resources, in its 201-2 preliminary Report of California Oil and Gas Production, California's overall oil production rate increased slightly in 20L2, 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 201-1 and the state offshore area increased 6.2 percent from 201-1. 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/lndustrial: 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 Transporlation Center (ITTC) is situated on a 702-acre parcel at 7th Standard Road and Hwy. 43, within the city limits of Shafter, approximately L0 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 distributlon warehouse, containing approximately 900,000 sq.ft., on an approximate 8O-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 Colifornian, pp. 81, 84.
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 2014is summarized on the following table:
Kern County CÍties.' Median House Prí,ces Cities # Sold Apr-14 Apr-13 ARVIN 13 $137,000 $1-29,s00 5.79o/o BAKERSFIELD 658 $200,000 $178,2s0 12.20o/o BUTTONWILLOW 2 $60,000 n/a n/a CALIFORNIA CITY 19 $6s,000 $67,500 -3.70o/o DELANO 22 $130,000 $1s7,000 -I7.20o/o FRAZIER PARK 5 $80,000 $119,s00 -33.05%o INYOKERN 2 $206,s00 $14s,000 42Ar% KERNVILLE 3 $22s,000 $1ss,000 45.L6o/o LAKE ISABELLA 7 $60,000 $102,000 -4L.L8o/o LAMONT 6 $79,000 $38,s00 705.19o/o MC FARLAND 6 $199,s00 $179,s00 tL.L4o/o RIDGECREST 46 $119,000 $140,000 -15.00% ROSAMOND 31 $169,000 $131,000 29.jL%o SHAFTER 11 $1s0,000 $130,000 1538% TAFT 21. $s9,000 $107,s00 -45.L20/o TEHACHAPI 44 $200,000 $170,000 L7.650/o WASCO 8 $168,2s0 $137,s00 22.360/o Kern County 931 $174,500 $1s0,000 L6.33o/o 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 11-0 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 airpofts, 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 Mountalns 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 20-11-5'. Average temperature is 65'. Average annual rainfall in the valley is 5-6 inches and in the mountains, 10- 40 inches.
Vacant Land 72 250 Carver St. Shafter, CA 93263 'l oeLoRme Delorme Street Atlas USA@ 2010
Area Map
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,ì rl ul ¡r >t ;L ¡l I, {I lr I 1i I ol d ii o ú, j zl t ù d, I I ri l gURBANK 5T BURBANK ST Data use subject to license n O DeLorme DeLorme Street Atlas USA@ 201 0 ti{tafE) www delorme com L 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 lhe Kern Economic Journol, 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 quafter of 2013. Kern's economy expanded 3.2 percent in the previous quafter and L.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 $+2,qOO 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. 3/c Lerdo Hwy. is a major east-west arterial interconnecting with Hwy. 99, mile to the east and extends I/t through Interstate 5, 20 miles to the west. Terker Rd., from the nor1h, terminates into Ledo Hwy 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, l-2 miles to the south. Vacant Land 13 250 Carver St. Shafter, CA 93263 FILE #911-14 POPU LATION- DEMOG RAPHIC DATA According to the U.S. Census Bureau, the most recent demographics for the City of Shafter are summarized as follows: Populat¡on PoÞulat¡on bv ale 8. Female Hous¡ng Status Under 18 6.121 | ¡n housino units unless noted 18& r 10. 4,521 20 -24 1 4,230 25 -U 2,471 35-49 50-&Í I 9,55i 65 & over 1.1 1,75S Population bv Race 8"150 6,77. American 219 an 111 2,583 rican lndian and 198 291 aska I'latit¡e and 13( Native Hawaiian 1! Pacific lslander Other 7"64{ two or more 64€ 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 air-field, 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 1.4 250 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 convefted 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 Airporl District recently developed approximately L1 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-ar1 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 newspaperto 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 terr¡tory, 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 L,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, Weather{ord, 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 nofth, with vacant parcels adjacentto 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 410 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. Bidaft 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 Terker 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 oel-18 sEc. 16 T.28S. R.26E. oel-1 E d I ñ 66 N I'- 2@' @ 5.Á1, ,d Gò 4.ffic c(2) 66 ,p Ø 4.q!)6|AC 4, LÐGEND SUBÐ. KEY DISCI.AIMER RÉF. SUEO REVISEO À Pc 11466 fr 1 lbrch 5, zOOE I PM ll{64 Ph 2 c Pu il468 Pfi 3 JURTS0TCI|ON qfr oF srffiER (LOT DES|CMÍIOIIS Iß PARENI}IESIS) & vctilrTl ASSESSORS MAF NO. oq1-1R COUNTY OF KERN FIIE #911-14 Minter Field Airport, containing approximately I,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 L1. small office businesses and commercial uses at the airpoft. 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 l'4-18%, 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. 09r.-180-18 LEGAL DESCRIPTION Parcel 4, of Parcel Map 1L468 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 properly 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 properly 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 f¡.;,r4ì'r; l, lr ir. i.' i I 'r'r' I .6- tu ,d l ] .Ë, -¡ -*_j.__l t .: fr ,!tt '¡a ì\ et î' c Ø': a |cî ìD_ t :--Ë.t+iut? tËåü¡ rl *_ 'lq e.,¡lk, 4* ì iÈ¡ E EffiM I'o rû?f.Jlt=.jqri. " { l}, ¡ .: ,1"' .F0.@ ': 'oPj; r¡. : a E , i. 1l { il- :'. ! :- { ,| '' ¡ :'. I E e a fJ' :rD¡;*..'. , -.. t;r-l.f .J-. - ..- i:. - - - ' i- _:- f .r¡ .&É¡¡ir < .rb . !-¡ _--_.__, ¡ : nl,*+.. È .ì-,i - %@ I $ J-1r# :- Ai så+ËE#l=; d :¡t- -.h I l} j.1 I rì f'til-'=-' I r dt-_-ta I I & r-¡'l¡¡l¡ti¡¡.¡,L.. 'Å 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.L5 ac. or L80,774 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 Ut¡Uties Street lmprovements Water Municipal Curb Concrete Sewer None Gutter Concrete Gas Southern California Gas Sidewalk Concrete Electricitv Pacific Gas and Electric Pavinq 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 ¡t 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 d¡ssolved 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 Tone 4 of the uniform Building code, which is in consideration of earlhquake hazards associated with California. ENVIRONMENTAT 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 \ city ol Shafter Zoning EJ"orm å;;¡ @æM Zo0lo¡ tËdl ZE n- H¡@¡Fdrgûdå.l!ÌrCdüÉe IAÁclu E rcr¡riCffidM I mrguær¡otlpô Hcrcr odüle ru læerl.r¡ Þlwhryffi I m arrr* mpt^eFd HdÉ cñil¡ k I6cdüqFù ri' I x r \hL* I I IF I ft FILE #911-14 suggest the possibility of presence of such substances should not be taken as conf¡rmation of presence of hazardous waste or toxic materials. Such determination would requ¡re investigation by a qualified expert in the field of environmental assessment. No responsibility is assumed for any environmental conditions, or for any expertise or engineerlng knowledge requ¡red 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. 