CC - Item 4A - Park Monterey - Closure Impact ReportROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY 9PUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: JULY 28, 2009
SUBJECT: PARK MONTEREY - CLOSURE IMPACT REPORT
SUMMARY
Big Island Property, LLC (Hawaii Property, Inc.), the owner of the Park Monterey mobile home park
located at 7433 Garvey Avenue, submitted a Closure Impact Report (the "Report") to the City of
Rosemead on July 21, 2008 to change the use of mobile home spaces (1A, 2A, and 3A) into a
parking lot for a future mixed -use development.
The Report was presented to the City Council for consideration at its June 23, 2009 meeting. After
some deliberation, the City Council directed staff to arrange for an independent appraiser to
provide a valuation of Units 1A and 3A (2A is currently owned by the park owner). Once the
appraisals were completed, staff was also directed to coordinate a meeting between all affected
parties to discuss the results of the appraisals. This information was to be presented to the City
Council at its July 14, 2009 meeting. However, at the request of the attorney representing Park
Monterey and the attorney representing Spaces 1A and 3A this item was continued to the City
Council's July 28, 2009 meeting to allow each party the time needed to review all the appraisals
and to negotiate an acceptable agreement between all parties. The negotiations took place
without the City's involvement and will be presented to the City Council verbally by the attorney
representing Park Monterey on July 28'".
Regardless of this information, it remains imperative that the City Council review the Report and
either accept it as complete or add additional mitigation measures pursuant to California
Government Code Section 65863.7(e) provided those measures do not exceed the reasonable
cost of relocation. It is legal counsel and staffs opinion that appropriate mitigation measures have
been provided and that no further mitigation measures are recommended given the option of
replacement within the same park and payment of moving costs as being reasonable options for
relocation, as well as the fact that neither resident requested a hearing on the Report.
Staff Recommendation
Staff recommends the City Council review, accept and file the "Closure Impact Report".
ANALYSIS
California Government Code Sections 65863.7 and 65863.8 establish the procedures to close a
mobile home park. As part of the closure process, the park owner must create a Report analyzing
the potential effects on the tenants of the closure of the mobile home park. The Report must
"address the availability of adequate replacement housing in mobile home parks and relocation
costs." The park owner must submit the Report to the City. If requested by the owner or by the
tenants, the City must have a hearing on the Report. At the hearing the City Council would review
the Report and determine whether to require the owner to mitigate the effelTE tbe_te ants
APPROVED FOR CITY COUNCIL AGENDA: NI 11��I11111
City Council Report
July 14, 2009
Page 2 of 2
beyond what is provided in the Report. If the City requires mitigation measures, those measures
may not exceed the "reasonable costs of relocation." In addition, the park owner must give at least
12 months notice to the affected residents that the park will be closing. Such notice was provided
to the tenants of Spaces 1A and 3A in July 2008 with a notice to vacate by July 31, 2009. No
notice was served on Space 2A as it is owned by the park owner.
The Report submitted by Big Island Property, LLC has been reviewed by legal counsel and found
to be in compliance with the State Government Code regulating mobile home park change of use
procedures.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process. In addition, staff sent
notice to Spaces 1A and 3A, as well as the park owner, informing them that this item would be on
tonight's City Council Agenda.
(Preep�a/red.�by: �^
"1 r A �"A v
Michelle G. Ramirez
Economic Development Administrator
Submitted by:
Brian Saeki
Community Development Director
Attachment A: Closure Impact Report
Attachment 8: Califomia Statues
Attachment C: Appraisal Reports (Space 1A & 3A)
ATTACHMENT A
July 17, 2008
HKC
HART, KING & COLDREN
Jahn H. Pentecost
ipentecost @hkdaw.com
Our File Number. 38010.001/4818. 9201 -0114v.1
�M&EETM
Brian T. Saeki
Redevelopment & Economic Development Manager JUL 2 1 2008
CITY OF ROSEMEAD
8838 E. Valley Blvd. BY ---------------------
Rosemead, CA 91770
Re: Change of Use of Property located at 7433 Garvey Ave., Rosemead, CA
Dear Mr. Saeki:
This office represents Big Island Property, LLC (Hawaii Property, Inc.), the owner of Park
Monterey (hereinafter the "Park "), a mobilehome park located at 7433 Garvey Ave. in
Rosemead, California.
