TRIALS AND TRIBULATIONS OF A ROAD WIDENING PROJECT Paula Gutierrez Baeza, Esq. Richards, Watson & Gershon Amer Attar, P. E. , MBA City of Temecula Joyce L. Riggs, MAI, SR/WA Riggs & Riggs, Inc.
PROJECT DESCRIPTION Purpose of Project Road is a Major Arterial Realign and Widen Road to Ultimate Configuration Connect Road to a Proposed Major Arterial Consistent with General Plan Road Before Project Center Dual Left Turn Lane Dead-Ends at a Bank Building South of Project
PROJECT DESCRIPTION Road After Project Two Lanes in Each Direction Landscaped Median Ability to Connect to Future Major Road Full Street improvements
PROPERTY DESCRIPTION Industrial Building Light Industrial Zoning Business Park General Plan Low Building Coverage Ratio Access From One Driveway Need for Small Area of Fee and Temporary Construction Easement for Project
IMPACTS TO PROPERTY Acquired Property and TCE Landscaping & Internal Circulation Road Impacts Widen Driveway New Raised Median – Restrict Left Turns Travel Distance for Truck from Freeway Before vs. After Condition
Driveway Before No Raised Median Driveway After Raised Median
Original Truck Route from Freeway 3800 Ft ~ ¾ Mile New Truck Routes from Freeway 9500 Ft ~ 1 ¾ Miles 10800 Ft ~ 2 Miles
NEGOTIATIONS WITH OWNER Attempts to Acquire Property with Owner by Negotiated Agreement No Success Council Adopted Resolution of Necessity Complaint Filed
APPRAISAL VALUATION Valuation of Larger Parcel – Entire Property Income Capitalization Sales Comparison Approach Valuation of Land Value – As Acquisition Area Included Land Only Site Improvements Value of Fee Part Acquired (Land & Site Improvements) Value of Remainder After Acquisition Value of Temporary Construction Easement
VALUATION OF THE PART ACQUIRED Land Area 13, 363 SF $/SF x $7. 50 % Rights Acquired x Indicated Value 100% $100, 223 Value of the Land - Fee Part Acquired SITE IMPROVEMENST/COMPONENT S $100, 223 UNIT PRICE COST 5, 850 SF $2. 50 PSF $14, 625 Asphalt Paving Total Site Improvements Indirect Costs (13. 0% of Direct Costs) Total Direct and Indirect Costs Entrepreneurial Profit (15. 0% of Total) Replacement Cost New of Hardscape Improvements $19, 005 Less: Depreciation (50. 0%) $ 9, 503 Depreciated Replacement Cost New of Hardscape $ 9, 503 Landscaping: Grass with Sprinklers 7, 513 SF $2. 50 PSF $18, 783 Trees 2 $350. 00 EA $ Total Landscaping Costs Indirect Costs (13. 0% of Direct Costs) Total Direct and Indirect Costs Entrepreneurial Profit (15. 0% of Total) Replacement Costs New of Landscaping $25, 318 Estimated Value in Place of the Improvements $34, 821 $14, 625 $1, 901 $16, 526 $2, 479 700 $19, 483 $2, 533 $22, 015 $3, 302
Summary of Part Acquired Valuation Value of the Land to be Acquired in Fee $100, 223 Plus: Value of the Improvements to be Acquired 34, 821 Total Value of the Fee Part Acquired $135, 044 *** Area Rate 9, 360 SF x $7. 50/SF x Percentage 10% Term x 1. 25 Year Value of Land Area in Temporary Construction Easement Value = $8, 775 All site improvements within the temporary construction easement area will be replaced in kind as part of the project.
SUMMARY OF VALUE CONCLUSIONS Value of the Whole Before Acquisition $2, 780, 000 217, 804 SF - site (fee) + improvements Value of the Part Acquired as Part of the Whole (Fee) 13, 363 SF of Land Site Improvements $135, 044 $100, 223 $ 34, 821 Value of the Remainder as Part of the Whole $2, 644, 956 Value of the Remainder After Acquisition, Disregarding Benefits $2, 644, 956 Severance Damages $ -0 - Value of the Remainder After Acquisition, Considering Benefits $2, 644, 956 Less: Benefits $ -0 - Net Severance Damages $ -0 - Estimated Just Compensation $135, 044 Value of Temporary Construction Easement Part Acquired: TCE 9, 360 SF of land $ 8, 775 Just Compensation for Temporary Construction Easement $ 8, 775 Total Estimated Just Compensation $143, 819 $145, 000 Rounded To:
LEGAL PROCESS Resolution of Necessity Filing of Complaint in Eminent Domain Answers Filed by Property Owner and Lessee Meetings on Site with Property Owner and Lessee Deposition of Lessee Mediation to Narrow Issues Exchange of Expert Valuation Data Settlement with Lessee Mediation on Valuation Issues No Settlement with Owner Deposition of Experts
DEFENDANT’S APPRAISER’S VALUATION Value of the Larger Parcel Value of Fee Part Acquired Land Value 13, 363 SF @ $13. 55/SF Improvements in Fee Area: Three Mature Trees Grass & Sprinkler System Chain Link Fencing w/Barb Wire Asphalt Paving Total Improvements $3, 600, 000 $ 286, 240 $181, 100 $50, 000 $41, 535 $ 1, 875 $11, 730 $105, 140 Temporary Construction Easement - 0 - Cost to Cure Damages (15% of $3, 600, 000) $ 540, 000 Severance Damages (20% of $3, 600, 000) $ 720, 000 Total Just Compensation $1, 546, 140
DEPOSITION OF EXPERTS Appraisal – Weakness in Property Owner’s Appraisal Errors Found Methodology Problems Architect Appraiser – 2 nd Day Follow Up Questions Traffic Engineer Weakness in Analysis Different Scale Used for Drawings Truck Turning Radius Different than Scale Used for Underlying Architectural Site Drawings
Truck Path Turning In Truck Path Turning Out
FURTHER SETTLEMENT TALKS After Depositions Identified Strengths and Weaknesses of Case Prepared Motions Consideration of Trial Costs Legal Expert Fees Exhibits Stronger Negotiating Position After Depositions Owner Settled for Less Than Original Offer
WRAP UP Owner’s Purpose in Challenging Acquisition – Rezone Property Light Industrial vs. Service Commercial
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