HomeMy WebLinkAbout2009-01-27 - AGENDA REPORTS - LEASEHOLD INTEREST CARQUEST (3)Agenda Item: CC /scpPA
CITY OF SANTA CLARITA
JOINT CITY COUNCIL / REDEVELOPMENT AGENCY
AGENDA REPORT
PUBLIC HEARING
DATE:
City Manager Approval
Item to be presented by:
January 27, 2009
Alex Hernandez
SUBJECT: RESOLUTION OF NECESSITY TO ACQUIRE THE LEASEHOLD
INTEREST AND CERTAIN IMPROVEMENTS PERTAINING TO
THE REALTY OF GENERAL PARTS, INC., DBA CARQUEST
AUTO PARTS, 24535 MAIN STREET, SANTA CLARITA, CA
FOR PROJECT NO. F2007390 - NEWHALL LIBRARY
DEPARTMENT: Community Development
RECOMMENDED ACTION
City Council: No action required.
Redevelopment Agency:
1. Conduct a public hearing and adopt a Resolution of Necessity authorizing the acquisition of
the leasehold interest and certain improvements pertaining to the realty of General Parts, Inc. dba
Carquest Auto Parts, 24535 Main Street, Santa Clarita, CA by condemnation for the development
of the proposed public library improvements in Downtown Newhall.
2. Approporiate $59,370 from available funds in the Redevelopment Agency fund balance to
Account 13400-5201.004.
3. Authorize the Executive Director or designee to deposit $59,370 from Account
13400-5201.004 to the Los Angeles County Superior Court to initiate immediate taking
proceedings; and to execute all required documentation to complete the acquisition of the
leasehold interest and certain improvements pertaining to the realty of General Parts, Inc. dba
Carquest Auto Parts, 24535 Main Street, Santa Clarita, CA, subject to Agency Attorney approval.
Aaopted: 'Pe -so, 2 D A Qq --Z
BACKGROUND
Downtown Newhall Specific Plan:
The Redevelopment Agency of the City of Santa Clarita has been designated as the Agency in the
City of Santa Clarita to carry out the functions and requirements of the Community
Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.)
and to implement its Redevelopment Plan for the elimination and mitigation of blighted areas.
The subject leasehold interest and improvements pertaining to the realty for General Parts, Inc.
dba Carquest Auto Parts, 24535 Main Street, Santa Clarita, CA is located within the Newhall
Redevelopment Project Area.
As an active and engaged partner in the revitalization of Newhall, the Agency assisted in the
implementation of the Downtown Newhall Specific Plan ("DNSP"), which was adopted on
December 22, 2005. The primary purpose of the DNSP is to revitalize and transform the present
commercial character of Downtown Newhall into an attractive, mixed use, pedestrian oriented,
economically vital center as envisioned in the Specific Plan. The revitalization plan developed in
the DSNP consists of 50 main blocks for residential, commercial and office development and
civic buildings and envisions, among other elements, a set of civic and community facilities that
enable the public life of all people there, as well as, educational facilities that promote life-long
learning.
Project Site
As noted in the DNSP, one of the several initiatives to enhance Downtown Newhall is the
construction of a new, visually prominent public library at the northerly terminus of Main Street.
This is one of two important buildings that will visually anchor and define the ends of Main
Street. This new library will draw from beyond Newhall and strengthen the greater community's
presence and awareness of the Downtown Newhall area, as well as, attract a wide range of age
groups to the Downtown Newhall area.
In November 2007, the Agency purchased the property located at 24535 Main Street. The terms
of the purchase and sale agreement required that the Agency assume two existing lease
agreements, one of those leases is with General Parts, Inc., dba Carquest Atuo Parts. The
Carquest lease does not end until July 31, 2012, however, construction of the new library is
scheduled to begin on or about July 1, 2009.
Negotiations
Since May 2008, Agency staff and the Agency's relocation consultant, RSG have been working
with Carquest's relocation representatives in an effort to identify another business location for the
parts store. Since that time, over twenty potential locations have been submitted to Carquest for
evaluation. Still, Carquest representatives have indicated that those properties, as well as many
others within Santa Clarita, will not be acceptable for their specific business needs. In an effort
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to adhere to the current schedule which provides for construction of the library project to start in
July 2009, an appraisal was completed to establish the fair market value of the leasehold interest
and the improvements pertaining to the realty (aka furniture, fixtures and equipment) for General
Parts, Inc. dba Carquest Auto Parts. A copy of the appraisal is attached as Exhibit A-2.
On December 24, 2008, an offer to purchase the leasehold interest and improvements to realty in
the amount of $59,370 was submitted to General Parts, Inc., dba Carquest Auto Parts, which was
determined to be the total amount of just compensation for the acquisition of the leasehold
interest and the improvements pertaining to the realty. This is separate and apart from any other
relocation benefits or assistance that General Parts, Inc., dba Carquest Auto Parts may be entitled.
Those costs will be determined once the acquisition of the leasehold interest and improvements
pertaining the realty has been completed.
Property Condemnation
Pursuant to Section 19, Article I of the California Constitution, Sections 33391 (b) and 33000 et
seq. of California Health & Safety Code, Section 1230.010 et seq., of the California Code of
Civil Procedure, the California Redevelopment Law and other authorities, the Agency is
authorized to acquire the leasehold interest and improvements pertaining to the realty located at
24535 Main Street, by eminent domain provided certain procedural steps are followed.
First, the Agency must make an offer to the owner of the interests and improvements to be
acquired, which offer must be transmitted in writing, based upon an appraisal. As required, by
Section 7267.2 of the California Government Code, an offer to purchase the leasehold interest
and improvements pertaining to the realty was made to General Parts, Inc. dba Carquest Auto
Parts on December 24, 2008 (a copy of the offer letter is attached as Exhibit A-1.)
Due to the fact that the Agency's offer still has not been accepted, it is now necessary that an
action in eminent domain be commenced to acquire the leasehold interest and improvements
pertaining to the realty. Prior to filing the action, the Agency must hold a hearing on a proposed
Resolution of Necessity (attached) and provide the owner an opportunity to be heard at that
hearing, provided the owner has filed a request to be heard in writing with the Agency prior to
the hearing.
A Notice of Hearing has been mailed by first class mail to the property owner and states the
Agency's intent to consider the adoption of the resolution, the right of each person to appear and
be heard on these issues, and the failure to file a written request to appear will result in a waiver
of the right to appear or be heard. The required notice to the property owner was provided on
January 12, 2009 (a copy of the Notice of Hearing is attached as Exhibit B). The Notice of
Hearing was mailed in accordance with the requirements of State law pertaining to eminent
domain proceedings.
After conducting the public hearing, the Agency must determine whether the public necessity
requires that a Resolution of Necessity be adopted authorizing condemnation proceedings for the
purpose described therein.
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The findings, which need to be made, are as set forth in the proposed Resolution of Necessity.
As to these findings, staff has the following comments:
1. That the public interest, convenience and necessity require the proposed project. As
set forth above, the Project will serve public purposes of the Redevelopment Plan, including the
elimination and mitigation of blight within the Redevelopment Area, through implementation of
the revitalization plan developed in the DNSP. A primary purpose of the DNSP is to transform
the present commercial character of Downtown Newhall into an attractive, mixed use, pedestrian
oriented, economically vital center. A key component of the DNSP is the construction of a new,
visually prominent public library at the northerly terminus of Main Street, which will announce
to Newhall and the greater community of Santa Clarita the civic importance of the revitalized
Downtown, providing more reasons for people to visit Downtown Newhall. This replanning,
redesigning and redevelopment of Downtown Newhall meets the goals and objectives of the
Agency's Redevelopment Plan to revitalize the Project Area.