06029c1-800E, effective september 26,2008, the property is located in a lone "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 1L468, 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 reosonably probable and legdl use of vacant land or an improved propefi' whích Ís physicalty possíbte, dppropriately suppofted, findncÍally fedsÍble, dnd that results ín the highest volue. The four criteríd the highest and best use must meet dre legol permÍssíbÍlíty, physÍcal possÍbilÍty, financÍal feasíbíIÍty and moxÍmum productívity." Highest ond Best Use of Lond or a Site as Though Vocont "Among oll reosonable, olternotive uses, the use thot yields the highest present lond volue, ofter poyments ore mode for labor, copitol, ond coordinotion. The use of o property based on the ossumption that the parcel of lond is vocont or con be made vocont by demolishing ony improvements." Highest and Best Use of Proper\t as Improved "The use that should be mode of o property os it exisfs. An existing improvement should be renovoted or retaíned as is so long as it continues to contribute to the totol morket volue of the property, or until the return from a new improvement would more thon offset the cost of demoltshing the existing building ond constructing o 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. Zewis, 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 1_9 250 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 FEASIBTE-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. lncome 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 propert¡es 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 comparlson. 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 -4 oelonmn DeLorme Street Atlas USA@ 2010 Site Sales Map Sale Sale 7 Sale Sale il Scale Data use subject to license O DeLorme DeLorme Street Atlas USA@ 2010 uìo¿fr) www delome com l 1"=f97mi Data FILE #911-14 SALES COMPARISON APPROACH COMPARABTE 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 lnstrument Sale Recorded Grantor Grantee Location Ln. 1 10/ß/L2 t2-1.46367 Noble Howze Family Trust EAT 1203 LLC Coberly Rd., E. of Enos 2 12/s/L2 L2-I74345 City of Shafter Helena Chemical Beech Ave., Shafter Simmons Family 2000 Living Roll Real Estate WY 3 4/27/13 13-65332 North Meadows - Flightpath Development LLC Trust Jerrold Felsenthal et al Townsend Ents. ACCN - 4 8/30/L3 73-127488 963 Carrier Parkway Roll Real Estate Bakersfield Mineral Court, North Meadows - FlightPath WY 5 9/70/t3 13-1_32660 Development LLC. LLC Rex L Martin Revocable PT Vision, LLC Sunnyside Ct. 6 9/20/L3 L3-1 38490 Trust James Rich and Jeannie Rich James Hickle and Stephanie Gusher Ct. 14-63098 7 6/4/L4 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. 1 r0/s/L2 090-340-s5 & s7 $928,000 528,8L8 12.1,4 $r_.7s M-2 PD 2 t2/s/I2 028-780-7L $38s,666 793,842 4.45 $1.99 GC 3 4/77 /73 482-t80-L6 $643,000 L28,500 2.95 $s.oo M-1 M-2 PD 483-220-L7, 18 $44s,000 74,902 L.72 $s.94 4 8/L9/L3 H 5 9/4/L3 482-180-15 $643,000 L28,570 2.95 $s.oo M-1 M-2 PD 9/s/L3 492-L30-28 $200,000 47,045 1.08 $q.zs 6 H 7 5/22/L4 481-200-3L $193,600 43,560 r..00 5+.cq M-2 PD Vacant Land 2t 250 Carver St. Shafter, CA 93263 FILE #911-14 Sale L 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 nofth 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 Aski ng Aski ng Size (Ac.) Ft.) Prrce Pric Ft Caruer Rd. 09r_-r_80-16 4.66 202,990 $710,465 $3.s0 Carsen Way 091-180-06 4.70 204,732 $66s,379 $3.2s 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 $5.9alsq.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 FILE #911-14 CERTFICATION I certify that, to the best of my knowledge and beliel ... 1, The statements of fact contained in this report are true and correct, 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of th¡s report, and no personal interest or bias with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or the parties involved with the assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. Conclusions are not subject to approval of a loan. 6. My compensation for completing this assignment is not contingent upon reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), adopted by the Appraisal Foundation, minimum appraisal standards mandated by Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), the Code of Eth¡cs and the Standards of Professional Practice of the Appraisal Institute. L The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representat¡ves. 9. I have made a personal observation of the property that is the subject of this report' 10. I have not performed a previous appraisal or performed professional services involving the subject property within the three years prior to the acceptance of this assignment. 11. As of the date of this report, I, Michael C. Burger, MAI, RA,V-AC, have completed requirements of the continuing education program of the Appraisal Institute and I have completed the Standards and Ethics Education Requirement oi the Appraisal Institute for Associate Members, I am a Certified General Appraiser, per the Office of Real Estate Appraisers, State of California, license number AG003817. 12. No one provided significant professional assistance to the person signing this report except Sydni Nicolici. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which he is connected, or any reference to the above appraisal organizations and designations) shall be disseminated to the public through advertising media, public relations media, news media, salei media or any other public means of communication, or to any other third parties, without the prior written consent and I of the undersigned. APPRAISER l l ( MichaelC. MAI, RAru-AC #CA 4G00381-7 - ExP. 5-L7-16 Vacant Land 23 250 Carver 5t, Shafter, CA 93263 ADDENDA TABLE OF CONTENTS 1 APPRAISER'S QUALIFICATIONS Qualifications of Michael C. Burger, MAI, RAV-AC President and Chief Appraiser Valbridge Properly Advisors I Michael Burger and Associates tndependent Valuations for a Variable World Certifications Experience CA Cert Gen 4G00381.7 President and Chief Appraiser Michael Burger and Associates (L997 - Present) Education and Zone Owner Bachelor of Science Agricultural Business Area Development Officer Inc. (2007 - Present) Management, California Polytechnic State Zone Data Systems I Zaio University Probate Referee State of California (2011 - Present) Contact Details Valbridge Property Advisors I Michael Burger & Residential and Commercial Appraiser Associates Bruce Beaudoin Real Estate Appraisers (L987 - L997) 4915 Calloway Drive, Suite 101 Bakersfield, CA 93312 VP Finance 661-587-1010 x 101 Phone Alpha Gamma Rho - San Luis Obispo Chapter (1985 - L986) 661--834-0748 Fax Home Builder mburger@val bridge.com 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 RA/V-AC - International Right of Way Association Probate Referee of Kern CountY Civic, Volunteer and Professional Affiliations Director (20l3-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 Appraisallnstitute 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 Propefty 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 N on -Residentia I 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 L - 4 Residential Form Uniform Appraisal Dataset (UAD) Internet Sources for the California Appraiser 2 ENGAGEMENT LETTER Valbridge PROPERTY ADVISORS Michael Burqer & Âssociates July 30, 2014 VIA EMÁIL ; [email protected] Jim Zervis City of Shafter Re; Aopraisal Fee and Time Estimate: 250 Carver