CC 2014-09-23_08.i. Housing Successor Pearwood HillsMEMORANDUM
TO: CITY COUNCIUHOUSING SUCCESSOR TO THE DISSOLVED
REDEVELOPMENT AGENCY
FROM: STEVEN ADAMS, CITY MANAGER ff.
SUBJECT: CONSIDERATION OF APPRAISAL OF PEARWOOD HILLS
PROPERTY
DATE: SEPTEMBER 23, 2014
RECOMMENDATION:
It is recommended the City Council/Housing Successor to the Dissolved
Redevelopment Agency: 1 ) authorize the City Manager to contract for an updated
appraisal of the Pearwood Hills property; and 2) appropriate $3,400 from the
Affordable Housing In-Lieu Fee Fund.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
It is recommended that the $3,400 cost be funded from the Affordable Housing In
Lieu Fee Fund since the property is a housing asset and the proceeds will be used
for an affordable housing purpose.
BACKGROUND: ,
The City owned 7.2 cicres just east of the City limit adjacent to the Pearwood Avenue
property, which had been acquired for drainage purposes. Drainage was detained in
a portion slightly over 2.5 acres. Therefore, approximately 4.5 acres of the property
consisted of an oak studded hillside knoll above the small valley that functions as the
storm drainage basin. As a result, in 2013, the City Council approved subdividing
and annexing the property. It was then sold to the Redevelopment Agency. Since
the property has been deemed a housing asset, it does not fall under the jurisdiction
of the Oversight Board to the Successor Agency to the Dissolved Redevelopment
Agency.
Item 8.i. - Page 1
HOUSING SUCCESSOR TO THE FORMER REDEVELOPMENT AGENCY
· CONSIDERATION OF APPRAISAL OF PEARWOOD HILLS PROPE~TY
SEPTEMBER 23, 2014
PAGE2
ANALYSIS OF ISSUES:
The steps involved in dissolving the Redevelopment Agency have been completed.
As a result, staff is. recommending the City proceed to sell the property so the
revenues ·can be used for affordable housing purposes, primarily targeted for the
proposed San Luis Obispo Housing Authority affordable housing project at the
property on Halcyon Road recently acquired with funding assistance from the City.
The first step is to obtain an appraisal. Staff .recommends the City contract with
Hawkes Real Estate Appraisal since they prepared the original appraisal used for the
acquisition of the property by.the Redevelopment Agency.
ALTERNATIVES: .
. The following alte~natives are presented for consideration:
Approve staff's recommendations;
Direct staff to seek proposals for the appraisal services;
Do not seek an appraisal at this time and delay consideration of sale; or
Provide staff other direction.
ADVANTAGES:
The appraisal will help ensure the City complies with State requirements for
dispo~ing of housing. assets and will help generate· revenues that can be used to
meet affordable·housing needs in the community. -
DISADVANTAGES:
Some neighborhood concerns were expressed regarding development of the
Pearwood Hills property when the subdivision was considered and approved.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item. . .
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted in front of the City Hall on Thursday, September 18, 2014
and on the City's website on Friday, September 19, 2019.
Attachments:
1 . Proposal for Appraisal Services
Item 8.i. - Page 2
September 11, 2014
Steve Adams
City Manager
City of Arroyo Grande
300 E. Branch Street
Real Estate Appraisal
4927 Coughlin Way
Santa Maria, California 93455
Telephone: 805-937-6375 Fax: 805-800-1134
HawkesAppraisal@ve1izon.net
Arroyo Grande, California 93420
By email
Re: Appraisal Proposal-Pearwood project, 7.16 acres, APN 007-462-001
Dear Mr. Adams:
. ' ''
As you requested I am submitting this proposal for an appraisal of the referenced real estate,
located off of Huasna Road just northeast of Pearwood Avenue in the City of Arroyo Grande.
The property is identified by Assessor's Parcel Number 007-462-001 and consists of7.16 acres .
of vacant land with an approved map for four residential parcels and an open space parcel with a
.drainage easement. The purpose of the appraisal is to estimate the current market value of the
100% undivided fee simple interest in the real estate. The appraisal is to provide the indicated
value for the entire property as it is, four lots with a fifth common lot, and will be competed for
the use of the City of Arroyo Grande as it pursues the marketing of the property. The appraisal is
to consider the real property only: personal property such as growing crops, equipment,
livestock, vehicles, :furnishings; etc., will not be considered in the analysis, The appraisal report
and its use will be subject to the statements, limiting conditions and other terms set forth in the
appraisal report. At your request, I can provide you with a copy of the standard. assumptions and
limiting conditions used. Any additional assumptions or limiting conditions required in order to
complete the assignment will be prominently identified in the assignment.