The use of Spaces 1A, 2A, and 3A in the Park will be changed from mobilehome spaces to a
parking lot, effective July 31, 2009. We are enclosing herewith the Closure Impact Report
( "CIR ") and Relocation Plan along with copies of the Notice of Change of Use that are being
served upon the residents of Spaces 1A and 3A. No notice is being served on Space 2A for the
reason that that space is vacant.
If you have any questions regarding this matter, please contact the undersigned.
Very truly yours,
A Professional Law Corporation
200 Sandpointe, Fourth Floor, Santa Ana, California 92707
Ph 714.432.87001 www.hkciaw.com I Fk.714.546.7457
CLOSURE IMPACT REPORT
Park Monterey Trailer Park
7433 Garvey Avenue
Rosemead, CA 91770
OVERVIEW
According to information provided by the City of Rosemead, Park Monterey Trailer Park
( "Park ") was completed and opened in 1960.
Like most of the trailer parks of the early 1960s, Park Monterey was conceived as an
interim use of the land.
Today, the owner of Park proposes to close three spaces of the 39 spaces and remove
these spaces from residential housing in its present form. The current zoning of the
property is C -3.
The City of Rosemead does not have an ordinance specifically relating to the closure of
trailer parks. The provisions of State law are therefore applicable.
Government Code Section 65863.7 requires that prior to the closure of a mobilehome
park, the person proposing the closure shall file "a report on the impact of the ... closure
... upon the displaced residents of the park to be converted or closed. In determining the
impact of the ... closure ... on displaced mobilehome park residents, the report shall
address the availability of adequate replacement housing in mobilehome parks and
relocation costs."
This closure impact report addresses the availability of adequate replacement housing
in mobilehome parks and relocation costs, and assesses the impact of closure of the
mobilehome park upon the residents who will be displaced. Recommendations to
mitigate those impacts are proposed.
CLOSURE IMPACT REPORT - PAGE 1 OF 11
CURRENT STATUS OF PARK MONTEREY TRAILER PARK
Park Monterey Trailer Park is comprised of 39 spaces on 2.27 acres. The common
area facilities consist of a laundry room, drying yard, and restrooms.
The owner proposes to close only Spaces 1 -A, 2 -A and 3 -A.
On June 17, 2008, those 3 spaces were being used as follows:
Use of Spaces
1 Space is Vacant (Space 2 -A)
2 Spaces are used by resident -owned and occupied mobilehomes (Spacesl.A
and 3A.
This Closure Impact Report, therefore, addresses the impacts of closure of only the two
occupied spaces proposed to be closed, Spaces 1 -A and 3 -A.
CLOSURE IMPACT REPORT - PAGE 2 OF 11
Space 1A — 1962 Flamingo
1
M
CLOSURE IMPACT REPORT - PAGE 3 OF 11
Space 3A — 1982 Skyline
o
T
t. t
CLOSURE IMPACT REPORT - PAGE 4 OF 11
RELOCATION OF MOBILEHOMES
California law requires a permit to be obtained to move any unit that is defined as a
"mobilehome."
Mobilehomes are units that require permits to be moved on streets or highways. In
addition, permits are required for the installation of such units and the installation must
be inspected for compliance with state requirements. Consequently, mobilehomes are
almost always only moved by licensed transporters with set up and installation usually
performed by licensed contractors rather than by individual owners.
Mobilehomes are typically described by their width: "10'- wides" and "12'- wides" for the
single -width units and "doublewides" for two- section units.
The two Resident -owned units on spaces 1A and 3A in Park Monterey Trailer Park are
considered to be "mobilehomes" because they require permits to be moved..
Both of the mobilehomes are single section units (using le- wides "). Although additional
living space has been added on to the mobilehomes on spaces 1A and 3A, neither is a
double -wide unit.