Street, Shafter, CA - APN 091-180-18 Dear Mr. Zervis, Relative to your recent inquiry, the cost for an Appraisal Report of the above referenced property will be $2,800 for investigation and appraisal services. The Appraisal Report will be for real estate only. I will provide you with an electronic copy of the report, to include exhibits and addenda, I anticipate delivery of the report within four weeks, provided that the information requested herein is received in a timely manner. The report will present summary discussions of the data, reasoning, and analysis that were used in the appraisal process to develop the value estimate. Supporting documentation will be retained in my file, and the depth of discussion will be specific to your needs and the intended use, I am not responsible for its unauthorized use. The purpose of the appraisal will be to provide you with a supportable and credible estimate of the as-is market value of the fee simple estate. The report will be prepared in accordance with the Uniform Standards of Professional Appraisal Practice and Supplemental Standards of Professional Appraisal Practice and Code of Professional Ethics of the Appraisal lnstitute. 4915CALLOWAYDR,,STE, lol,BAKERSFtELD,CAL|FORNtA93Sl2 TE1 66 1.587,1010 FAX661.834.0748www.bakersfìeldappraisers.com Mr, Zervis '2- JulY 30' 2014 A copy of the Assumptions and Limiting Conditions and Certification that will be part of the åópraisal work fiie and report are attached, Please understand that the terms, provisions and conditions contained within the body of this letter along with your iignature below, constitute our agreement regarding the appraisal of the above-described properties. I would appreciate your transmittal of as much of the following as possible upon the notification to proceed, . Contact name and number for access to the property please indicate your acceptance of the terms of this appraisal engagement by signing and dating this letter, as indicated below. Sincerely, MichaelC. Burger, MAl, RAIV-AC CA Lic. #AG003817 MCB:kc Encls. < Signature Date lzolt,( 4915 CALLOWAY DR. #101, BAKERSFIELD, CALIFORNIA 93312 TEL 661.587.1010 FAX 661.834.0748 www. bakersfleldaPPralsers.com J PARCEL MAP 11468, PHASE 3 \ PARCEL MAP NO. 11468 PHASE 3 \ CONSISf]NG OF 2 SHEETS IM IHE CITY OF SHAFITR LEOEIÐ CONIÁINING 16,6I ACRES 4 PÀRCELS ABAI.IDOT.IMEHI NOÏE . tcEro HlrÄiuÉ*l n€y-$g{¡ tffi FfCCß0^Tltq tf ttil1 c,\P, p(fr:Ét{S ¡J,:Lð{l 9¡!1 AID (-(RS4{ fl¡Y (m ^ ^ç ãÊe Ê(t¡$Y 1Ä0 RO. rlû. l:55). Àt CICLADSI lcucr'f h$¡09 9fâ ÙC¡¡'! 0f Sl.plqttgdlFS uhul! È , frþr,ó 1' Éft ¿fr tuo Âr,0 8nas5 ,,ttuuÉ a(tifilÈ¡çt v¡FrltÞ ì< ¡Bf' trl FNür Up ilâ ll{ËS ä¡¿.Ë I B4{( 1!, ¡Ás{ 196. u{! eË ¡B4ll){À€o I 4r s€{Tlcft p¡(¿iJ9¡"0 664¡lt) S Êt 5¡r8ülllr:r{ uÆ Àtf P^¡i'¿r r{-.¡ s¿{rr¡:[, å¡- I . f(4h0 tl2'iià¡Ê d!r{ Ftt5:.€ c- u¡nxEo "t; a5t¡' r{olEt¡ ñR ¡¡fttt u# rO. 11rÉS FqátE r. s¡ff'Ctl u(D 8001( Fr-tkf &l,.SS I1l' url'.¡3 t S tJ¿.l .[ 8t :fI rrt tcçTl Li l(¡P (f lI pr "l ¡;rii-lL I \4 I .l gls \Ì .[s \-{e $sti?rê'[ 'ot  :a1 ÈÊtÈr r s L '.r r atfilra t.\-_ ; ,4¿\l PAHCEL 2 al $ tor (%!i a(¡{s ;ì I --1"-Y¡ . e! (u!f ratrl þltLr Ì &Éfå? itrl ü r¡l J d 4l vf f@ ú' i@E @Ærr tfl F¡s cú ltuD ^É 4!' ñffi & r1.U ¡. P4[ q4 Feí.FÞt: r+ r¡4!q R +ig \ ^s¡-'. rf !À l rh il ai3 rù(, tt EÊ: S -lEq Eif '(o28Ê 66È I ñÊE: PARCEL 3 > !:: r& (e555) G !57 ¡ rr lED ^ñ(! ^(s5 ()< gleilã' t u,l !æft'lt'E &0 i+ -¡ Fi)t PARCEL ¡t :-iiir:ir, ls (tr6r1 ¡c¡E5 ¡ 1tt (ctl fr! å $K^rf iffi f to! ¡ * n$ 4 tæ ô'ffiE fr{Nf rft nas Ir r'!49 lr .)tr i t5lq( Ea rÆft 14 { r!4 k{ r. Ffrft æårÆt¡g.e "* -,,- r!n s 6gcÍo slrìE€r ril i¡¡ôl Ìr sÉÈt4/ !€ ir rQT I DIl^a'A' I prncel t lJ I zl ùt I PAFCEL 2 ---.fcRuEft S¡ìEET2 tr2 *iEEfs q(4Q 4 LISTING BROCHURE PROPERTY H IG . Total Project Size: 40 Acres . Zoning: lndustrial Business Park District, City of Shafter . Lots 1-8: Lerdo Highway frontage . Utilities: Electric: PG&E Water: CitY of Shafter Sewer: Lots 1-8, CitY of Shafter Lots 9-14, SePtic/DrY Sewer Management . Neighbors: shafter - Minter Airfield, Nicholas construction, Dover Fluid Newmark Grubb president License # 00868370 ASU &Assoclates STEVE D. ADAMS I Senior Vice | 661.616.3595 | [email protected] I main 2OO0 OAK STREET, SUTTE 100IBAKERSFIELD, CA93301 1661.862.5454 1661.862-5444Íax lndepondently Owned & OPerated guarantees' wananties or repre- ASU & Associates. We have not verilìed such infomation and make no The information contained herein may have been obtained from souræs oher than Newmark Grubb its accuracy and completeness prior to purchasing/leasing the property. sentations about such infomat¡on. ltis your responslDlllty dóiriàepén¡äúi ónlrm FTNISHED RETAIL I INDUSTRIAL LOTS LERDO HIGHWAY Shafter, CA Mbw ¡ 8- . pg I o99 d('; I d('; (, d; I ¡ iñÈ ¡ ËËälË;AlÈ¡¡l*i Ëãt I ça J ---r---L--- PARCEL 10 5.00 Ac. Gross 4.70 Ac. Net E s Ë PARCEL 12 I 5.00 Ac. Gross 4.73 Ac. Net ¿N PRICE LIST Net Parcel No. Acreage Price/SF Price Parcel l- r.o4 ss.oo 5226,s1,2 Parcel 2 0.93 s4.oo 5162,o43 Parcel 3 0.93 s4.oo 5L62,o43 Parcel 4 L.r2 54.2s 5207,346 Parcel 5 1.12 54.2s 5207,346 Parcel 6 0.93 SOLD Parcel 7 0.93 SOLD Parcel 8 1.15 Ss.oo 5250,47O Parcel 9 4.73 SOLD Parcel L0 4.70 Sg.so 57L6,562 Parcel 11 4.70 LEASED Parcel L2 4.73 Sg.zs s669,626 Parcel 13 4.73 SOLD Parcel 14 4.70 SOLD Newmarl< Grubb ASU&Associates License # 00868370 lndependently Owned & OPerated STEVE D. ADAMS I Senior Vice President | 661 .616.3595 | [email protected] I 5 SALE DATA SHEETS Location Property lD 5468 County Kern Property Name Vacant lndustrial State Californ¡a Address CobefY Rd. Zip Code 93263 City/Municipality Shafter Property Use lndustrial Land Additional Location lnfo Ïhis property fronts the south side of Coberly Rd., east of Enos Ln Land Tax Parcel Number O90-340-55,57 (formerly 090-340-04, 090-340-36) Land Acres 12.13999 Zoning Code M-2 PD Land Sq Ft 528,818 Zoning Description General lndustrial Precise Development Combining Usable Land Acres 12.13999 Shape lrregular Usable Land Area (SF) 528,818 Topography Level Usable Land Percent 100.0% Parcel Type lnterior Number of Lots 1 Utilities Description Full Off Site lmprovements The lot is fully improved with curb and and all utilities. Sale Transaction Sale Status Closed Conveyance Document TyPe Granl Deed Seller Noble Howze Family Trust Recording Number 12-146367 Buyer EAT-1203, LLC Proposed Use Change? No Sale Date 10-o5-2012 Sale Confirmed BY Wes McDonald Recording Date 10-15-2012 Confirmalion Date 12-19-2012 Sale Price $928,000 Sale lD 4410 Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $928,000 Adjusted Price lndices Adiusted Price/Acre $76,442 Adiusted Price/Acre of Usable $76,442 Land Adjusted Price/SF of Land $1.75 Adjusted Price per Lot $928,000 Adjusted Price/SF of Usable Land $1.75 UnAdjusted Price lndices Unadjusted Price/Acre $76,442 Unadjusted Price/Acre of Usable $76,442 Land Unadlusted Price/SF Land $1.75 Unadjusted Price/Lot $928,000 Unadjusted Price/SF Usable Land $1.75 Location Property lD 6239 State California Property Name lndustrial Land Zip Code 93263 Address Beech Ave. MSA Bakersfield City/Municipality Shafter Property Use lndustrial Land CountY Kern Additional Location lnfo This fronts the west side of Beech Ave., between Ash Ave. and Los Angeles St. in Shafter Land Tax Parcel Number 028-180-7'l