The market analyses, property valuations, and property profiles contained in this report were created through the partnership between National City and the SDSU Sage Project during the spring of 2014. Ten undergraduate students from various academic disciplines participated in a special study course, led by professors Dana Kuhn and Seth Kaplowitz, designed to provide students with an introduction to valuation theory via the develop-ment of National City’s Long-Range Property Management Plan (LRPMP).
California’s 400 plus redevelopment agencies were officially dissolved as of February 1, 2012, after approval from the legislature as part of the 2011 Budget Act. Real properties that were owned by the redevelopment agencies were then transferred to successor agencies to manage redevelopment projects currently underway, make payments on enforceable obligations, and dispose of redevelopment assets and properties. Health and Safety Code 34191.5 requires successor agencies to prepare and submit a LRPMP, which outlines the disposition and use of the real properties of the former redevelop-ment agency.
The LRPMP has two main components. The first is an extensive inventory of all proper-ties, includes parcel data, a history of acquisition, current leases, environmental studies and contamination, an analysis of transit oriented development potential, and any previous development proposals. The second component addresses the current use of the prop-erty and the disposition of the property, as well as identifying how the disposition of the property supports the advancement of the planning objectives of the successor agency.
National City’s successor agency is currently responsible for 15 sites with a total of 32 parcels, each of which must be analyzed in a report for the California Department of Finance. The students were responsible for analyzing documents provided by National City, compile the information gathered and prepare a draft of National City’s LRPMP. The students were divided into three groups of three, with one student acting as Project Manager and analyzing a single parcel. The 16 sites were then divided amongst the three groups with one group focusing on the downtown area, another on the Bay Marina/ Harbor District and the final group on outlying properties.
One aspect of the LRPMP, an estimate of current value, required the students in the special study course to learn about valuation theory and perform a valuation analysis on each property. Before completing the valuation analyses the students were first required to study the real estate market in National City for a variety of uses, such as commercial/retail, residential, industrial, and hospitality. The market analyses enabled the groups to determine the highest and best use for each property, which directed the students in the method of valuation analysis.
After conducting the market analyses and determining the proposed highest and best use, students met with Trevor Hubbard, an appraiser with Jones, Roach & Caringella, Inc. Trevor reviewed the comparable sales and proposed highest and best uses the stu-dents provided and provided constructive criticisms, suggestions and directions regard-ing the process an appraiser would use to determine the value of commercial property. Each group then completed a sales comparison table, worked the comparable properties in an adjustment grid and, finally, wrote a valuation analysis that described the valuation process and issued an estimated value of each parcel.
The end result is a thorough and complete analysis of 15 sites that provides National City with the required components of a LRPMP. The LRPMP components are made available to the city in electronic format, which allows for any desired editing before being present-ed to the City Council and subsequently submitted to the Department of Finance. Lastly, city officials are now better equipped to make planning decisions by having access to current estimates of value and analyses of the highest and best use for these assets.
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