2. That the project is planned or located in the manner that will be most compatible
with the greatest public good and the least private injury. The DNSP envisions two
important public buildings, the public library and a museum, that will visually anchor and define
the ends of Main Street to define and energize it. The location of the new public library will be
strategically located at the northern terminus of Main Street. It is the opinion of staff that a
public library on that site would achieve the greatest public good while resulting in the least
private injury by implementing the goals and objectives of the DNSP, the Redevelopment Plan
and the California Redevelopment Law. The acquisition of the leasehold interests and certain
improvements to the realty will contribute to the highest and best use for the Property.
Moreover, the Agency has been successful in acquiring by negotiation most of the property
needed to construct the new library. The property occupied by General Parts, Inc., dba Carquest
Auto Parts is one of the parcels needed for construction of the new library. At this point, any
other proposed location for the Library will result in greater private injury because more property
would need to be acquired.
3. That the Property is necessary for the project. The leasehold interests and
improvements to the realty are situated within that portion of the DNSP designated as necessary
for the construction of the new public library.
4. That the Agency has satisfied the provisions and complied with all requirements of
the California Environmental Quality Act ("CEQA") for the project.
On November 8, 2005, the City Council certified a Final Environmental Impact Report for the
Downtown Newhall Specific Plan. The proposed public library project, for which the site
acquisition is necessary is discussed in those environmental documents. Therefore, the City has
satisfied its obligation under the California Environmental Quality Act ("CEQA") to conduct an
environmental analysis of the proposed acquisition. Thus, further environmental review is not
necessary. In addition this acquisition has been found in compliance with Government Code
section 65402 regarding general plan consistency.
Questions relating to value are not relevant to this proceeding, and this proceeding does not mean
that negotiations for the acquisition of the leasehold interests and certain improvements related to
the realty are at an end. As is the case for every proposed condemnation, staff will continue to
negotiate with the property owner to reach a complete settlement. At this time, however, staff
believes that it is important to move the official acquisition process forward to facilitate the
implementation of the goals of the Downtown Newhall Specific Plan by adding needed public
facilities such as a public library to the Project Area and removing blighted conditions.
ALTERNATIVE ACTIONS
Other action as determined by the Agency.
FISCAL IMPACT
Approporiate $59,370 from available funds in the Redevelopment Agency fund balance to
Account 13400-5201.004.
ATTACHMENTS
Resolution
Offer Letter - Exhibit A-1
Appraisal - Exhibit A-2
Notice of Hearing - Exhibit B
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RESOLUTION NO. RDA
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
SANTA CLARITA, CALIFORNIA, FINDING AND DETERMINING BY VOTE OF
TWO-THIRDS OR MORE OF ITS MEMBERS THAT THE PUBLIC INTEREST,
CONVENIENCE, AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN
PROPERTY INTERESTS FOR PUBLIC PURPOSES FOR THE CONSTRUCTION OF THE
NEWHALL LIBRARY
THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Redevelopment Agency of the City of Santa Clarita (hereafter
"Agency"), after consideration of the Agenda Report, staff presentation, discussion, oral
testimony and evidence presented at the public meeting on January 27, 2009 hereby finds,
determines and declares as follows:
a. The public interest, convenience, and necessity require the acquisition by Agency
of certain property interests, which includes the leasehold interest and improvements to
realty ("Interests") located within the City of Santa Clarita, the County of Los Angeles,
State of California for public use relative to the construction of a new public library in the
Newhall Redevelopment Project Area ("Project'); and
b. The Interests to be acquired are located at 24535 Main Street, Santa Clanta, CA
and are further described on Exhibit "A-2" attached hereto and incorporated herein by
this reference; and
C. The proposed Project is planned or located in the manner that will be most
compatible with the greatest public good and the least private injury; and
d. The taking of the interest is necessary for the stated Project, and such taking is
authorized by Section 19, Article I of the California Constitution, Sections 33391 (b) and
33000 et seq. of California Health & Safety Code, Section 1230.010 et seq., of the
California Code of Civil Procedure, the California Redevelopment Law and other
applicable law; and
e. The offer to purchase required by California Government Code Section 7267.2
has been made to the owner of the property; and
f. The Agency has complied with all conditions and statutory requirements
necessary to exercise the power of eminent domain (the "right to take") to acquire the
Interest, as well as any other matter regarding the right to take said Interest by eminent
domain; and
g. The necessary notification of the Notice of Hearing, as required by the California
Code of Civil Procedure, Sec. 1245.235 was given.
SECTION 2. The Agency Board of the Agency hereby declares that it is its intention to
acquire said Interest in its name in accordance with the provision of the laws of the State of
California with reference to condemnation procedures.
SECTION 3. That if any of the area of the Interest has been appropriated to some public
use, the public uses to which they are to be applied by the Agency, as described above, are more
necessary and paramount public uses, pursuant to Code of Civil Procedure Section 1240.610, or
at the very least are compatible with the existing public use pursuant to Code of Civil Procedure,
Section 1240.510.
SECTION 4. That the Interest, the acquisition of which is required by said public
interests, convenience, and necessity for the purposes set forth in Section 1 hereof, is located
within the City of Santa Clarita, County of Los Angeles, State of California.
SECTION 5. That the Agency has satisfied the provisions and complied with all
requirements of the California Environmental Quality Act ("CEQA") for the Project.
SECTION 6. Agency Counsel and the firm of Burke, Williams & Sorensen, as special
counsel, under the direction of Agency Counsel, are authorized and directed to prepare, institute,
and prosecute in the name of the Agency such proceedings in the proper court having jurisdiction
thereof as may be necessary for the acquisition of said interest, including filing of an application
for an order of immediate possession prior to judgment.
SECTION 7. This Resolution shall be effective immediately upon its adoption.
SECTION 8. The Agency Secretary shall certify the adoption of this Resolution and
certify this record to be a full, complete and correct copy of the action taken.
PASSED, APPROVED, AND ADOPTED this day of , 2009.
— — — — — — — — — — — — — — — — — — — — — — — — — —
Agency Chair
ATTEST:
Agency Secretary
2
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, MMC, Agency Secretary of the Redevelopment Agency of the City of
Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the
Redevelopment Agency of the City of Santa Clarita at a regular meeting thereof, held on
the day of , 2009, by the following vote of the Agency Board:
AYES: AGENCY MEMBERS:
NOES: AGENCY MEMBERS:
ABSENT: AGENCY MEMBERS:
— — — — — — — — — — — — — — — — — — — — — — — — — — — —
AGENCY SECRETARY
3
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA)
CERTIFICATION OF
REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA
RESOLUTION
I, Sharon L. Dawson, Agency Secretary of the Redevelopment Agency of the City of Santa
Clarita, do hereby certify that this is a true and correct copy of the original Resolution No.
09-, adopted by the Redevelopment Agency of the City of Santa Clarita of the City of Santa
Clarita, California on 2009, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this day of
)2009.
Sharon L. Dawson, MMC
Agency Secretary
By
Susan Coffman
Deputy City Clerk
December 23, 2008
General Parts, Inc.
dba Carquest Auto Parts
2635 E. Millbrook Road
Raleigh, NC 27604
Attn: Thomas B. Hines, Vice President
Subject Offer to Purchase the Improvements Pertaining to the Realty Located at
24535 Main Street (formerly 24535 San Fernando Road),
in Santa Clanta, California
Dear Mr. Hines:
The Santa Clarita Redevelopment Agency (SCRDA) is planning for the construction
of a new library in Downtown Newhall. This important project is a top priority of the
City Council and the SCRDA. The SCRDA has already acquired the underlying fee
of the property located at 24535 San Fernando Road, Newhall, California
("Property"). The SCRDA now desires for construction of the project to begin in the
near future, which will necessitate vacation of the Property at some point in the
future.
Our records show that you currently lease the Property. The SCRDA has obtained an
independent appraisal which has determined the fair market value of the
improvements pertaining to the Property ("Improvements Pertaining to the Realty")
amounts to $59,370. The appraisal has been completed and reviewed, and the
SCRDA has determined that amount to constitute the full amount of dust
compensation for the interests to be acquired.