Land Acres 4.45OOO Zoning Code I Land Sq Ft 199,842 Zoning Description lndustrial Usable Land Acres 4.45000 ShaPe Bectangular Usable Land Area (SF) 199,842 Ïopography Level Usable Land Percent 1OO.O% Parcel TYPe M¡d-Block Number of Lots 1 Ut¡lities Description Full Oft Site lmprovements Curbs and gutters are installed along the east property line. Sale Transact¡on 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 Confirmat¡on Date 08-20-2014 Recording Date 12-05-2012 Sale lD 5284 Sale Remarks lt 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 lndices Adlusted Price/Acre $86,667 Adjusted Price/Acre of Usable $86,667 Land Adjusted Price/SF of Land $1.99 Adjusted Price per Lot $385,666 Adjusted PriceiSF of Usable Land $ 1 .99 UnAdjusted Price lndices Unadjusted Price/Acre $86,667 Unad¡usted Price/Acre of Usable $86,667 Land Unadjusted Price/SF Land $1.99 Unad¡usted Price/Lot $385,666 Unadjusted Price/SF Usable Land $1.99 Location Property lD 6240 State Cal¡fornia Z¡p 93308 Property Name lndustrial Land Code Address FlightPath WaY MSA Bakersfield lndustrial Land City/Municipality Bakersfield Property Use CountY Kern west of Hwy. 65 Additional Location lnfo This property fronts the east side of Fl¡ghtpath WaY, south of lmperial Ave., Land Tax Parcel Number 482-1 80-1 6 Light lndustrial Land Acres 2.94995 Zoning DescriPtion shape Rectangular Land Sq Ft 128,500 Topography Level Usable Land Acres 2.94995 of Land lndustr¡al Usable Land Area (SF) 128,500 TYPe Mid-Block Usable Land Percent '1OO.O% Parcel TYPe Description Full Number of Lots 1 Utilities Zoning Code M-1 Off Site lmprovements The property has curbs and gutters along the west property line' Meadows lndustrial park. Additional Site lnfo This lot is located within a larger industrial complex known as the North Sale Transaction Sale Status Closed Sale Price $643,000 Deed Seller Roll Real Estate Development LLC Conveyance Document Type Grant Buyer Simmons 2000 Living Trust Recording Number 13-56192 08-20-2014 Sale Date 04-17-2013 Confirmation Date 5285 Record¡ng Dale o4-24-2013 Sale lD Analysis of Sale TYPical Property Rights Conveyed Fee Simple Conditions Price Financing Terms Cash to Seller Adjusted Sale $643,000 Ad¡ usted Price lndices Adjustecl Price/Acre $217'97O Adiusted Price/Acre of Usable $217'969 Land Adjusted Price/SF of Land $5.00 Ad¡usted Price Per Lot $643,000 Adiusted Price/SF of Usable Land $5'00 UnAdju sted Price lndices of Usable Unadiusted Price/Acre $217'97O Unadiusted Price/Acre $217'969 Land Unad¡usted Price/SF Land $5'00 Unadiusted Price/Lot $643,000 Unad¡usted Price/SF Usable Land $5.00 Location PropertylD.lTgStatecaliforn¡a Property Name lndustrial Land Zip Code 93308 Address 963 Carrier Parkway MSA Bakersfield City/Municipality Bakersfield Property Use lndustrial Land County Kern Add¡tional Location lnfo This property is located at the southeast corner of Carrier Parkway and James Rd. within the Airport Commerce Center North industrial subd¡vision. Land Tax Parcel Number 483-220-17,18 lrregular Land Acres 1 .71951 ShaPe 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 lndustrial, Precise Development, Airport Approach He¡ght Sale Transaction Sale Status Closed Sale Price $445,000 Seller Jerrol S. Felsenthal, et al Conveyance Document Type Grant Deed Buyer Townsend Enterprises, GP Becording Number 13-127488 Sale Date 08-19-2013 Confirmation Date 06-10-2014 Becording Date 08-30-2013 Sale lD 176 Analysis Property Bights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $445,000 Adjusted Price lndices Adiusted Price/Acre $258,794 Adlusted Price/Acre of Usable $258,794 Land Adiusted Price/SF ot Land $5.94 Adiusted Price per Lot $222,500 Adjustecl Price/SF of Usable Land $5.94 UnAcli usted Price lndices Unad¡usted Price/Acre $258,794 Unadlusted Price/Acre of Usable $258,794 Land Unadjusted Price/SF Land $5.94 Unadjusted Price/Lot $222,5OO Unadjusted Price/SF Usable Land $5.94 Location Property lD 180 State California Property Name lnduslrial Land Zip Code 93308 Address Flightpath Way MSA Bakersfield C¡ty/Munic¡pality Bakersfield Property Use lndustrial Land County Kern Additional Location lnfo Th¡s property fronts the east side of Flightpath Wy., north of Petrol Rd., within the NoÍth Meadows lndustrial 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 Descript¡on Light lndustrial Utilities Description Available Ofl Site lmprovements Curbs and have been installed along the west line. Sale Transact¡on Sale Status Closed Sale Price $643,000 Seller Roll Real Estate Development LLC Conveyance Document Type Grant Deed Buyer Bakerstield Mineral Coud LLC Recording Number 13-132660 Sale Date 09-04-2013 Confirmation Date 06-"10-2014 Recording Date 09-10-2013 Sale lD 177 Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adiusted Sale Price $643,000 Adjusted Price lndices Adjusted Price/Acre $217,851 Adjusted Price per Lot $643,000 Adjusted Price/SF of Land $5.00 UnAdjusted Price lndices Unad¡usted Price/Acre $217,851 Unadiusted Pr¡ce/Lot $643,000 Unadjusted Price/SF Land $5.00 Location Property lD 6166 State California Property Name lndustrial Land Zip Code 93308 Address Sunnyside Ct. MSA Bakersfield City/Mun¡cipal¡ty Bakersf ield Property Use lndustrial Land County Kern Additional Locat¡on lnfo 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 lndustrial, Precise Development Combining Usable Land Acres 1.08001 Shape lrregular Usable Land Area (SF) 47,O45 Topography Level Usable Land Percent 100.0% Parcel Type Soft Corner Number of Lots 1 Utilities Descript¡on Full Off Site lmprovements The site is located within a gated section of Sunnyside Ct., adiacent to Meadows Field Airport. There are now curbs and gutters installed Sale Transact¡on 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 lD 5214 Analysis Property Rights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adiusted Sale Price $200,000 Adjusted Price Indices Adlusted Price/Acre $185,184 Adjusted Pr¡ce/Acre of Usable $185,184 Land Adlusted Price/SF of Land $4.25 Adjusted Price per Lot $200,000 Adjusted Price/SF of Usable Land $4.25 UnAdjusted Price lndices Unadjusted Price/Acre $185,184 Unad¡usted Price/Acre of Usable $185,184 Land Unadjusted Price/SF Land $4.25 Unadjusted Price/Lot $200,000 Unadjusted Price/SF Usable Land $4.25 Location Property lD 6241 State California Property Name lndustrial Land Zip Code 93308 Address Gusher Ct. MSA Bakersfield City/Municipal¡ty Bakersf ield Property Use lndustrial Land County Kern Add¡tional Location lnfo 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 lndustrial Precise Development Combining Land Sq Ft 43,560 Shape Rectangular Usable Land Acres 1.00000 Topography Level Usable Land Area (SF) 43,s60 Type of Land lndustrial Usable Land Percent 100.0% Parcel Type M¡d-Block Number of Lots 1 Utilities Description Available Zoning Code M.2 PD Sale Transact¡on 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 Confirmalion Date 08-20-2014 Recording Date 06-04-2014 Sale lD 5286 Analysis Property Bights Conveyed Fee Simple Conditions of Sale Typical Financing Terms Cash to Seller Adjusted Sale Price $160,000 Adjusted Price lndices Adjusted Price/Acre $160,000 Ad¡usted Price/Acre of Usable $160,000 Land Adjusted Price/SF of Land $3.67 Adjusted Price per Lot $160,000 Adjusted