Neither of the mobilehomes on spaces 1A and 3A at Park Monterey Trailer Park has a
carport awning. Both of the mobilehomes have skirting, although it is damaged at
several locations. There is minimal landscaping of spaces.
Consequently, the economic value of the subject mobilehomes in Spaces 1 -A and 3 -A
at Park Monterey Trailer Park is the "box value" of the units. That is, there is little value
beyond that of the mobilehome itself which can be argued to be attributable to tenant
improvements in landscaping or appurtenant structures.
If the owners of the mobilehomes on spaces 1A and 3A were able to relocate their
mobilehomes to a space in another mobilehome park, they would not experience a loss
in the value of their mobilehome; they may see some appreciation in value if they
relocate their mobilehomes to a more permanent mobilehome park that is in better
condition.
There are more than 500 mobilehome parks in Los Angeles County, containing more
than 45,000 spaces. Because of the large number of parks, it is not feasible to survey
all of the parks to determine how many spaces in the county may be vacant.
A survey of mobilehome parks in the immediate Rosemead area in May 2008 did not
identify any vacant spaces. While not frequent, there is some removal of older
mobilehomes not in good condition and, with only two mobilehomes to be relocated, it is
possible that a vacant space might become available.
CLOSURE IMPACT REPORT - PAGE 5 OF 11
Even with potential vacant spaces, park managements typically will not accept older
mobilehomes.. Mobilehome parks with vacant spaces may restrict occupancy only to
manufactured homes that are HUD Code homes (that is, manufactured since June 15,
1976), and typically not more than five years old.
Years of Manufacture of Mobilehomes
1962 Flamingo (Space 1A)
1982 Skyline (Space 3A)
The age and condition of the 1962 Flamingo mobilehome on space 1A makes it unlikely
that it can be relocated to another mobilehome park. However, because the 1982
Skyline is a HUD Code home, there is some prospect that another mobilehome park
might accept it.
Rents for spaces in other mobilehome parks in the Rosemead area are in the $500 to
$700, which is comparable to or slightly higher than the rents the occupants of spaces
1A and 3A are currently paying to Park Monterey.
ALTERNATIVE HOUSING
Those residents who, for various reasons, are unable (or unwilling) to relocate their
mobilehomes and themselves to more distant communities (where vacant spaces are
more likely to be found), will have to search for other housing alternatives in the
Rosemead and Greater Los Angeles area: apartments, duplexes, townhouses, rental or
purchase of single - family residences or condominiums, shared housing arrangements,
purchase of an existing mobilehome on a rented space in another mobilehome park.
Rents for comparable 2 bedroom /1 bath apartments in the Rosemead area are in the
range of $1,150 to $1,500 per month. Sometimes small houses can be found for rent in
the same dollar range.
Residents may also wish to relocate outside Los Angeles, possibly even to another
state, to be closer to relatives, for better employment or other opportunities, or to a
lower cost of living. In some instances, it may make economic sense to relocate the
mobilehome.
Individual interviewing and counseling of owners of mobilehomes in Park Monterey
Trailer Park will be necessary to determine specific needs, interests, and desires.
CLOSURE IMPACT REPORT -PAGE 6 OF 11
RELOCATION COSTS
Mobilehomes
The term 'reasonable costs of relocation" is not defined in Government Code Section
65863.7. It is, however, the costs of moving mobilehomes that set owners of
mobilehomes apart from renters of apartments and owners of recreation vehicles.
This report, therefore, addresses the cost of moving mobilehomes as "relocation costs."
Companies with experience in the tear -down, transportation, and reinstallation of
mobilehomes were contacted for estimates of the costs of relocating mobilehomes. The
companies were asked to estimate the cost of relocating a mobilehome based on the
following assumptions:
Single section mobilehome;
The owners having kept the wheels, axles, and tires on the units in
useable condition;
• A local move with easy access;
• Re -use of skirting and other materials;
• Expandos, screen rooms, porches, decks, and sheds not included.