The SCRDA is offering, subject to Agency Board approval, the full $59,370 amount
reflected in the appraisal as the fair -market value for the Improvements Pertaining to
the Realty. The basis for that determination as dust compensation for the
Improvements Pertaining to the Realty is explained in the enclosed copy of the
Appraisal Summary Report. While staff proposes to recommend the acquisition of your
interests in the Property for the Project, no decision to acquire can be made until the
Agency Board formally acts to approve this acquisition Nothing in this letter is meant to
pre -commit the Agency Board or otherwise limit the options available to it Please note
that this offer is subject to the ratification of an agreement for purchase and sale by
the Agency Board for the SCRDA, the adoption of a resolution of necessity, or both.
Please be advised that you are entitled to a reasonable amount, not to exceed five
thousand dollars ($5,000.00), for an appraisal prepared by an independent appraiser
licensed by the Office of Real Estate Appraisers.
LA #4838-4057-4211 v1
Page 2
If this offer is acceptable to you, please so indicate to the undersigned in writing by
3:00 p.m. on January 23, 2009. Upon your acceptance, the SCRDA will prepare and
forward to you an agreement to complete the transaction. Upon receipt of a signed
agreement, the matter will be reviewed by the Agency Board, which has final
ratification authority.
In addition, you should be aware that in the event negotiations fail to result in an
agreement, the SCRDA will proceed with the acquisition of your interests in the
Property through eminent domain.
If for any reason you do not accept the SCRDA's offer, please be advised that the
matters included within this letter, as well as the enclosed summary statement, fall
within the provisions of, inter alia, Section 1152 and 1154 of the California Evidence
Code, Section 1255.060 of the Code of Civil Procedure, and Sections 7267 1 and
7267.2 of the Government Code, and are not admissible in evidence in any eminent
domain proceeding, which may be subsequently instituted for the acquisition of the
present property interests, or in any other action.
If you have any questions regarding this offer or have information regarding the value
of your property, please contact me at (661) 286-4046.
Sincerely,
Barbara Stoll
Acquisitions Specialist
Enclosure — FF&E Appraisal
AS.BS:rs
s/pr/open space & real property/stoll/redevelopmenUdowntown newhall acquisitions/carquesuFFE offer letter
cc: Paul Brotzman, Director Community Development
Chris Price, Assistant City Engineer
Harry Corder, Senior Engineer
Armine Chaparyan, Redevelopment Manager
LA #4838-4057-4211 vl
ACCEPTANCE
The foregoing offer of the Santa Clarita Redevelopment Agency for the acquisition of
the property described in enclosed appraisal report is hereby accepted:
GENERAL PARTS, INC. / CARQUEST AUTO PARTS
Dated.
Signature
Name — Please type or print
REGARDING SUBJECT PROPERTY
CARQUEST AUTO PARTS - FF&E Offer
Leased Premises Location
24535 Main Street (formerly San Fernando Road)
Santa Clarita, California 91321
LA #4838-4057-4211 vi
i
SUMMARY APPRAISAL REPORT OF
IMPROVEMENTS PERTAINING TO THE REALTY
a AND MOVABLE EQUIPMENT
OF
CARQUEST AUTO PARTS
24535 SAN FERNANDO ROAD
NEWHALL, CALIFORNIA
PREPARED FOR THE
SANTA CLARITA REDEVELOPMENT AGENCY
Effective Date of Value
July 23, 2008
Prepared By
DESMOND, MARCELLO & AMSTER
6060 Center Drive, Suite 825 225 Bush Street, 161' Floor
Los Angeles, California 90045 San Francisco, California 94104
Tel. (310) 216-1400 Tel. (415) 439-8390
Fax (310) 216-0800 Fax (415) 449-3643
Toll Free No. (888) 240-5184
www.dmavalue.com
DMO
DMM
August 15, 2008
Mr. Matt S. McCleary
Rosenow Spevacek Group, Inc.
309 West 4`s Street
Santa Ana, CA 92701
Desmond, Marcello & Amster
Valuation and Litigation Consultants
6060 Center Drive, Suite 825
Los Angeles, CA 90045
Tel • (310) 216-1400
Fax. (310) 216-0800
Toll Free: (888) 240-5184
225 Bush St., 10h Floor
San Francisco, California 94104
Tel •(415)439-8390
Fax. (415) 439-8391
www dmavalue corn
Re: Summary Appraisal Report of Improvements Pertaining to the Realty and
Movable Equipment of Carquest Auto Parts
Located at 24535 San Fernando Road, Newhall, California
Prepared for the Santa Clarita Redevelopment Agency
File No.. 2442/02A(3)
Dear Mr. McCleary:
As you requested, Desmond, Marcello & Amster ("DM&A") has made an investigation and analysis of
improvements pertaining to the realty and movable equipment of a business known as Carquest Auto
Parts, located at 24535 San Fernando Road, Newhall, California.
The effective date of value utilized herein is July 23, 2008.
The purpose of this appraisal is to provide an estimate of the fair market value in place and forced
liquidation value of the items appraised.
The intended use or function of this appraisal is to assist the Santa Clarita Redevelopment Agency in
determining compensation to the business owner as a result of the acquisition and/or relocation of the
subject business' assets.
Definitions of and compensation for improvements pertaining to the realty are included under Article 3
of the California Code of Civil Procedure, §1263.205 and §1263.210, respectively. Compensation for
losses in connection with tangible personal property is included under §6090 and §6092 of the California
Administrative Code, Title 25, Chapter 6. A further discussion of these sections is included in the body
of the report.
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Mr. Matt S. McCleary
August 15, 2008
Page Two
Based upon our investigation and analysis, and in reliance upon the information provided, a summary of
the appraised values of the property considered as of July 23, 2008 is as follows.
Improvements Pertaining to the Realty
Movable Equipment
Fair Market
Forced
Value
Liquidation
In Place
Value
$59,370
$200
$67,960
$20,585
The opinions of value are presented in the Summary and Conclusions section and are contingent upon the
analysis, facts and Appraiser Certification and Limiting Conditions set forth in the accompanying report.
Respectfully submitted,
DESMOND, MARCELLO & AMSTER
ML/bc
F \uses\F & Manta ClaritaB442-02A CarQuest doc
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TABLE OF CONTENTS
LETTER OF TRANSMITTAL
APPRAISER CERTIFICATION
Paee-
APPRAISAL REPORT I
PROPERTY APPRAISED I
PURPOSE AND INTENDED USE I
VALUE DATE/REPORT DATE I
DEFINITION OF IMPROVEMENTS PERTAINING TO THE REALTY I
COMPENSATION FOR IMPROVEMENTS PERTAINING TO THE REALTY 2
COMPENSATION FOR MOVABLE EQUIPMENT 2
APPRAISAL DEFINITIONS 2
DESCRIPTION OF THE BUSINESS 4
DESCRIPTION OF THE ASSETS APPRAISED 4
APPRAISAL PROCESS 4
SUMMARY AND CONCLUSIONS 7
ADDENDA
IMPROVEMENTS PERTAINING TO THE REALTY
MOVABLE EQUIPMENT
SUBJECT PHOTOGRAPHS
CONTINGENT AND LIMITING CONDITIONS
CURRICULUM VITAE
- DMM
APPRAISER CERTIFICATION
I certify that, to the best of my knowledge and belief:
• the statements of fact contained in this report are true and correct.
• the reported analyses, opinions and conclusions are limited only by the reported assumptions and
lirrutmg conditions, and are my personal, impartial and unbiased professional analyses, opinions
and conclusions.
• I have no present or prospective interest in the property that is the subject of this report, and no
personal interest with respect to the parties involved.
• my engagement in this assignment was not contingent upon developing or reporting
predetermined results.
• I have no bias with respect to any property that is the subject of this report or to the parties
involved with this assignment.
• my compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of the appraisal
• my analyses, opinions and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice of The Appraisal
Foundation and the Principles of Appraisal Practice and Code of Ethics of the American Society
of Appraisers.
• I have made a personal inspection of the property that is the subject of this report.