Price/SF of Usable Land $3.67 UnAdjusted Price lndices Unadjusted Price/Acre $160,000 Unad¡usted Price/Acre of Usable $160,000 Land Unadiusted Price/SF Land $3.67 Unadjusted Pr¡ce/Lot $160,000 Unadjusted Price/SF Usable Land $3.67 EXHIBIT B TO RESOLUTION NO. 2363 AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS [Attached behind this cover page] EXHIBIT B AGRE,EMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS THIS AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS (,,Agreement") is dated for reference purposes as of this 2nd day of September,2014, by and between THE SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER COMMUNITY DEVELOpMENT AGENCY, a public entity ("Seller"), and the CITY OF SHAFTER, a California municipal corporation ("Buyer"). This Agreement is made with reference to the following facts: RECITALS A. Seller is the Successor Agency ("Agency") to the Shafter Community Development Agency ("CDA"). Seller is the owner of certain real property located in the City of Shafter, Kern County, Califomia, more particularly described in Exhibit "4" attached hereto ("Agency Property"). B. Recent California legislation has resulted in the disestablishment of the CDA. The sale and conveyance of the Agency Property to Buyer requires the approval of Seller's oversight board ("Oversight Board") and the California Department of Finance (r'DOF"). Such approvals have been obtained, as set forth herein. C. Buyer desires to purchase and acquire the Agency Property from Seller and Seller desires and is authorized to sell and convey the Agency Property to Buyer. THE PARTIES THEREFORE AGREE AS FOLLOWS: 1. Purchase and Sale. Upon the terms and conditions described below, Buyer agrees to purchase and Seller agrees to sell and convey the Agency Property to Buyer. 2. Purchase Price. The purchase price for the Agency Property is Five Hundred Forty Thousand Dollars ($540,000.00) ("Purchase Price"). 3. Payment of Purchase Price. Buyer will pay the Purchase Price to Seller in immediately available funds (cash, cashiers or certified check or wire transfer of funds) through Escrow. 4. Title. 4.1 Preliminary Title Report. Buyer and Seller have obtained and Buyer has reviewed a preliminary repoft prepared by Ticor Title Company of California ("Title Company"), Title No. FTKE-3011400413SC, dated as of August 13, 2014 ("Report"). Buyer approves the status of title as disclosed in the Report. 4.2 Title Policy. At Close of Escrow (as defined below), Seller will convey good and marketable title to the Agency Property to Buyer as evidenced by a CLTA Standard 1 l 7236.00000\91 887 I 9. I Form Owners Policy of Title Insurance ("Title Policy"), issued by the Title Company in an amount equal to the Purchase Price, subject to the title exceptions described therein. 5. Escrow. 5,1 Escrow Instructions. This Agreement shall constitute instructions of Buyer and Seller to Ticor Title Company of California which is hereby named as the Escrow Hoider for this purchase and sale. ("Escrow Holder"). Escrow Holder is located at 10000 Stockdale Highway, Suite 101, Bakersfield, CA 93311. The parties agree to execute such additional pro forma instructions as Escrow Holder may reasonably require; however, in the event of a conflict, the terms and provisions of this Agreement shall govern. 5.2 Opening of Escrow. Upon execution of this Agreement, Buyer and Seller shall cause an escrow to be opened with Escrow Holder by depositing with Escrow Holder a fully executed copy of this Agreement. Escrow shall be deemed opened as of the date this Agieement is deposited with Escrow Holder ("Opening of Escrow" and the date thereof, the "Opening Date"). 5.3 Close of Escrow: Closing Date. "Close of Escrow" shall mean the date on which the Grant Deed conveying title from Seller to Buyer is recorded in the Offlrcial Records of the County Recorder of Kern County, California. The form of the Grant Deed will be as set forth in Exhibit "B" attached hereto. Escrow shall close on or before ninety (90) days following the Opening Date ("Closing Date"). By causing the Close of Escrow to occur, Escrow Holder shall be deemed to have irrevocably committed to cause the Title Company to issue the Title Policy. If the County Recorder of Kem County, Califomia is closed on the last day for closing escrow, then the parties agtee that Escrow Holder shall have until the next day the Recorder is open to record the Grant Deed and close escrow. 5.4 Dosuments and Funds from Buyer. Not later than one (1) business day prior to the Closing Date, Buyer will deliver or will assure that the following documents and funds have been delivered to Escrow Holder: (a) Purchase Price. The Purchase Price, as described in Section 2 above. (b) Preliminar.y change of ownership Statement. A Preliminary Change of Ownership Statement or in lieu thereof, the appropriate fee, to be provided to the Recorder's office at Close of Escrow. (c) Other Sums and Documents. All other sums and documents required by Escrow Holder according to this Agreement to carry out and close the Escrow. 5.5 Documents and Funds from Seller. Not later than one (1) business day prior to the Closing Date, Seller will deliver or will assure that the following documents and funds have been delivered to Escrow Holder: (a) Grant Deed. A fully executed and acknowledged Grant Deed conveying the Agency Property to Buyer, in fee simple. 2 I 7236.00000\9 I 887 I 9. I (b) FIRPTA Aff,rdavit. original affidavits, using Escrow Holder's standard forms, certifying that Seller and this transaction are not subject to the withholding requirements of the Foreign Investment in Real Property Tax Act and equivalent California legislation. (c) Other Sums and Documents. All other documents and sums required by Escrow Holder according to this Agreement to cary out the Escrow. 5.6 Electronic/Countemart Documents. In the event Buyer or Seller utilizes "facsimile" or other electronically transmitted signed documents, the parties hereby agree to accept and instruct Escrow Holder to rely upon such documents as if they bore original signatures. Buyer and Seller hereby agree, if requested by Escrow Holder, to provide to Escrow Holder within seventy-two (72) hours after transmission, such documents bearing the original signatures. Buyer and Seller further acknowledge and agree that electronically transmitted documents bearing non-original signatures will not be accepted for recording and that the parties will provide originally executed documents to Escrow Holder for such purpose. Escrow Holder is authorized to utilize documents which have been signed by Buyer and Seller in counterparts. 5.7 Costs of Escrow. At Closing, Seller will pay (from proceeds otherwise payable to Seller) the costs and expenses associated with the Title Policy and all escrow fees. Because of the status of Buyer and Seller as public agencies, no recording fee will be payable (pursuant to Government Code $ 27333) with respect to the Grant Deed and no documentary transfer tax will be payable (pursuant to Revenue & Taxation Code $ II922). 5.8 Agency Property Taxes and Assessments. Under Seller's ownership, the Agency Property has not been subject to real property taxes or assessments. Because of Buyer's status as a public entity, the Property will not become liable for payment of real property taxes and assessments after Closing. 