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HomeMy WebLinkAbout2009-01-27 - RESOLUTIONS - NEWHALL LIBRARY PROPERTY (4)RESOLUTION NO. RDA 09-2 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 Clarita, 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 27th day of January, 2009. /J 7 -e� ATTEST: SECRETARY 2 CHAIR STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, MMC, Secretary of the City of Santa Clarita Redevelopment Agency, 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 27th day of January, 2009, by the following vote: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS ABSENT: AGENCY MEMBERS 1 1 Kellar, Weste, McLean, Ender, Ferry None None 3 SECRETARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF REDEVELOPMENT AGENCY RESOLUTION I, Sharon L. Dawson, Secretary of the City of Santa Clarita Redevelopment Agency, do hereby certify that this is a true and correct copy of the original Resolution No. RDA 09-2, adopted by the Redevelopment Agency of the City of Santa Clarita, California on January 27, 2009, which is now on file in my office. Witness my hand and seal of the Redevelopment Agency of the City of Santa Clarita, California, this _ day of , 20_. Sharon L. Dawson, MMC Secretary By Susan Caputo, CMC Deputy Secretary 1 1 1 SUMMARY APPRAISAL REPORT OF IMPROVEMENTS PERTAINING TO THE REALTY 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 Los Angeles, Califomia 90045 Tel. (310) 216-1400 Fax (310) 216-0800 225 Bush Street, 16`" Floor San Francisco, California 94104 Tel. (415) 439-8390 Fax (415) 449-3643 Toll Free No. (888) 240-5184 www.dmavalue.com DM9A DMOA, August 15, 2008 Mr. Matt S. McCleary Rosenow Spevacek Group, Inc. 309 West 4`h 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., 1611 Floor San Francisco, California 94104 Tel: (415) 439-8390 Fax: (415) 439-8391 www.drnavalue.com 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. 1 1 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: Fair Market Forced Value Liquidation In Place Value Improvements Pertaining to the Realty Movable Equipment $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 \users\F & E\Smta CimW2442-02A CarQuot doc 1 DMM TABLE OF CONTENTS LETTER OF TRANSMITTAL APPRAISER CERTIFICATION Paye APPRAISAL REPORT 1 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 1 APPRAISER CERTIFICATION r— 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 limiting 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 '�J APPRAISAL REPORT PROPERTY APPRAISED 1 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 Clarita 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. 1 DMM 1 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(b) 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 economic obsolescence, as of a specific date. [Source: American Society of Appraisers, Principles of Valuation] 2 .ill ►',[rZ-7. 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 just 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 Age 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. 1 3 DMM 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 Major 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. Indqgry 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 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 - 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 Superior Products Wholesale Catalog 5 DMM 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. ' "The Principle of Substitution" Real Estate Appraisal Terminology, Byrl N. Boyce, Ph. D., Page 201 r► • 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 IpMrovements 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 1 7 DMM ADDENDA 1 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 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, I overhead shelf, 12'x 3.5', bolts for floor safe and shelving to walls, and installation only of point of use water cooler 1 TOTAL IMPROVEMENTS PERTAINING TO THE REALTY $59,370 $200 0 3 CARQUEST MOVABLE EQUIPMENT EFFECTIVE DATE OF VALUE - JULY 23, 2008 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 4 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, 1- with locking bar 4 Letter size, 2 -drawer 45 2 Desks, 62" x 32", metaI, laminate tops, double pedestal 300 80 46 1 All -in -one machine, Brother, Model no.: 7820N 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, 2' x 2', stained wood, 2 -tier 4 CARQUEST MOVABLE EQUIPMENT EFFECTIVE DATE OF VALUE - JULY 23, 2008 Fair Market Forced Item Value in Liquidation No. Qty, Description Place Value 1 End table, 2'x 2', 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 59 1 Workbench, 72" x 30", metal 50 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 30 5 1 1 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 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, 5' high, 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, 3' x 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 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 carts, 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 I Trash can, metal 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 1 Warehouse ladder, 16" wide, 4 -step, metal 1 Invoice wall filer, 5.5' high, metal 1 Pushcart, Y x 1.5', metal, 2 -tier 5 Fire extinguishers 3 Folding chairs, metal 1 Folding table, 6'x 2.5', metal frame, plastic top 1 Bulletin board, Y x 2' 1 Stereo, Toyo, 8 -track 1 Coffee maker 5 Wall clocks 1 Floor heater 1 Coat rack stand, 4'x 6, metal, 2 upper shelves 1 Canister vacuum, 8 gallon, 3 HP 1 Box fan TOTAL MOVABLE EQUIPMENT 0 $67,960 $20,585 1 1 1 1� F N a `PP�'w^ At �� F 7tl Y I 'iG'IDtI ��A7i®E!!'dlp6 r'ti.� 10 ppPUM, .. r7 OPF !{IPaEI/.i.° ns CY�illllt W. '�. ... °G dgb'iiMarnrw •F°A bhp t 'te 1 0611 soft alls u!Il f10 M T22 ago CARQUEST, NEWHALL, CA INTERNET EQUIPMENT PARTS SHELVING 7 U Nei '9k 77; ,jp ........... Elf U Nei '9k 77; ,jp CARQUEST, NEWHALL, CA MACHINE SHOP FLYWHEEL SURFACER 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. (1 1) 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. I (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. I(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 I 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; I • 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 § 1263.510 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.