I can provide a· summary narrative appraisal report that will meet your requirements for a fee of
$3,400. The fee will be due one half as a retainer upon your acceptance of this proposal, and the
balance.upon delivery of the completed report. After I have received your authorization to
proceed, it ~ill take approximately seven to eight weeks .to complete the report. The time· frame
is my best estimate based upon my current work load: as my'work load changes, the amount of
time required 'to complete the assignment may change as well. At the time the appraisal is
authorized, I will provide a more current estimate of the completion date.. .
It should be noted that I previously appraised the property: the date of value was.January 14,
2009, the report was dated February 2, 2009, and the client for the assignme.nt was the City of
Arroyo Grande.
The appraisal report will be in a summary format sufficient for your current purposes, but while
the analysis will be complete, the report itself will not be suitable for some purposes. An
updated appraisal in a suitable format rp.ay be required if the value is to be used for other
purposes. This proposal does not include any additional work or updates. If the scope of the
ATTACHMENT 1
Item 8.i. - Page 3
assignment should be expanded at your request, the additional work will be billed at the current
hourly rate and added to the initial appraisal fee. The fee for expanding the scope of the project,
or such services as report updates, consultations, attendance at depositions, and appearances
before a court or administrative agency shall be billed at the rate current at the time the services
are performed or according to arrangement made in advance. The current rate for testimony
before a court, administrative agency, or in a deposition is $220 per hour: the rate for all other
additional services is $150 p~r hour. Any additional work will be billed on a periodic basis
(monthly, quarterly, etc.) and will be due within 30 days of billing. Any fee or portion of the fee
not paid when due as specified above shall be subject to a service charge of 1 1/2 percent per
-month on the unpaid balance.
In order to expedite this assignment, I will need the following:
1) Name and telephone number of the person to contact for access.
2) The approved map with all conditions. _
3) Any available engineering reports or studies on the property, including any on the cost to
develop the property.
The completion date cannot be met without these items.
This appraisal report will conform with and be subject to the requirements of the Uniform
Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board
of the Appraisal Foundation. The report will comply with the standards of the California Office
of Real Estate Appraisers, by which I am licensed as a Certified General Real Estate Appraiser.
Thank you for your interest in our services and for giving Hawkes .R,eal Estate Appraisal the
opportunity to be of service to you. If this proposal meets with your approval, please sign in the
space provided below and return a signed copy of the letter along with the retainer fee~
If you have any questions or need any additional information, please call me.
Authorized Representative( s)
Signature: _____________ __:_ ___ Date: ______ _
Name (Printed): -------------------------
Item 8.i. - Page 4
,K~~ ~-'~'"'-·Jf~
Real Estate Appraisal
4927 Coughlin Way
Santa Mana, Cahfmma 93455
Telephone: 805-937-6375 Fax: 805-800-1134
HawkesAppra1sal@verizon.net
PROFESSIONAL
QUALIFICATIONS
ED HAWKES
REAL ESTATE APPRAISER
Item 8.i. - Page 5
Real Estate Appraisal
4927 Coughlin Way
Santa Mana, California 93455
Telephone: 805-937-6375 Fax: 805-800-1134
HawkesAppra1sal@verizon.net
ED HAWKES
CGREAAG007710
Ed Hawkes has over 25 years of e>.<perience appraising real estate of ail types. Whife
the appraisal of agricultural real estate is a specialty, Hawkes Real Estate Appraisal
offers a full spectrum of real estate appraisal services including commercial, industrial,
and residential appraisals. Appraisals completed by Ed Hawkes have been used for
estate and business planning, tax return preparation, tax assessment appeals, litigation,
land acquisition-both by eminent domain and by negotiation, and financing.