6. Notices. Any and all notices required or permitted to be given hereunder shall be in writing and shall be personally delivered, sent by recognized overnight delivery service or mailed by certified or registered mail, retum receipt requested, postage prepaid, to the parties at the addresses indicated below: To Seller The Successor Agency To The Dissolved Shafter Community Development Agency 336 Pacific Avenue Shafter, CA 93263 Attn: City Manager Copy to: Best Best & Krieger LLP 2855 East Guasti Road, Suite 400 Ontario, CA 9176I Attn: Stephen P. Deitsch, Esq. J I 7236.00000\91 887 19. I To Buyer: City of Shafter 336 Pacific Avenue Shafter, CA 93263 Attn: City Manager To Escrow Ticor Title Company of California Holder: Attn: Brenda Amble 10000 Stockdale Highway, Suite 101 Bakersfield, CA 9331 1 Telephone: (661) 847 -7056 Facsimile: (661) 847 -7146 To Title Ticor Title Company of Califomia Company: Attn: Scott Murray 8050 N. Palm Avenue, Suite 110 Fresno, CA 93llI Telephone: (559) 261 -8950 Facsimile: (559) 261-8980 Any party may change its address by a notice given to the other party in the manner set forth above. Any notice given personally shall be deemed to have been given upon service, notices sent by overnight service shall be deemed received on the next business day and any notice given by certihed or registered mail shall be deemed to have been given on the third (3rd) business day after such notice is mailed. 7. Oversight Board/DOF Approval. Seller hereby confirms to Buyer that Seller's Long Range Property Management Plan (6(Plan") has been approved by the DOF and that the transaction described in this Agreement has been approved by the Oversight Board and the DOF. 8. Ground Lease. The Agency Property is subject to a Ground Lease with Cemex Construction Materials dated April 7, 2008 ("Ground Lease"). Pursuant to Section 16 of the Ground Lease the Seller shall, concurrently with the Close of Escrow, assign all rights and obligations under the Ground Lease to the Buyer. 9. Miscellaneous. 9.I Inteeration. This Agreement supersedes all prior agreements and understandings between the parties relating to the subject matter hereof. Neither of the parties has relied upon any oral or written representation or oral or written information given to it by any representative of the other party. 9.2 Assisnmen Effect Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other, which may be granted or withheld in the sole discretion of such party. This Agreement shall bind and inure to the benefit of the parties, their permitted successors and assigns. 4 I 7236,00000\9 I 887 I 9. I 9.3 Amendment/Modification. No change or modification of the terms or provisions of this Agreement shall be deemed valid unless in writing and signed by both parties. 9.4 Governing LailVenue. This Agreement shall be construed, interpreted and applied in accordance with the laws of the State of California. Any litigation or arbitration regarding the Agency Property or this Agreement will be brought in Kern County Superior Court or conducted in Kern County. 9.5 Business Reference herein to "business days" means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of California or in the City of Shafter. 9.6 Waiver. No waiver of any breach or default shall be construed as a continuing waiver of any provision or as a waiver of any other or subsequent breach of any provision contained in this Agreement. 9.7 Attorneys' Fees. In the event of any action or proceeding to enforce or construe any of the provisions of this Agreement, the prevailing party in any such action or proceeding shall be entitled to reasonable attomeys' fees and costs. 9.8 Counterparts. This Agreement may be executed in counterparts and when so executed by the parties, shall become binding upon them and each such counterpart will be an original document. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE FOLLOWS 5 1 7236.00000\9r 887 19. I IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. SELLER: THE SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER COMMUNITY DEVELOPMENT AGENCY, a public entity By: Scott Hurlbert Executive Director ATTEST: Christine Wilson Successor Agency Clerk BUYER: CITY OF SHAFTER, a California municipal corporation By: Scott Hurlbert City Manager 6 I 7236.00000\91 887 19. ì CONSENT AND ACKNOWLEDGMENT OF ESCRO\il HOLDER Ticor Title Company of California hereby agrees to (i) accept the foregoing Agreement, (ii) act as the Escrow Holder under said Agreement and (iii) be bound by said Agreement in the performance of its duties as Escrow Holder. Ticor Title Company of California acknowledges receipt on the date hereof of originals or counterparts of the foregoing Agreement fully executed by Seller and Buyer. Ticor Title Company of Califomia advises the parties that the date of the Opening of Escrow is Dated: 2014 TICOR TITLE COMPANY OF CALIFORNIA By: Its: 7 l 7236.00000\91 887 19. I EXHIBIT A Legal Description For Tax Map ID(sl: 091-180-18-00-0 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SHAFTER, COUNTY OF KERN, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: Parcel 4 of Parcel Map No. 11468, Phase 3, IN THE CITY OF SHAFTER, COUNTY OF KERN, STATE OF CALIFORNIA, as per Map recorded November 13, 2007 in Book 56, Page 28 of Parcel Maps, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL OIL, GAS, AND OTHER MINERALS, WITHIN OR TINDERLYING SAID LAND, OR THAT MAY BE PRODUCED AND SAVED THEREFROM, PROVIDING, HOV/EVER, GRANTOR, HIS SUCCESSORS AND ASSIGNS, SHALL NOT CONDUCT DRILLING OR OTHER OPERATIONS UPON THE SURFACE OF SAID LAND, BUT NOTHING HEREIN CONTAINED SHALL BE DEEMED TO PREVENT THE GRANTOR, HIS SUCCESSORS AND ASSIGNS, FROM EXTRACTING OR CAPTURING SAID MINERALS BY DRILLING ON ADJACENT OR NEIGHBORING LANDS AND/OR FROM CONDUCTING SUB-SURFACE DRILLING OPERATIONS UNDER SAID LANDS AT A DEPTH OF 5OO FEET BELOV/ THE SURFACE OF SAID LAND, SO AS NOT TO DISTURB THE SURFACE OF SAID LAND OR ANY IMPROVEMENTS THEREON, AS RESERVED BY, KERN COUNTY LAND COMPANY IN DEED RECORDED MAY 20, 1954 IN BOOK 2235, PAGE 104 OF OFFICIAL RECORDS. A-1 l 7236 00000\91 887 I 9. I EXHIBIT B GRANT DEED [See Attached] Exhibit B t7236 00000\9188719.1 RECORDING RE,QUESTED BY: and WHEN RECORDED MAIL TO: City of Shafter 336 Pacific Avenue Shafter, CA 93263 Attention: City Manager Assessor's Parcel No, 091-180-18 Exempt from Recording Fees per Govt. Code $27383 No Documentary Transfer Tax Pursuant to California Revenue & Taxation Code $ 11922 G DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER COMMUNITY DEVELOPMENT AGENCY, a public entity ("Grantor") does hereby GRANT to CITY OF SHAFTER, a California municipal corporation ("Grantee") the real property located in the City of Shafter, County of Kern, State of California, described in Exhibit "1" attached hereto. Subject to: 1. Non-delinquent real property taxes and assessments; 2. All covenants, conditions, restrictions, reservations, rights, rights of way, easements and other matters of record or apparent from an accurate survey of the Property. 