Estimates of the costs to relocate a singlewide mobilehome like those in Park Monterey
Trailer Park vary widely because of the difficulty of trying to create a hypothetical
situation and the various situations that may be encountered. An estimate of the cost to
relocate a singlewide mobilehome is:
Estimate of cost to relocate mobilehome
— ^ - -_
Single
Prepare mobilehome to be moved
$400
Remove carport awning
350
Remove patio awning
281
Furnish/install tires & axles - rental
350
Remove skirting
125
Transport mobilehome
600
Set up mobilehome
1,300
Tie -down system (if required)
880
Reinstall carport awning
555
Reinstall patio awning
350
Furnish & install skirting
1,000
$6,191
CLOSURE IMPACT REPORT - PAGE 7OF 11
In addition, the person moving from one park to another would likely incur the expenses
of staying in a motel and eating meals in a restaurant for a number of nights that an
apartment renter would not.
The 'reasonable cost of relocation" of a singlewide mobilehome is approximately $7,500
to $8,000.
INFORMATION ABOUT PARK RESIDENTS
An effort was made to interview spokespersons for the residents of the mobilehomes on
spaces 1A and 3A.
The owner of the mobilehome on space 1A spoke with the consultant
Three attempts — a telephone interview and two letters requesting responses to a brief
questionnaire -- were made to obtain some basic information from the spokesperson for
the residents of the mobilehome on space 3A. The spokesperson declined to provide
information which could help the consultant to determine the impacts closure of space
3A could have upon its residents.
The information provided here attempts to strike a balance between maintaining
confidentiality and privacy of residents with the need to provide assessment of the
impacts of closure on the residents.
Space 1A is occupied by three adult males and two minor children. The men are
employed together in a commercial and residential glass installation and repair
business. The two children attend local elementary schools. As the customer base of
the glass business is Rosemead -area, and it is preferred that the children remain in
their schools, it is impractical for the residents of space 1A to relocate too far from Park
Monterey. An unwillingness to return to apartment living, and a preference for at least
the partial ownership of mobilehome park living, has also been expressed. It is unlikely
that the 1962 Flamingo could be relocated, so alternative housing — an apartment or
other rental dwelling, or a mobilehome in another park — would have to be found.
Based on information one of the occupants provided to park management, it is believed
that four persons reside in the mobilehome on Space 3A: three adults and one child. It
is not known whether the adults are employed in the area. It is assumed that the child
attends a local school. The 1982 Skyline on space 3A could possibly be relocated to
another mobilehome park. Although the chance of finding a vacant space in the
Rosemead area is slim, a vacant space could be found in an outlying area such as
Hemet. But without the willingness of the residents of space 3A to respond to
communications, the practicality of moving outside the Rosemead /Greater Los Angeles
area could not be determined at this time.
CLOSURE IMPACT REPORT • PAGE 8 OF 11
SUMMARY OF IMPACT OF CLOSURE OF SPACES 1A AND 3A
The social and economic impact of relocation will not be felt equally by all tenants.
Implementation of the Mitigation recommendations and the establishment of a fair and
reasonable Relocation Plan should minimize impacts and smooth relocation.
Relocation may offer the opportunity to improve the resident's living conditions by
moving to a better maintained mobilehome parks, or they may move into housing that
better meets current minimum building code standards or into more secure complexes
that provide better living environments.
CLOSURE IMPACT REPORT - PAGE 9 OF 11
Mitigation of Closure Impacts
Recommendation #1: RELOCATION PLAN
In order to provide for uniform, fair, and equitable treatment of owners of the two
mobilehomes, a Relocation Plan should be implemented to provide financial assistance
to park residents to smooth their relocation.
Recommendation #2: COMPENSATION TO OWNERS WHO WISH TO
RELOCATE THEIR MOBILEHOMES TO ANOTHER PARK
Owners of the two mobilehomes should be compensated for the actual costs of moving
their units to another park, not to exceed the "reasonable cost of relocation" of a trailer.
The Relocation Plan should provide for reimbursement of such costs within a radius that
will permit residents to Consider relocation of their units as broadly as possible.