After working several years in production agriculture; Ed Hawkes became a staff
appraiser for Bank of America, specializing in the appraisal of agricultural real estate,
equipment, and crops. He then spent ·several years managing farm and ranch real
estate for Bank of America and Wells Fargo Bank. Returning to appraisal, he worked
first as an independent residential appraiser, then as a staff appraiser with the firm of
Reeder, Gilman, and Associates, and, following another brief stint as an independent
appraiser, was the Chief Apprai.ser for Rincon Corporation, a full service agricultural real
estate firm. · In 2009, he left Rincon to start Hawkes Real Estate Appraisal. Over the
years, Mr. -Hawkes has accumulated extensive experience appraising property of all
types for a variety of clients and purposes. A partial list of clients is attached.
Item 8.i. - Page 6
Appraisal Experience
2009-Present
2000-2009
1998 -2000
1991 -1998
1989 -1991.
1983 -1985
Ed Hawkes
Certified General Real Estate Appraiser
California Certificate No. AG007710
Hawkes Real Estate Appraisal
Duties: Principal
Santa Maria, CA
Rincon Corporation
Duties: Chief Appraiser
Santa Maria, CA
Independent Real Estate Appraiser
Duties: Appraise agricultural, commercial, industrial, and
residential real estate on fee and subcontract basis
Santa Maria, CA
Reeder, Gilman & Associates: Appraisers & Consultants
Duties: Appraise agricultural, commercial, industrial, and multi-
family real estate.
Santa Maria, CA
Independent Real Estate Appraiser
Duties: Appraise single family residential real estate.
Santa Maria, CA
Bank of America, NT&SA, Appraisal Department
Duties: Appraise agricultural and residential real estate.
Yuba City, CA
Relevant Professional Experience
1988.-1989 Wells Fargo Bank, NA, Trust Real Estate Division
Duties: Manage trust owned agricultural real estate throughout
Southern California
Santa Maria, CA
1985 -1988 Bank of America, NT&SA, Agricultural OREO Dept.
Farm Management Section
Duties: Manage and market bank owned farms and ranches in
the Sacramento and San Joaquin Valleys
Sacramento, CA
International Right of Way Association Member #04743011
Education
California Polytechnic State University, San Luis Obispo
Bachelor of Science; Agricultural Management
Qualified Expert Witness: San Luis Obispo County Superior Court, Santa Barbara County
Superior Court
Continuing Education Subjects:
Eminent Domain Law; Skills of Expert Testimony; Conservation Easement Seminar;
Market Trends Seminars; Separating Real Property, Personal Property, and Intangible
Assets; Capitalization Theory and Technique; Condemnation Appraising; AppraisC!I
Consulting, Appraisal Review; Option Value; Farm Appraisal; Valuation for Financial
Reporting; Special Purpose Properties Seminar; IRS·Valuation Summit; USPAP; Federal
and State Laws and Regulations; Elements of California Real Estate Law, and others.
Item 8.i. - Page 7
Client List (Partial)
The following is a list of some of the clients served by Ed Hawkes over the last thirteen
years, first as part of Rincon Corporation, and then as Hawkes Real Estate Appraisal.
The list includes private individuals, estates, law firms, government agencies, and
financial, in·stitutional, agricultural, industrial, and commercial firms.
Agencies
Cambria Community Services District
City of San Luis Obispo
County of Santa Barbara
Los Osos Community Services District
Santa Ynez Band of Chumash Indians
USDA Farm Service Agency
Agricultural Firms
Apia
Billita Corporation
Hi Thompson Investments
King .Ranch
Rosemary Farms
Sierra Madre Ranch
Santa Maria Berry Farms
Sisquoc Ranch
Rancho Laguna Farms
Equity Ag Financial, Inc.
Sisquoc Ranch
Environmental Organizations
Land Trust for Santa Barbara County
Wildlife Conservation Board
Financial Institutions
Community Bank of Santa Maria
Community West Bank, N.A.
Rabobank
Mid Coast Mortgage
Mission Community Bank
Residential Mortgage Corp
Pacific Capital Bancorp
Wells Fargo Bank
Legal and Accounting Firms
Ambrecht & Associates
. Lapp, Fatch, Myers & Gallagher
Mullen & Henzel
Sinsheimer Juhnke Lebens & Mcivor
Twitchell & Rice
Weldon & DeGasparis
Oliver Sandifer & Murphy
Price Postel & Parma
Item 8.i. - Page 8