3. The Grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or iegregation of, any person or group or persons on account of race, colot, creed, religion, sex, marital status, nation origin, or ancestry in the sale, lease, sublease, transfer, use' occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the Grantee or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sub-tenants, sub-lessee, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land. Date: THE SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER C OMMLTNITY DEVELOPMENT AGENCY, a public entity By: Scott Hurlbert Its Executive Director 1 I 7236.00000\9t 887 I 9. I ACKNOV/LEDGEMENT STATE OF CALIFORNIA ) COLINTY OF I On before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. V/ITNESS my hand and official seal. Signature (Seal) 2 I 7236.00000\9 I 887 19.1 EXHIBIT 1 Legal Description For Tax Mao ID(s) : 091-180-18-00-0 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SHAFTER, COLINTY OF KERN, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: Parcel 4 of Parcel Map No. 11468, Phase 3, IN THE CITY OF SHAFTER, COUNTY OF KERN, STATE OF CALIFORNIA, as per Map recorded November 13, 2007 in Book 56,Page 28 of Parcel Maps, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL OIL, GAS, AND OTHER MINERALS, WITHIN OR UNDERLYING SAID LAND, OR THAT MAY BE PRODUCED AND SAVED THEREFROM, PROVIDING, HOWEVER, GRANTOR, HIS SUCCESSORS AND ASSIGNS, SHALL NOT CONDUCT DRILLING OR OTHER OPERATIONS UPON THE SURT'ACE OF SAID LAND, BUT NOTHING HEREIN CONTAINED SHALL BE DEEMED TO PREVENT THE GRANTOR, HIS SUCCESSORS AND ASSIGNS, FROM EXTRACTING OR CAPTURING SAID MINERALS BY DRILLING ON ADJACENT OR NEIGHBORING LANDS AND/OR FROM CONDUCTING SUB-SURFACE DRILLING OPERATIONS LTNDER SAID LANDS AT A DEPTH OF 5OO FEET BELOV/ THE SURFACE OF SAID LAND, SO AS NOT TO DISTURB THE SURFACE OF SAID LAND OR ANY IMPROVEMENTS THEREON, AS RESERVED BY, KERN COUNTY LAND COMPANY IN DEED RECORDED MAY 20, 1954IN BOOK 2235, PAGE 104 OF OFFICIAL RECORDS. A-1 l 7236.00000\9 l 887 19. I CITY OF SHAFTER CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the Grant Deed to which this Certificate of Acceptance is attached, fTOM: THE SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER COMMUNITY DEVELOPMENT AGENCY, a public entity ('(Grantor") to: CITY OF SHAFTER, a California municipal corporation ("Grantee") is hereby accepted by the undersigned offlrcer on behalf of Grantee pursuant to authority conferred by the Grantee's governing board, and Grantee hereby consents to recordation of said Grant Deed. Dated CITY OF SHAFTER, a California municipal corporation By: Scott Hurlbert City Manager ATTEST: Christine Vy'ilson, City Clerk r 7236.00000\91 887 r 9.1 EXHIBIT C TO RESOLUTION NO.2363 ASSIGNMENT OF GROUND LEASE fAttached behind this cover page] EXHIBIT C ASSIGNMENT OF GROUND LEASE (Cemex Construction Materials) THIS ASSIGNMENT AGREEMENT (Saguaro) ("Assignment"), is made as of the 2nd day of September, 2014 ("Effective Date") by and between the SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER COMMUNITY DEVELOPMENT AGENCY, a public entity ("Assignor"), and the CITY OF SHAFTER, a California municipal corporation ("Assignee"). RECITALS A. The Shafter Community Development Agency ("CDA") previously owned that certain real property located in the City of Shafter, Kern County, California, as more particularly described in Exhibit "A" altached hereto (the "Property"). B. CDA and Cemex Construction Materials L.P., a Texas limited partnership ("Cemex") entered into that certain Ground Lease, dated April 7, 2008 ("Lease"), for the lease of the Property, which Cemex intended to use for the construction and operation of a Batch Plant Development, as more particularly described in the Lease. C. The CDA was dissolved by operation of State law on February 1,2012, as as a result, and the CDA's interest in the Property and the Lease was transferred to the Assignor. D. Assignee has entered into that certain Agreement of Purchase and Sale and Escrow Instructions dated September 2,2014 (the "Purchase Agreement") and pursuant to that Purchase Agreement is purchasing and acquiring the Property from Assignor. E. Assignor now wishes to assign and Assignee wishes to assume all of Assignor's rights, duties, obligations and liabilities under the Lease simultaneously with the closing ont he conveyance of the Property from Assignor to Assignee, and upon the terms and conditions stated herein. NOW, THEREFORE, for good and valuable consideration, the receipt and suffrciency of which are hereby acknowledged, the parties hereto hereby agree as follows: TERMS l. Incorporation of Recitals. The recitals of fact set forth above are true and correct and are incorporated into this Assignment, in their entirety, by this reference. 2. Assignment. Effective upon the date on which a grant deed conveying title to the Property from Assignor to Assignee is recorded in the Official Records of the County Recorder of Kem County, California (the "Close of Escrow"), Assignor assigns to Assignee all of Assignor's rights and obligations under the Lease. 3. Assumption. Effective upon the Close of Escrow, Assignee assumes from Assignor all of Assignor's rights and obligations under the Lease, and agrees to perform the 1 l 7236.00000\91 88680. 1 entirety of Assignor's covenants, agreements, obligations and duties under the Lease, as if Assignee were an original party to the Lease. 4. Assignor's Representations and Vy'arranties. Assignor hereby represents and warrants to Assignee and acknowledges that Assignee executed this Assignment in material reliance on the following representations and warranties: 4.1 A true, correct and complete copy of the fully executed Lease has been provided to Assignee. 4.2 Assignor has not made any prior conditional or unconditional assignment or conveyance of all or any part of its rights or obligations under the Lease. 4.3 The individuals executing this Assignment on behalf of the Assignor represent and warrant that they have the requisite right, power, legal capacity and authority to execute and deliver this Assignment on behalf of Assignor. 5. Assignee's Representations and Warranties. Assignee hereby represents and warrants to Assignor and acknowledges that Assignor executed this Assignment in material reliance on the following representations and warranties: 5.1 Assignee has received a true, correct and complete copy of the fully executed Lease from Assignor. 5.2 The individuals executing this Assignment on behalf of the Assignee represent and warrant that they have the requisite right, power, legal capacity and authority to execute and deliver this Assignment on behalf of Assignee. 5.3 Assignee is not aware of any conditions, existing or anticipated, that would prevent Assignee assuming ownership of the Property, as contemplated under the Lease. 6. Memorandum of Assignment. V/ithin ten (10) day following the Close of Escrow, Assignor and Assignee shall file a Memorandum of Assignment of Lease in the form attached hereto as Exhibit B with the County Recorder for recording in the official records of Kern County and pay all taxes, fees and other charges regarding such recording. 7. Notice of Assisnment. V/ithin ten (10) days following the Close of Escrow, Assignor shall notify Cemex of this Assignment in accordance with Section 16.1 of the Lease. 