• no one has provided significant personal property appraisal assistance to the person signing this
certificate.
Michael A. Lacey, ASA
Manager
APPRAISAL REPORT
PROPERTY APPRAISED
For the purposes of this report, we have prepared an inventory and valuation of certain
improvements pertaining to the realty and major movable equipment. Leasehold improvements,
licensed vehicles, personal property and inventory are excluded from this report.
The items appraised have been valued assuming a 100% ownership interest without
consideration for any encumbrances against the property appraised.
PURPOSE AND INTENDED USE
The purpose of this appraisal is to set forth our opinion of the fair market value in place and
forced liquidation value of improvements pertaining to the realty and movable equipment
together with our rationale and reasoning in estimating the value of the subject assets appraised
It is the intended use or function of this appraisal to provide the Santa Clanta Redevelopment
Agency and its representatives with information and support to negotiate the acquisition of
improvements pertaining to the realty and to ascertain prospective relocation compensation for
movable equipment, if any.
VALUE DATE/REPORT DATE
The effective date of value utilized in this report, July 23, 2008, corresponds to the completion of
our field investigation. The report date on the accompanying letter corresponds to the final date
of report preparation.
DEFINITION OF IMPROVEMENTS PERTAINING TO THE REALTY
Article 3 of the California Code of Civil Procedure, §1263.205 reads as follows.
(a) As used in this article, "improvements pertaining to the realty" include any machinery or
equipment installed for use on property taken by eminent domain, or on the remainder if
such property is part of a larger parcel, that cannot be removed without a substantial
economic loss or without substantial damage to the property on which it is installed,
regardless of the method of installation
(b) In determining whether a particular property can be removed "without a substantial
economic loss" within the meaning of this section, the value of the property in place
considered as part of the realty should be compared with its value if it were removed and
sold. '
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COMPENSATION FOR IMPROVEMENTS PERTAINING TO THE REALTY
Article 3 of the California Code of Civil Procedure § 1263.210 provides for compensation for
improvements pertaining to the realty as follows -
(a) Except as otherwise provided by statute, all improvements pertaining to the realty shall
be taken into account in determining compensation.
(b) Subdivision (a) applies notwithstanding the right or obligation of a tenant, as against the
owner of any other interest in real property, to remove such improvements at the
expiration of his term.
COMPENSATION FOR MOVABLE EQUIPMENT
Article 3 of the California Code of Regulations, Title 25, Chapter 6, provides for Relocation
Payments to Displaced Persons. The following sections are pertinent.
§6090(b)(5) Actual Reasonable Moving Expenses — Displaced Business Concerns and
Farm Operations: Where an item of personal property which is used in connection with
any business or farm operation is not moved but is replaced with a comparable item,
reimbursement in an amount not to exceed (1) the replacement cost, minus any net
proceeds received from its sale, or (2) the estimated cost of moving, whichever is less.
§6092(6) Determining Actual Direct Loss of Property. Actual direct loss of property
shall be determined on the basis of the lesser of the following:
(1) The fair market value of the property for continued use at its location prior to
displacement.
(2) The estimated reasonable cost of relocating the property .. .
APPRAISAL DEFINITIONS
Replacement Cost New
The current cost of a similar new property having the nearest equivalent utility as the property
being appraised, as of a specific date. [Source- American Society of Appraisers, Principles of
Valuation]
Depreciation
A loss in value from all causes, including factors of deterioration and functional and/or econonuc
obsolescence, as of a specific date. [Source: American Society of Appraisers, Principles of
Valuation]
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Fair Market Value in Place
In estimating the market value of improvements pertaining to the realty and movable equipment,
we have relied upon the definition of fair market value found in Article 4, §1263.320 of the
California Code of Civil Procedure, which reads as follows:
(a) The fair market value of the property taken is the highest price on the date of valuation
that would be agreed to by a seller, being willing to sell but under no particular or urgent
necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to
buy but under no particular necessity for so doing, each dealing with the other with full
knowledge of all the uses and purposes for which the property is reasonably adaptable
and available.
(b) The fair market value of property taken for which there is no relevant, comparable
market is its value on the date of valuation as determined by any method of valuation that
is dust and equitable.
In estimating the fair market value in place, additional costs may be incurred to place the asset in
service including installation, freight, sales tax, design and other acquisition costs.
Forced Liquidation Value
The estimated gross amount, expressed in terms of money, that could typically be realized from a
properly advertised and conducted public auction, with the seller being compelled to sell with a
sense of immediacy on an as -is, where -is basis, as of a specific date. [Source: American Society
of Appraisers, Valuing Machinery and Equipment]
Effective Ame
The apparent age of an asset in comparison with a new asset of like kind. It is often calculated
by deducting the Remaining Useful Life of an asset from the Normal Useful Life. [Source:
American Society of Appraisers, Principles of Valuation]
Leasehold Improvements
Leasehold improvements are defined as building improvements to leased property which have
been made by the lessee other than items° classified as improvements pertaining to the realty.
Estimated Remaining Life
The period over which an item, or groups of items are estimated to remain in use. [Source:
American Society of Appraisers, Principles of Valuation]
As Is Value
As is consideration is given in lieu of Replacement Cost New on those items where a reasonable,
accurate or comparable new cost is indeterminate or misleading.
DESCRIPTION OF THE BUSINESS
Carquest Auto Parts is a retail vehicle parts store and machine shop located at
24535 San Fernando Road in Newhall, California The store's parent company is General Parts,
Incorporated, headquartered in Raleigh, North Carolina. The store has been operating under the
Carquest name at the subject location since circa 1986. The hours of operation are 8:00 a.m. to
6.00 p.m., Monday through Friday, 8:00 a.m. to 5:00 p.m. on Saturday, and 9:00 a.m. to 3:00
p.m. on Sunday The business occupies approximately 5,400 square feet of building area.
DESCRIPTION OF THE ASSETS APPRAISED
Mayor improvements pertaining to the realty consist of signage, window covering, security gates
and window bars, fan belt hanger strips, supplemental electrical power distribution for
equipment, an in -ground safe, an alarm system, ceiling recessed audio speakers, service counters,
specialty plumbing, installation only of internet equipment, ceiling fans, a through -wall air
conditioner, pneumatic piping, and minor miscellaneous improvements and installations. In our
opinion, the composite remaining life for all the improvements pertaining to the realty is 13
years.
Major items of movable equipment consist of office and shop furniture, shelving units, business
and shop equipment, and vehicle repair equipment and machinery. In our opinion, the composite
remaining life for all the movable equipment is eight years.
Highest and Best Use
It is our opinion that the improvements pertaining to the realty and the equipment are currently
being used in a capacity for which they were designed and the highest and best use is the
continuation of their present use.
Industa
Most of the improvements pertaining to the realty and equipment are the current state of the art
and can usually be constructed or acquired by qualified contractors or in the secondary
marketplace through used equipment dealers.
APPRAISAL PROCESS
Introduction
The appraisal process consists of three phases. These are: 1) identification, inspection and
recording of data; 2) research; and 3) valuation analysis resulting in a conclusion of fair market
value in place and forced liquidation value.
Identification, Inspection and Recording of Data
The assets valued were first identified by Tim Pfeifer, a representative of the business, and
subsequently inspected and recorded by the appraiser. The recording included a full description
of each asset including, when available, the manufacturer, model, serial number, size and
condition of the asset and any other information that would assist us in the subsequent valuation.
The level of maintenance was observed as well as the method of installation.
4
DMM
z ZI
A complete listing of the business assets appraised, together with the quantity, fair market value
in place and forced liquidation value, is included in the Addenda of this report.