Recommendation #3: COMPENSATION TO MOBILEHOME OWNERS WHO ARE
UNABLE TO SELL OR RELOCATE THEIR
MOBILEHOMES
If the owners of the two mobilehomes are unable to sell their mobilehomes because of
deteriorated condition, or who are unable to.move their units to another comparable
park within a 50 mile radius, should have the option of selling the unit to the Park. The
Relocation Plan should provide for appraisal of the unit to determine its Fair Market
Value, excluding any allocation for in -place value. Government Code Section
65863.7(e) limits the amount of compensation to an amount that does not exceed the
"reasonable cost of relocation" of the mobilehome.
Recommendation #d: OWNERS OF MOBILEHOMES WHO HAVE "SPECIAL
NEEDS"
Relocation may pose unique problems for some owner - residents. The Relocation Plan
should be flexible enough to provide additional assistance to long -term residents of the
park who are aged or disabled and receiving SSI or have qualified for similar
government assistance programs.
Recommendation #5: GOVERNMENT ACTIONS TO MITIGATE THE IMPACT OF
CLOSURE OF THE TRAILER PARK
At the staff level, the City of Rosemead can provide assistance by helping to achieve
the reasonable participation and cooperation of residents in the relocation. In addition,
city housing and redevelopment staff can look into ways of assisting eligible residents to
achieve any priorities for Section 8 or other government - subsidised housing programs
that are local housing alternatives.
CLOSURE IMPACT REPORT - PAGE 10 OF 11
Legal Description of the Portion of Subject Property
Containing Spaces 1A, 2A, and 3A
7433 Garvey Avenue
Rosemead, CA 91770
Real property in the City of Rosemead, County of Los Angeles, described as follows:
The West 46 feet of the East 330 feet of the South 296 feet (measured to the center line
of Garvey Avenue) of Lot 4 in Block 2 of Subdivision of the Garvey Ranch, in the City of
Rosemead, in the County of Los Angeles, State of California, as per Map recorded in
Book 52 Pages 43 and 44 of Miscellaneous Records, in the office of the County
Recorder of said County.
CLOSURE IMPACT REPORT - PAGE 11 OF 11
RELOCATION PLAN
PARK MONTEREY TRAILER PARK
Rosemead, California
1. PURPOSE
The owner of Park Monterey Trailer Park, hereinafter "Park ", will cease use of Spaces
1 -A, 2 -A and 3 -A as mobilehome spaces. As a result, Park Monterey Trailer Park is
closing those spaces and withdrawing them from residential housing use.
This relocation plan has been developed to insure the uniform, fair, and equitable
treatment of owners of the two mobilehomes who reside at Spaces 1 -A and 3 -A (2 -A is
vacant) at Park Monterey Trailer Park in order to mitigate the impact of closure and
relocation. State law requires the owner to pay only the "reasonable costs of relocation"
of the mobilehome. Under this Relocation Plan, the owner proposes to pay significantly
more.
2. EFFECTIVE DATE, CLOSURE DATE, AND EXPIRATION
The "Effective Date" of this Relocation Plan is July 31, 2008. The Closure Date is
July 31, 2009. This Plan expires on the Closure Date.
3. PARTICIPANT
A. "Participant" is a person who is eligible to receive relocation assistance under
one of the four Programs of this Plan. To be eligible, the person must:
(a) at all times be in compliance with all local, State, and federal laws and
regulations; and
(b) . be a registered or legal owner of a mobilehome which lawfully occupies
Spaces 1 -A and 3 -A in the Park on the Effective Date; and,
(c) be using that same mobilehome as the person's only residence on the
Effective Date and continue to occupy that same mobilehome until the
Participant vacates the Park with the mobilehome; and,
(d) at all times until the person and the mobilehome vacates the Park, not be
in default of his or her rental agreement with the Park; and
(e) voluntarily vacate the Park with the mobilehome and any other personal
property, by not later than the Closure Date; and
(f) execute all documents reasonably required by the Park to confirm
Participant's acceptance of relocation assistance; and
38010.001/4814-2599-9106v. 1
Relocation Plan - Park Monterey Trailer Park - Page 1 of 8
(g) cooperate with the Park in the carrying out of this Relocation Plan
including providing documents and other information reasonably required
by the Park; and
(h) meet any of the additional eligibility requirements of the Program of this
Plan under which such person receives relocation assistance from the
Park.