8. Counterparts. This Assignment may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which, together, shall constitute one and the same instrument. 9. Binding on Successors and Assigns. This Assignment shall be binding on and inure to the benefit of the Parties and their respective successors and assigns. 10. Severability. If any term or provision or portion of any term or provision of this Assignment or the application of any such term or provision or portion of such term or provision 2 r7236.00000\9188680 l to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Assignment, or the application of such term or provision or portion of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Assignment shall be valid and enforced to the fullest extent permitted by law. 1 1. No Intended Third Party Beneficiaries. The Parties do not intend to create any rights for, in favor of or on behalf of any person or entity by entering into this Assignment, other than the Parties themselves. 12. Entire Agreement. This Assignment contains the entire agreement of the Assignor and Assignee concerning the subject matter of this Assignment, and supersedes any prior written or oral agreements between the Assignor and Assignee concerning the subject matter of this Assignment. There are no representations, agreements, anangements, or understandings, oral or written, between the parties concerning the subject matter of this Assignment that are not fully expressed in this Assignment. 13. No Mcrgq. All covenants, representations and warranties of the parties contained in this Assignment shall survive delivery and recordation of instruments by which fee title to the Property is conveyed to Assignee under the Agreement. 14. Amendment. This Assignment may not be amended or altered, except by a written instrument executed by both of the parties. [Signatures on following page] J 17236.00000\9188680 I IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the day and year first written above. ASSIGNOR SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER COMMUNITY DEVELOPMENT AGENCY, a public entity By Scott Hurlbert Executive Director ATTEST By: Christine V/ilson Successor Agency Clerk ASSIGNEE CITY OF SHAFTER, a California municipal corporation By Scott Hurlbert City Manager ATTEST By: Christine Wilson City Clerk 4 I 7236.00000\91 88680. I EXHIBIT A TO ASSIGNMENT OF' GROUND LEASE (Cemex Construction Materials) LEGAL DESCRIPTION [Attached behind this cover page] Exhibit A 17236.00000\91 88680. I LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SHAFTER, COUNTY OF KERN, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOV/S: PARCEL 4 OF PARCEL MAP NO. 11468, PHASE 3, IN THE CITY OF SHAFTER, COI-]NTY OF KERN, STATE OF CALIFORNIA, AS PER MAP RECORDED NOVEMBER 13, 2OO7 IN BOOK 56, PAGE 28 OF PARCEL MAPS, IN THE OFFICE OF THE COLTNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL OIL, GAS, AND OTHER MINERALS, WITHIN OR UNDERLYING SAID LAND, OR THAT MAY BE PRODUCED AND SAVED THEREFROM, PROVIDING, HOV/EVER, GRANTOR, HIS SUCCESSORS AND ASSIGNS, SHALL NOT CONDUCT DRILLING OR OTHER OPERATIONS UPON THE SURFACE OF SAID LAND, BUT NOTHING HEREIN CONTAINED SHALL BE DEEMED TO PREVENT THE GRANTOR, HIS SUCCESSORS AND ASSIGNS, FROM EXTRACTING OR CAPTURING SAID MINERALS BY DRILLING ON ADJACENT OR NEIGHBORING LANDS AND/OR FROM CONDUCTING SUB-SURT'ACE DRILLING OPERATIONS UNDER SAID LANDS AT A DEPTH OF 5OO FEET BELOV/ THE SURFACE OF SAID LAND, SO AS NOT TO DISTURB THE SURFACE OF SAID LAND OR ANY IMPROVEMENTS THEREON, AS RESERVED BY, KERN COUNTY LAND COMPANY IN DEED RECORDED MAY 20,I954IN BOOK 2235, PAGE 104 OF OFFICIAL RECORDS. APN: 091-17 l-14-01 -1, 091-1 80-01-00-0 Exhibit A-1 I 7236.00000\91 88680. 1 EXIIIBIT B TO ASSIGNMENT OF GROUND LEASE (Cemex Construction Materials) MEMORANDUM OF ASSIGNMENT OF LEASE [Attached behind this cover page] I 7236.00000\91 88680. l Exhibit B RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Shafter Community Development Agency 336 Pacific Avenue. Shafter, California 93263 Attn: Executive Director Space above this line for Recorder's Use No Recording Fee Pursuant to Gov't Code $27383 MEMORANDUM OF ASSIGNMENT OF LEASE (Cemex Construction Materials) SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER COMMUNITY DEVELOPMENT AGENCY, a public entity ("Assignor") hereby assigns to CITY OF SHAFTER ("Assignee"), and Assignee hereby assumes from Assignor, all of Assignors rights and obligations under that certain unrecorded Ground Lease dated as of March 27, 2008 (the "Lease"), for which a Memorandum of Lease was recorded that certain real property located in the City of Shafter, County of Kern, State of California, more particularly described in Exhibit "1" attached hereto (the "Premises"), in the Offrcial Records of the County of Kern, as Document No. 02080 69595. ASSIGNOR: Dated: SUCCESSOR AGENCY TO THE DISSOLVED SHAFTER COMMUNITY DEVELOPMENT AGENCY, a public entity By Name: Executive Director ASSIGNEE: Dated: CITY OF SHAFTER, a California municipal corporation By: Name: City Manager I 7236.00000\91 88680. I Exhibit B-l ACKNOWLEDGEMENTS STATE OF CALIFORNIA ) COUNTY OF On before me, (here insert name and title of the officer), personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ) COUNTY OF On before me, (here insert name and title of the offrcer), personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certiff under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. V/ITNESS my hand and offrcial seal. Signature (Seal) I 7236.00000\91 88680. I Exhibit B-2 EXHIBIT "1" TO MEMORANDUM OF ASSIGNMENT OF LEASE (Cemex Construction Materials) LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOV/ IS SITUATED IN THE CITY OF SHAFTER, COUNTY OF KERN, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 4 OF PARCEL MAP NO. 11468, PHASE 3, IN THE CITY OF SHAFTER, COUNTY OF KERN, STATE OF CALIFORNIA, AS PER MAP RECORDED NOVEMBER 13, 2OO7 IN BOOK 56, PAGE 28 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL OIL, GAS, AND OTHER MINERALS, WITHIN OR UNDERLYING SAID LAND, OR THAT MAY BE PRODUCED AND SAVED THEREFROM, PROVIDING, HOV/EVER, GRANTOR, HIS SUCCESSORS AND ASSIGNS, SHALL NOT CONDUCT DRILLING OR OTHER OPERATIONS UPON THE SURFACE OF SAID LAND, BUT NOTHING HEREIN CONTAINED SHALL BE DEEMED TO PREVENT THE GRANTOR, HIS SUCCESSORS AND ASSIGNS, FROM EXTRACTING OR CAPTURING SAID MINERALS BY DzuLLING ON ADJACENT OR NEIGHBORING LANDS AND/OR FROM CONDUCTING SUB-SURFACE DRILLING OPERATIONS UNDER SAID LANDS AT A DEPTH OF 5OO FEET BELOV/ THE SURFACE OF SAID LAND, SO AS NOT TO DISTURB THE SURFACE OF SAID LAND OR ANY IMPROVEMENTS THEREON, AS RESERVED BY, KERN COUNTY LAND COMPANY IN DEED RECORDED MAY 20,I954IN BOOK 2235, PAGE 104 OF OFFICIAL RECORDS. APN: 091-17 l-14-01-1, 091-1 80-01-00-0 I 7236.00000\91 88680. I Exhibit B-3 CERTIFICATE OF GOVERNING BODY'S ACTION STATE OF CALIFORNIA ) ) SS COUNTY OF KERN ) 'Wilson, I, Christine City Clerk of the City of Shafter, California, DO HEREBY CERTIFY that the above Resolution 2363, a Resolution of the City Council of the City of Shafter, was duly passed and adopte d at a Regular Meeting held on the 2nd day of September,20!4, by the following vote: AYES: Colvard, Florez, Johnston, and Prout. NOES: None. ABSENT: Alvarado. ABSTAINING: None. DATED: September 2,2014 (sEAL) City Clerk of the City of Shafter