Research
DM&A has relied upon many sources of information including, but not limited to, the following:
• An inspection of the subject site;
• A subsequent identification and inventory of the improvements and equipment;
• A conversation with the related real estate appraiser, Mr. Gary Valentine, MAI of
Valentine Appraisal & Associates;
• A personal interview with Mr. Tim Pfeifer, a representative of the business, and Mr. Paul
Roques, the manager of the store,
• Conversations with and information on file from various individuals and/or companies
knowledgeable of the type of assets appraised They include, but are not limited to, the
following:
- Gates Development Company
- Jack Scholler Equipment
- Peterson Machine Tools
- DEK Communications
Bundy Lock & Key
ABE Furniture;
• Review of cost and market data on file in the DM&A library;
• Various publications and websites providing replacement cost new, including, but not
limited to:
- Acme Display and Fixture Catalog
- Victory Display & Store Fixture Catalog I
- Bestbuy.com
- Sears.com
- Joebakerequipsales.com
- Merchantwarehouse.com
- Craigslist.com
- Directron.com
- Toolrage.com
- Grainger Industrial & Commercial Supply
- Marshall Valuation Service
- RS Means Construction Cost Data
- Craftsman Tool Catalog
- Staples Catalog
- Supenor Products Wholesale Catalog
5 DM^ �
Office Depot Catalog
- Sign Contractors Price Guide
- National Business Furniture Catalog
Homedepot.com; and
Various publications providing secondary market data, including:
Ebay.com
Usedprice.com.
Valuation Analysis
Fair Market Value (in Place)
Fair market value in place represents the investment that would be required to replace existing
assets in their present form and condition using valuation methodology which considers the
manner in which the equipment is acquired and put in use when a total business is being created
or relocated. In other�words, fair market value in place is the value of an asset, designed to fit the
specific requirement of the business owner, in an amount which ownership would be justified,
given alternative investment opportunities, by a prudent investor contemplating retention of the
asset in its present economic employment.
There are three fundamental techniques applied in the valuation of assets. These techniques are
based on the cost to acquire (Cost Approach), the cost at which an asset may change hands in the
marketplace (Market Data or Direct Sales Comparison Approach) and the present worth of
expected future cash flows (Income Approach) The principle of substitution is important to the
development and application of the three approaches.' This principle provides that a prudent
investor will pay no more for an asset, property or business than he would be required to pay for
a replacement serving as a reasonable substitute of equal utility.
This appraisal has relied upon the Cost Approach and Market Data Approach methodologies.
The Cost Approach uses the concept of replacement based on the principle of substitution.
Replacement cost new is used as a basis for the valuation of the assets. The Market Data
Approach uses the concept of cost at which an asset may change hands between a willing buyer
and willing seller. The income Approach was considered. However, there is not sufficient
financial data available to determine the income attributable to each of the assets appraised.
Fair market value in place is developed in two phases. The first phase is development of the base
acquisition value of an asset, and the second phase is estimating the cost/value associated with
the assembly, installation or construction of that asset. The total value developed in the two
phases is considered fair market value in place.
The acquisition cost of an asset may be represented by the cost of purchasing the item from a
used equipment dealer when the Market Data Approach is used, or the cost of purchasing from a
vendor of new machinery when the Cost Approach is used In both cases, additional costs
incurred to place the asset in service as part of an integrated operation may be given
consideration in estimating fair market value in place.
1 "The Principle of Substitution" Real Estate Appraisal Terminology, Byrl N Boyce, Ph D., Page 201
6 DMM
. •x:13-..
In utilizing the Cost Approach, the fair market value in place of the equipment was based on its
estimated replacement cost new less depreciation Depreciation is based on effective age,
remaining economic life, observed physical condition and economic and functional
obsolescence.
Current replacement cost for similar or equivalent units and installations were developed by
contacting manufacturers' representatives and the utilization of the DM&A reference library.
When necessary, these costs were adjusted through industry -accepted practices to reflect the
costs of these assets as of July 23, 2008.
In estimating the fair market value in place we have not given consideration to the economic
viability of the business and our conclusion assumes that the income supports the valuation.
Forced Liquidation Value
Forced liquidation values are based on market data on file, including conversations with used
equipment vendors and dealers, as well as observations of auction results for the same or similar
equipment.
SUMMARY AND CONCLUSIONS
Improvements Pertaining to the Realty
The application of the Cost Approach provides an indication of value. Based upon the
application of this approach to the various assets, our opinion of the fair market value in place
and forced liquidation value as of July 23, 2008 is as follows.
Fair Market Value in Place $59,370
Forced Liquidation Value $200
Movable Equipment
The application of the Cost and Market Data Approaches provides an indication of value. Based
upon the application of these approaches to the various assets, our opinion of the fair market
value in place and forced liquidation value as of July 23, 2008 is as follows:
Fair Market Value in Place $67,960
Forced Liquidation Value $20,585
7
.10
ADDENDA
CARQUEST
IMPROVEMENTS PERTAINING TO THE REALTY
EFFECTIVE DATE OF VALUE - JULY 23, 2008
Fair Market Forced
Item Value in Liquidation
No. Qty, Description, Place Value
1 2 Signs, 8" to 18" routed painted wood letters, "CarQuest $6,100 $0
Auto Parts Machine Shop", 3 -color, wall -mounted,
including 3 halogen spotlights, electrical
2 1 Sign, 8" routed painted wood letters, "CarQuest", 2 -color, 400 0
with routed graphic and mounting board, wall -mounted
3 1 Lot of decorative paint stripes, exterior of building, 1,200 0
18" and 12" high, 2 -color
4 1 Monument sign, Y x 6', 2 -sided, plastic fascias, 3" to 6" 1,850 0
vinyl letters, "CarQuest Auto Parts Machine Shop" with
graphics, stained softwood cabinet
5 70 Square feet of mini -blinds, plastic 250 0
6
212
Square feet of accordion security gate, storefront
3,850 0
mounted
7
357
Linear feet of fan belt hanger strips, metal hooks, wall-
1,350 0
mounted
8
1
Lot of supplemental electrical power distribution
30,000 0
dedicated to machine shop equipment and valance
lighting on parts shelving
9
1
In -ground safe, 8"
360 0
10
12.5
Square feet of security window bars, painted ornate iron
140 0
11
1
Alarm system, consisting of:
975 0
1 Control panel
1 Code pad
1 Key actuator
1 Glass break sensor
1 Lot of window sensor tape
2 Motion sensors
7 Contact sensors
1
2
CARQUEST
IMPROVEMENTS PERTAINING TO THE REALTY
EFFECTIVE DATE OF VALUE - JULY 23, 2008
Fair Market
Forced
Item
Value in
Liquidation
No.
Qty, Description
Place
Value
12
9 Audio speakers, ceiling recessed, wiring
1,350
0
13
2 Customer service counters, 42" high x 36" deep,
4,200
0
softwood frames, pegboard and wood fascia, laminate
tops, under shelving, consisting of 1- 14.5 linear feet,
1- 18 linear feet
14
1 Janitorial mixing faucet, plumbing
775
0
15
28 Linear feet of monorail crane, ceiling mounted, with
300
100
1/2 -ton motorized hoist, not in use
16
1 Lot of installation only of Internet equipment and data
2,150
0
cabling
17
3 Ceiling fans, consisting of:
300
0
2 48", 4 -paddle
1 36", 4 -paddle
18
1 Through -wall air conditioner, Amcor, including wall
570
30
penetration
19
1 Lot of pneumatic piping, in machine shop, PVC plastic,
850
0
fittings, valves, dryer, and quick connects
20
1 Lot of minor miscellaneous improvements and
2,400
70
installations, including, but not limited to, key box,
eyewash station, miscellaneous signage, incidental
shelving, hooks and fasteners, pegboard, wall filers,
1 overhead shelf, 12' x 3.5', bolts for floor safe and
shelving to walls, and installation only of point of use
'
water cooler
i
TOTAL IMPROVEMENTS PERTAINING
TO THE REALTY
$59,370
$200
2
I
CARQUEST
MOVABLE EQUIPMENT
EFFECTIVE DATE OF VALUE - JULY 23, 2008
30 1 Lot of personal property, not appraised ---- ----
31 1 Lot of pegboard hooks and miscellaneous accessories 300 100
32 1 Lot of miscellaneous signage 300 70
33 6 Miscellaneous racks, metal, consisting of: 150 50
2 Spinner racks, 6' to 7' high, metal
1 Angle iron floor rack, 2'x 3' x 2'
3 Folding dump tables, 4'x 3', metal frames, wood boxes
3
Fair
Market Forced
Item
Value in Liquidation
No.