If more than one person living in the same mobilehome meets the eligibility
requirements above, all of the residents of that mobilehome shall collectively be a single
Participant under this Plan.
Specifically, but not by way of limitation, "Participant" does not include (a) any current or
former employee, or their households, of Park Monterey Trailer Park; (b) any person or
persons or their households, who rent mobilehomes located in the Park; (c) non-
resident owners of mobilehomes in the Park; and (d) any person who does not accept
the benefits offered by this Relocation Plan and vacates by the Closure Date.
Any rights to participate in this Plan are personal and not assignable. For example, a
person who purchases one of the two mobilehomes at Spaces 1 -A or 3 -A in the Park
after the Effective Date is not eligible to be a Participant and will not receive any
relocation assistance from the Park. Participants may not be in default of their rental
agreement and all monies owed to Park by the resident must have been paid.
4. RELOCATION ASSISTANCE
The Park shall provide assistance to each Participant in order to mitigate the impact of
closure and relocation.
5. DETERMINATION OF "REASONABLE PARTICIPATION" BY PARTICIPANT
Reasonable acceptance of the assistance provided by this Plan is expected from each
Participant. Participation in the Plan will terminate if it is determined that Participant is
being unreasonable or that the Park is unable to relocate the Participant due to
Participant's inability to make a decision or unwillingness to accept an alternative. In the
event that a question develops, "Reasonable Participation" shall be determined by a
neutral third party. The Park intends to use Inland Fair Housing and Mediation Board as
the neutral third party mediator.
6. GENERAL PAYMENT PROVISIONS
All payments of Relocation Assistance Compensation shall be made by check issued by
the Park. No checks shall be issued unless all terms of any agreement between the
Park and a Participant have been satisfied and all documents required have been
executed.
38010.001 /4814 - 2599- 9106v.1
Relocation Plan - Park Monterey Trailer Park - Page 2 of 8
PROGRAMI
Mobilehome Owners Who Relocate Their Mobilehome to Another Park
7. PROGRAM ELIGIBILITY
Persons eligible for this Program (a "Program I Participant "), must (a) meet the eligibility
requirements in Section 3 of this Plan; and, (b) be the owner and resident of a
mobilehome on the Effective Date.
8. COMPENSATION
A. Park will pay the reasonable cost of moving the mobilehome to another location
or park selected by the Program I Participant within one hundred fifty (150) miles of
Park Monterey Trailer Park. The following expenses will be included in the cost
reimbursement to the Program I Participant:
1. Tear -down charges;
2. Towing or mileage charges;
3. Set -up charges and inspection fees;
4. Insurance on mobilehome and personal property during the move.
5. Any cost directly related to modifying or replacing personal property (such
as existing skirting or awning) to adapt it to the new location. Park is not
responsible for the purchase of any new personal property (such as
skirting or awning) which may be required at the new location or may be
desired by the resident.
Payment will be determined by competitive bids received only from licensed
mobilehome transport and installation contractors. Park will provide a list of three
approved contractors to.provide this service. As quickly as Park can, the Park will tell
the Program I Participant the payment amount. The Program I Participant will then
make any arrangements necessary for relocation of the mobilehome. If the Program I
Participant prefers to move or setup the mobilehome themselves, the Program I
Participant will receive the amount which would have been paid to a contractor. Any
contract with a transport company or with an installation contractor shall be between the
Program I Participant and the company or contractor.
B. Park will also pay the sum of $500.00 to offset the costs of temporary housing
during the period the mobilehome is being relocated to another site.
C. Park will pay $1,000.00 as the reasonable cost of relocation within 50 miles of
Park Monterey Trailer Park of Participant's personal belongings which cannot be
transported inside the mobilehome.
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Relocation Plan - Park Monterey Trailer Park - Page 3 of 8
The Program I Participant will then make any arrangements necessary for moving
personal property. Any contract with a moving company shall be between the Program
I Participant and the moving company.
D. The total sum of Compensation to be paid to any- Program I Participant by the
Park pursuant to Paragraphs 8.A. through B.C. shall not be less than nor greater than
$8,000.00.
E. Any Program I Participant who relocates from the Park quickly will be paid an
incentive bonus. The Incentive Relocation Payment will begin on the Effective Date and
the schedule of payments is as follows:
Incentive Date Bonus
relocate by October 31, 2008 $750.00
relocate by January 31, 2009 $500.00
relocate on or after February 1, 2009 $0
F. Park will make the relocation payments after the Program I Participant has
removed themselves and all property (including the mobilehome) from the Park and
signed the Release Statement. If expenditures are required to be made by the Program
I Participant in order to accomplish the move, Park will advance these costs if proper
documentation is made to establish the need for advance payment.
PROGRAM II
Mobilehome Owners Who Sell Their Units
9. PROGRAM ELIGIBILITY
Persons eligible for this Program (a "Program II Participant "), must (a) meet the
eligibility requirements in Section 3 of this Plan; and, (b) be the owner and resident of a
mobilehome on the Effective Date. In addition, to be eligible for the assistance provided
in Paragraph 11 of this Plan, the conditions in subsections a. or b. of that Section must
first be satisfied.
10_ VOLUNTARY SALE
A "Voluntary Sale" is a sale in which the Participant desires to sell the mobilehome
rather than relocate it.
If the Program II Participant decides to sell the mobilehome, Park will then work with the
Program II Participant to facilitate the sale. If the Program II Participant decides to
advertise the mobilehome for sale, the Park will reimburse the Program II Participant up
to $400.00 for advertising upon presentation of invoice. The Program 11 Participant must
notify the Park through the Relocation Assistance Director of all offers to purchase
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Relocation Plan - Park Monterey Trailer Park - Page 4 of 8
which are received, and the Program II Participant must seriously consider all
reasonable offers.
Participant must inform all prospective purchasers that the mobilehome must be
removed from Park Monterey Trailer Park upon sale.
11. FORCED SALE
A "Forced Sale" occurs because the mobilehome cannot be relocated for either of the
following reasons:
a. The Park and an independent third party have determined that the
mobilehome cannot be moved because of its deteriorated physical
condition; or,
At the sole discretion of
research of all locations,
space available within Los
can be moved.
12. COMPENSATION
the Park, and after extensive and complete
it is determined that there is no comparable
Angeles County onto which the mobilehome
A. The Park agrees to purchase any mobilehome which is subject to a "Forced
Sale" at the Appraised Fair Market Value of the mobilehome itself, appliances,
accessories, and appurtenant structures. The Fair Market Value shall be determined by
an independent third party who is qualified as an appraiser of mobilehomes for the
purpose of financing or sale. "Fair Market Value" means the probable price which a
mobilehome would bring in a competitive and open market under all conditions requisite
to a sale, the buyer and seller each acting prudently and knowledgeably, and assuming
the price is not affected by any undue stimulus. "Fair Market Value" does not include
any "in- place" value, or value attributable to its continued sifting on the rented space at
Park Monterey Trailer Park.
B. In addition, Park will pay the reasonable cost of relocation within 50 miles of Park
Monterey Mobilehome Park of Participant's personal belongings to another residence
up to $1,000.
The Program II Participant will then make any arrangements necessary for moving
personal property. Any contract with a moving company shall be between the Program
II Participant and the moving company. Compensable moving elements include
packing, transportation, un- packing and insurance. Transportation costs beyond 50
miles will not be compensable unless Park determines that relocation beyond 50 miles
is justified. In addition to payment for the cost of actual moving of personal property,
one -time connection fees related to gas, water, electricity, telephone, internet and
television service, are eligible for reimbursement. Compensation shall be not less than
nor more than $8,000.00..
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Relocation Plan - Park Monterey Trailer Park- Page 5 of 8
As an alternative to a professional move, a Program II Participant may elect to receive a
flat sum of $8,000.00 to move themselves, and /or to pay the costs of connection to
utilities at their new residence.