Qty. Description
Place Value
21
5 Planters, 24" diameter x 28" high, concrete
$450 $120
22
1 Group of Telephone/Internet equipment, 1 control panel,
1,200 500
Cisco Systems, 1 Model no.: Cisco 800 Series, 1 Netopia,
Cayman 3000 Series, 1 modem, U.S. Robotics,
1 uninterruptible power source, Triplite, 6 hand sets,
Cisco, 7961 Series, Model no.: 79GIG, 1 wireless router
23
1 Upright vacuum, Hoover, Runabout
30 10
24
1 Lot of janitorial equipment
20 10
25
1 Lot of desk and cashier's accessories for 8 stations
200 60
26
1 Lot of minor miscellaneous -bins, displays, and small parts
130 30
storage units, various types and sizes
27
47 Open parts shelving units, boltless metal, softwood decking,
3,500 1,200
consisting of -
2 4'x Tx 3.5', 5 -tier
45 4'x 8'x 2, 6- to 9 -tier
28
6 Open parts shelving units, 4' x 8'x 2, metal frames and
150 60
shelving, 6- to 7 -tier
29
1 Lot of equipment and furniture, in storage, not appraised
---- ----
30 1 Lot of personal property, not appraised ---- ----
31 1 Lot of pegboard hooks and miscellaneous accessories 300 100
32 1 Lot of miscellaneous signage 300 70
33 6 Miscellaneous racks, metal, consisting of: 150 50
2 Spinner racks, 6' to 7' high, metal
1 Angle iron floor rack, 2'x 3' x 2'
3 Folding dump tables, 4'x 3', metal frames, wood boxes
3
CARQUEST
MOVABLE EQUIPMENT
EFFECTIVE DATE OF VALUE - JULY 23, 2008
Fair
Market Forced
Item Value in Liquidation
No. Qty, Description Place Value
34
1
Credit card processor, Verifone, Model no.: Tranz 380x2,
150
50
with printer, Verifone, Model no.: 900
35
1
Line printer, Oki, Model no.: Microline 420
50
30
36
1
Battery charger, CarQuest, CBC, Model no.: 2105
60
20
37
1
Cut off saw, Makita, Model no.: 2412N
25
10
38
1
Crimping machine, Gates, Model no.: PC707, mega crimp
1,000
350
'
with dies
39
1
Refrigerator, Caloric, over/under, 14 cubic feet
80
40
40
1
Microwave oven, Emerson, digital
20
5
41
2
Task armchairs, metal, fabric seats and backs
100
30
42
1
Steno chair, metal, fabric seat and back, casters
35
10
43
2
Guest armchairs, stained wood, vinyl seats and backs
80
20
44
8
File cabinets, metal, consisting of:
350
100
4 Letter size, 4 -drawer, I- with locking bar
4 Letter size, 2 -drawer
45
2
Desks, 62" x 32", metal, laminate tops, double pedestal
300
80
46
1
All -in -one machine, Brother, Model no.: 782ON
120
30
47
1
Printer, Hewlett Packard, Model no.: LaserJet 2420dn
250
100
48
1
Group of minor office furniture, consisting of
40
15
1 Table, 28" x 16", stained wood, 2 -tier
1 Bookcase, 2x2', stained wood, 2 -tier
4
CARQUEST
MOVABLE EQUIPMENT
EFFECTIVE DATE OF VALUE - JULY 23, 2008
5
Fair
Market
Forced
Item
Value in
Liquidation
No.
Qty.
Description
Place
Value
1 End table, 2'x2', laminate
1 Stacking chair, tubular metal, vinyl seat and back
49
1
Floor safe, Major, Model no.: 1718, Serial no.: 202181,
180
50
17" x 24" x 23", single door, single dial
50
1
Television, Magnavox, 13", color, with built-in VCR
30
10
51
1
Desk, 72" x 36", laminate, double pedestal
210
60
52
1
Credenza, 6' long, laminate
190
50
53
1
Lot of miscellaneous gauges and hand tools
250
100
54
1
Shop armchair, plastic, fabric seat and back, casters
70
20
55
1
Flywheel surfacer, Sciedum, Model no.: RVF-600
400
150
56
1
Brake lathe, Hunter, Model no.: BL5050, Part no.:
2,500
1,000
105-389-1, Serial no.: JJ8337, with metal stand, casters
57
1
Machine stand, 30" x 17", metal, 2 -tier
60
20
58
1
Shop desk, 34" wide, metal, with upper invoice shelf
100
30
I
59
1
Workbench, 72" x 30", metal
50
i
20
60
1
Alternator/starter test bench, Amfor Electronics,
350
120
Model no.: 881
61
1
Workbench, 60" x 30", metal, under shelf, upper pegboard,
150
50
with heavy duty vise, 6"
62
1
Pallet jack, Big Joe, 4,500 lb. capacity (estimate)
120
50
63
6
Bar stools, chrome frames, padded vinyl tops
110
i
30
5
CARQUEST
MOVABLE EQUIPMENT
EFFECTIVE DATE OF VALUE - JULY 23, 2008
Fair
Market Forced
Item Value in Liquidation
No. Qty. Description Place Value
64 3 Ladders, consisting of: 160 50
1 Step, 6', aluminum
1 Step, 4', Fiberglass/aluminum
1 Extension, 24', aluminum
65 30 Rubber floor mats, various sizes
66 6 Computers, Hewlett Packard, Model no.: RP5000,
including -
6 Flat screen monitors, Hewlett Packard, Model no.:
1702
6 Keyboards
6 Mice
5 Metal and wood cash drawers
1 Set of mini -speakers
67 130 Linear feet of gondola wall shelving units, metal frame,
pegboard backing, consisting of:
42 Linear feet, 8' high, single -sided, including shelving
28 Linear feet, 8' high, single -sided, including shelving
60 Linear feet, 8' high, single -sided, including shelving,
with 44 linear feet of upper light valance, fluorescent
fixtures, plastic fascias
68 2 Air tanks, 1- Rhino Tools, Model no.: RHO -9895,
1- manufacturer and model no. not available, 5 gallon
capacity
69 1 Storage cabinet, 3' x 6', metal, 2 -door
70 1 Point of use water cooler, Culligan, Smartap, 3 temperatures
71 162 Linear feet of gondola island shelving units, metal frames,
pegboard backing, consisting of:
64 Linear feet, 5' high, 2 -sided, including shelving,
4 promotional end caps
6
400 50
3,000 1,000
5,800 1,000
50 20
90 30
80 25
6,950 1,200
Z-31
7
CARQUEST
MOVABLE EQUIPMENT
EFFECTIVE DATE OF VALUE - JULY 23, 2008
Fair
Market Forced
Item
Value in Liquidation
No.
Qty; Description
Place Value
12 Linear feet, Thigh, 2 -sided, including shelving,
1 promotional end cap
26 Linear feet, 10' high, including shelving
24 Linear feet, 10' high, including shelving
36 Linear feet, 8' high, including shelving, 36 linear feet of
light valance, fluorescent fixtures, plastic fascias
72
1 Lot of vendor supplied displays and racks, not appraised
---- ----
73
1 Lot of shop tools, drill press, tool cabinets, etc., employee
---- ----
owned, not appraised
74
1 Bookcase, Tx 7', metal, 7 -tier
90 30
75
1 Shop press, Nugier, Model no.: H40-14AP, Serial no.: 2536,
300 120
40 -ton capacity, pneumatic, with stand and,fittings
76
1 Workbench, 72" x 30", metal, with heavy duty bench vise,
230 70
Columbian, Model no.: 505, 6"
77
1 Pressure test system, Kwik -Way, Model no.: 255, pneumatic
1,500 400
78
1 Open shelving unit, 4'x 3.5'x 2, heavy duty metal, 3 -tier
60 20
79
1 Valve grinder, Kwik -Way, model no. not available, with
800 250
2 -door metal cabinet
80
1 Aqueous parts washer, Mirachem, plastic
320 90
81
1 Surface milling machine, Comec, Model no.: RP900 MVA,
10,000 4,000
Serial no.: 9656, 220 volt
82
1 Cylinder honing machine, Peterson Machine Tools,
7,000 2,000
Model no.: HC3DP, Serial no.: 34951
83
1 Honing machine, Sunnen, Model no.: LBB -1499
2,000 700
7
CARQUEST
MOVABLE EQUIPMENT
EFFECTIVE DATE OF VALUE - JULY 23, 2008
8
Fair
Market
Forced
Item
Value in
Liquidation
No.
Qty, Description
Place
Value
84
1 Cap cutting machine, Tamco, Model: CG, Serial no.:
600
200
665268
85
1 Platen, grinder, Peterson Machine Tools, Inc., model no. not
1,000
300
available, 3' x P belt
86
1 Sand blasting cabinet, Blast -N -Peen by Zero Manufacturing
1,200
500
Company, Model no.: BNP55-6, Serial no.: 19702, with
collector
r
87
1 Seat and guide machine, Peterson, Model no.: TCMV-25,
9,000
2,500
work piece table (cradle), PMT, Model no.: XV02003,
43"x10"
88
1 Engine wash cabinet, Roto -Jet, Model no.: 1
1,000
350
89
1 Engine wash cabinet, Axe Equipment, not in use, not
300
150
operational
90
1 Engine crane, Ex -Cell, 2 -ton
200
70
91
1 Strut compressor, Branick, Model no.: MST -580
200
60
92
1 Air compressor, manufacturer and model no. not available,
600
200
2 cylinder, with horizontal tank, 200 gallon (estimate)
93
1 Dual grinder, Pro Value, 6", with light, metal stand
120
40
94
1 Group of miscellaneous minor store accessories, consisting
1,050
300
of:
2 Hand dirts, 32" x 18", plastic, 2 -tier
2 Floor fans, 1- 14", 1- 18"
1 Floor mat, 5'x 3', carpet on rubber, CarQuest logo
3 Wall thermometers
1 Trash can, metal
j
2 Cigarette urns
1 Banner, 10' x 3', vinyl, 6 words
8
CARQUEST
MOVABLE EQUIPMENT
EFFECTIVE DATE OF VALUE - JULY 23, 2008
Fair
Market Forced
Item Value in Liquidation
No. Qty. Description Place Value
2 Planters, 32" diameter x 22" high, concrete with plants
3 Stools, metal
1 Waste can, metal
9 Waste cans, plastic
1 Hand towel dispenser, plastic
2 Hand trucks
1 Oily waste can, 10 gallon, metal
i
1 Warehouse ladder, 16" wide, 4 -step, metal
1 Invoice wall filer, 5.5' high, metal
1 Pushcart, Tx 1.5', metal, 2 -tier
5 Fire extinguishers
3 Folding chairs, metal
I Folding table, 6'x 2.5', metal frame, plastic top
1 Bulletin board, Tx 2'
1 Stereo, Toyo, 8 -track
I Coffee maker
5 Wall clocks
1 Floor heater
1 Coat rack stand, Tx 6', metal, 2 upper shelves
1 Canister vacuum, 8 gallon; 3 HP
I Box fan
TOTAL MOVABLE EQUIPMENT
91
$67,960$20,585
;7
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CARQUEST, NEWHALL, CA
SAND BLASTING CABINET
AIR COMPRESSOR
CONTINGENT AND LIMITING CONDITIONS
(1) No responsibility can be taken by the appraiser for the inability of the owner(s) of this
business to sell the subject assets at the appraised value.
(2) No responsibility can be taken for the accuracy of information on the ownership of the
assets appraised. All information was provided by the business owner(s) or their
representative and is assumed to be correct. No warranty is given as to the accuracy of
such information.
(3) Disclosure of the contents of this appraisal report is governed by the bylaws and
regulations of the American Society of Appraisers and the Uniform Standards of
Professional Appraisal Practice (USPAP).
(4) No responsibility is assumed for matters legal in nature.
(5) No liabilities were considered. Value conclusions are free and clear of -liens, easements
and encumbrances.
(6) The fee for this appraisal report does not contemplate appearance in court or before other
governmental agencies as an expert witness. However, Desmond, Marcello & Amster
will appear if prior arrangements are made. Expert witness testimony will be
compensated for at the appraisers' professional fee rates.
(7) This appraisal and its conclusion are subject to review upon presentation of data which is
undisclosed or not available at this writing
(8) Neither all nor any part of the contents of this report, particularly as to the conclusion,
the identity of the appraiser, or reference to the American Society of Appraisers, shall be
conveyed to the public through advertising, public relations, news or other media without
the prior written consent and approval of the appraiser.
(9) No determination has been made as to whether any of the improvements pertaining to the
realty in this report constitute an interest in the real property for which the tenant is
entitled to share in compensation ultimately awarded for the real property.
(10) No responsibility is taken for changes in market conditions and no obligation is assumed
to revise the final report to reflect events or conditions which occur subsequent to the
date hereof
(11) Full compliance with all applicable federal, state, and local environmental, zoning and
similar laws and regulations is assumed, unless otherwise stated.
(12) The results of this appraisal including the opinion of value are made only for the stated
effective date of value and the purpose stated, and shall not be used for any other
purpose
(13) It is assumed that all required licenses, certificates of occupancy, consents, or other
legislative or administrative authority from any federal, state or local 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.
(14) The existence of hazardous substances, including without limitation, asbestos,
polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or
may not be present on the property, or other environmental conditions, were not called to
our attention nor were we aware of such during our inspection. We have no knowledge
of the existence of such materials on or in the property unless otherwise stated. We are
not qualified to test for such substances or conditions.. If the presence of such
substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous
substances or environmental conditions may affect the value of the property, the value
estimate is predicated on the assumption that there is no such condition on or in the
property or in such proximity thereto that it would cause a loss in value. No
responsibility is assumed for any such conditions, nor for any expertise or engineering
knowledge required to discover them.
(15) You agree to indemnify and hold harmless Desmond, Marcello & Amster from and
against any and all liabilities, damages, costs and expenses (including attorneys' fees)
which may be incurred by Desmond, Marcello & Amster as a result of any action(s)
brought against us in connection with our report.
(16) Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing
general assumptions and limiting conditions.
DESMOND, MARCELLO & AMSTER
TANGIBLE ASSET VALUATION SPECIALISTS
THE FIRM: GENERAL DESCRIPTION
Since 1968, Desmond, Marcello & Amster has provided clients in both the public and private sectors
with expertise in the valuation of closely -held businesses, professional practices, and specific tangible
and intangible assets, such as furniture, fixtures and equipment and goodwill. Since the enactment of the
California Eminent Domain Law of 1976, DM&A has specialized in providing valuation services for
eminent domain proceedings.
Desmond, Marcello & Amster has completed over one thousand appraisals under the California Eminent
Domain Law, for both government agencies and private parties. The valuation analysts at DM&A work
in conjunction with condemning agencies, business owners, attorneys, relocation agents, acquisition
agents, developers, and real property appraisers to provide defensible value opinions. Since 1976,
DM&A has provided litigation support in condemnation cases with unparalleled success in the
courtroom.
DM&A is staffed to provide its eminent domain clients a full breadth of valuation services. This multi-
disciplinary capability enables DM&A to address complex valuation issues involving furniture, fixtures
and equipment.
Desmond, Marcello & Amster offers the following eminent domain valuation services:
• Exposure estimates of goodwill loss and fixtures and equipment value for budgeting purposes,
• Preliminary fixture and equipment and goodwill loss studies;
• Comprehensive appraisal reports of goodwill loss, and fixtures and equipment,
• Analysis of precondemnation damages and inverse condemnation claims;
• Assistance in negotiating settlements;
• Expert witness testimony; and
• Educational seminars on goodwill loss valuation issues.
Litigation support services include:
Assistance in developing questions for depositions and interrogatories,
Review of opposing appraisals;
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Assistance in coordinating other key witnesses;
Outlining examination for direct testimony and cross examination; and
Development of rebuttal testimony.
PROFESSIONAL AFFILIATIONS AND DESIGNATIONS
Individual staff members of Desmond, Marcello & Amster are associated with the following.
American Society of Appraisers (Members and Candidates)
CFA Institute (Member)
International Right of Way Association (Member)
American Institute of Certified Public Accountants (Member)
California Society of Certified Public Accountants (Member)
Institute of Management Accountants (Member)
PUBLICATIONS
DM&A publishes the Compensable Business Loss Review, a technical newsletter first released in 1988.
The Review covers a wide array of eminent domain topics including valuation, acquisition, relocation and
legal issues.
LECTURES AND SEMINARS
Firm members regularly conduct seminars for public agencies, professional appraisal organizations and
law firms on how to appraise goodwill loss under §1263.5 10 of the California Eminent Domain Statute.
DM&A was chosen by the California Redevelopment Association as the goodwill loss trainer for the
Redevelopment Institute's Property Acquisition Workshop
EDUCATION
Members of the firm hold graduate and undergraduate degrees from the academic institutions of Harvard,
Wharton (University of Pennsylvania), University of Michigan, UCLA, Claremont McKenna College,
Loyola Marymount University, University of Southern California, and California State University, Long
Beach All firm members are regularly involved in continuing education courses in finance, accounting
and valuation.
January 12, 2009
Mr. Thomas Hines, Vice President
General Parts, Inc.
Dba Carquest Auto Parts
2635 E. Millbrook Road
Raleigh, NC 27604
Attn: Tim Pfeiffer, Field Director - West
CERTIFIED MAIL
Subject: Acquisition of Leasehold Interest and Improvements
Pertaining to Realty of General Parts, Inc. dba
Carquest Auto Parts, located at 24535 Main Street, Santa Clarita, CA
NOTICE OF HEARING REGARDING THE INTENTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA,
TO ADOPT A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF THE
LEASEHOLD INTEREST AND IMPROVEMENTS PERTAINING TO THE REALTY
OF GENERAL PARTS, INC., DBA CARQUEST AUTO PARTS, INC. LOCATED IN
THE CITY OF SANTA CLARITA COUNTY OF LOS ANGELES STATE OF
CALIFORNIA, BY EMINENT DOMAIN FOR THE CONSTRUCTION OF A
NEW LIBRARY IN DOWNTOWN NEWHALL
Dear Owner(s),
YOU ARE HEREBY NOTIFIED, pursuant to Code of Civil Procedure Section 1230.010 et.
seq., that the Redevelopment Agency of the City of Santa Clarita (Agency) intends to consider
the adoption of a Resolution of Necessity for acquisition by eminent domain the leasehold
interest at 24535 Main Street, Santa Clarita, CA and certain improvements pertaining to realty
(collectively, the "Improvements") for the construction of a new library in Downtown Newhall.
The Improvements are more specifically described and depicted on Exhibit "A" attached hereto,
incorporated herein by this reference.
A hearing will be held on Janaury 27, 2009 at 6:00 p.m., or as soon thereafter as the Agency can
hear said matter, at the Council Chambers, located at 23920 Valencia Boulevard, Santa Clarita,
California 91355. If the resolution is adopted at this meeting, it will authorize the Agency to
acquire the Improvements described herein by eminent domain for the construction of the new
library in Downtown Newhall (hereinafter, the "Library").
LA 94849-5075-7379 v
General Parts, Inc., dba Carquest Auto Parts
January 12, 2009
Page 2
Please take further notice that you have a right to appear and be heard at said Hearing on the
following matters and issues, and to have the Agency give judicious consideration to your
testimony prior to deciding whether or not to adopt the proposed Resolution of Necessity:
a. Whether the public interest and necessity require the proposed project;
b. Whether the proposed project is planned or located in the manner that will be most
compatible with the greatest public good and the least private injury;
C. Whether the Improvements sought to be acquired by eminent domain and described
in the Resolution of Necessity is necessary for the proposed project;
d. Whether the offer required by Government Code Section 7267.2(a), together with
the accompanying statement and summary of the basis for the amount established
as just compensation, was actually made to you and whether said offer and
statement/summary were in a form and contained all of the factual information
required by Government Code Section 7267.2(a);
e Whether the Agency has complied with all conditions and statutory requirements
necessary to exercise the power of eminent domain (the "right to take") to acquire
the Improvements described herein, as well as any other matter regarding the right
to take said Improvements by eminent domain, and
f. Whether the Agency has statutory authority to acquire the Improvements by
eminent domain; and
g. Whether the necessary notification of the Notice of Hearing, as required by the
California Code of Civil Procedure, Sec. 1245.235, was given in regard to the
Improvements;
h. Whether the project complies with all the provisions of California's Environmental
Quality Act,
A copy of the proposed Resolution of Necessity will be available upon your request for
inspection at the office of the City Clerk at 23920 Valencia Blvd., Suite 304, Santa Clarita, CA
91355, five (5) days after this Notice was mailed (January 12, 2009) and prior to the hearing at
the place of the hearing.
The issue of compensation relative to the acquisition is not a matter or issue being heard by the
Agency at this time. Your nonappearance at this noticed hearing will not prevent you from
claiming greater compensation as may be determined by a court of law in accordance with the
laws of the State of California. This Notice is not intended to foreclose future negotiations
between you and the representatives of the City and/or the Agency on the amount of
compensation to be paid for your Improvements.
LA #4849-5075-7379 v
-47
General Parts, Inc., dba Carquest Auto Parts
January 12, 2009
Page 3
If you desire to be heard, please be advised that a written request must be actually received by
the City Clerk prior to the commencement of the hearing on the Resolution of Necessity. If you
elect not to appear and not to be heard, you will only be foreclosed from raising in a court of law
the issues that are the subject of this noticed hearing and that are concerned with the right to take
the Improvements by eminent domain.
If you have any questions regarding this hearing, the offer, or have additional information
regarding the value of your Improvements, please contact me at (661) 255-4365 or Barbara Stoll,
Acquisitions Specialist at (661) 286-4046.
Sincerely,
Paul Brotzman
Director Community Development
RS
S \pr\open space & real pioperty\stoll\iedevelopment\carquest— notice of hearing
Enclosure
cc: Alan Sozio, City Attorney
An -nine Chaparyan, Redevelopment Manager
Harry Corder, Senior Engineer
LA #4849-5075-7379 vl
4--49
General Parts, Inc., dba Carquest Auto Parts
January 12, 2009
Page 4
Date of Mailing: Janaury 12, 2009
You may use the enclosure for the purpose of notifying the City of your intent and desire. to be
heard.
LA 1#4849-5075-7379 v I
Z�q��
NOTICE OF HEARING REGARDING THE INTENTION OF THE
REDEVELOPMENT AGENCY OF THE
CITY OF SANTA CLARITA, TO ADOPT A RESOLUTION OF
NECESSITY FOR THE ACQUISITION OF THE LEASEHOLD
INTEREST AND IMPROVEMENTS PERTAINING TO THE
REALTY OF GENERAL PARTS, INC., DBA CARQUEST AUTO
PARTS, INC. LOCATED IN THE CITY OF SANTA CLARITA,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
BY EMINENT DOMAIN FOR THE CONSTRUCTION OF A
NEW LIBRARY IN DOWNTOWN NEWHALL
REQUEST TO APPEAR AND BE HEARD
Name
Telephone
Address
Date
Signature
Mail or deliver to: City Clerk
City of Santa Clarita
23920 Valencia Blvd., Suite 304
Santa Clarita, CA 91355
LA 94849-5075-7379 v]