Should the moving costs for a Program II Participant be less than $8,000.00, the
difference between actual moving costs and the total Compensation of $8,000.00 may
be applied by the Program II Participant to security deposits or prepaid rent, or as part
or all of a down payment on a replacement dwelling, at their new residence.
C. Any Program II Participant who relocates from the Park quickly will be paid an
incentive bonus. The Incentive Relocation Payment will begin on the Effective Date and
the schedule of payments is as follows:
Incentive Date
Bonus
relocate by October 31, 2008 $750.00
relocate by January 31, 2009 $500.00
relocate on or after February 1, 2009 $0
D. Park will make the relocation payments after the Program II Participant has
removed themselves and all property (including the mobilehome if a condition of the
sale) from the Park and signed the Release Statement. If expenditures are required to
be made by the Program II Participant in order to accomplish the move, Park will
advance these costs if proper documentation is made to establish the need for advance
payment.
PROGRAM III
Mobilehome Owners Who Have "Special Needs"
13. ELIGIBILITY
Participants in Program III shall be limited to persons who meet all of the qualifications
to be eligible as Participants in Programs I or II and who, in the sole discretion of Park,
after a review and recommendation by the Relocation Assistance Director, are found to
have "special needs" beyond those anticipated in Programs I or 11.
It is the intent of the Park that eligibility for Program III be restricted to persons who are
genuinely "aged or disabled" and who, because of long -time residency (at least ten
years) in the Park, are most affected by relocation. In addition, Program III is intended to
assist those persons who qualify for government assistance or who need assistance for
a period of up to twelve months while qualifying for such assistance, or for whom the
support of family members, shared housing, or employment are not available.
Factors which will influence Park's decision as to eligibility for Program III will include,
but not be limited to, prior qualification of the resident for a bona fide government
assistance program intended to serve the needs of the aged or disabled (such as SSI or
38010.001 /48142599- 9106v.1
Relocation Plan - Park Monterey Trailer Park - Page 6 of 8
support for the fully disabled). Persons who are eligible for Social Security because of
their age are not automatically eligible.
14. COMPENSATION
Park will pay to Program III Participants a reasonable amount based upon Park's
determination of "special needs" relocation costs. Such compensation shall not exceed
$2,000.00.
38010.001/4814-2599-9106v. 1
Relocation Plan - Park Monterey Trailer Park - Page 7 of 8
July 17, 2008
HK &C
HART, KING & CDLDREN
John H. Pentecost
jpentecost @hkclaw.com
Our File Number. 38010.001/4812 -0125- 3122v.1
NOTICE OF CHANGE OF USE
To: All Homeowners and Residents at Space 1A
Park Monterey
7433 Garvey Avenue
Rosemead, CA 91770
Re: Chanqe of Use of Spaces 1A, 2A, and 3A
Dear Homeowners and Residents
PLEASE TAKE NOTICE THAT effective July 31, 2009, Spaces 1A, 2A, and 3A in Park
Monterey, 7433 Garvey Avenue, Rosemead, CA 91770, will no longer be used as spaces for
the placement of mobilehomes. The use of these spaces will be changed to a parking lot.
The property owner reserves the right to amend, supplement or otherwise modify this Notice,
and /or to provide additional notices regarding change of use as circumstances warrant.
JHP \LJL \klv
HART. KING &
Jdhn M. Pentecost
Authorized Agent for Big Island Property,
LLC (Hawaii Property, Inc)
A Professional Law Corporation
200 Sandpointe, Fourth Floor, Santa Ana, California 92707
Ph 714.432.87001 www.hkdaw.com I Fx 714.548.7457
HK &C
HART, KING & COLDREN
John H. Pentecost
jpentecost@hkdaw.com
July 17, 2008
Our Re Number. 38010.00114827- 6843- 8530v.1
NOTICE OF CHANGE OF USE
To: All Homeowners and Residents at Space 3A
Park Monterey
7433 Garvey Avenue
Rosemead, CA 91770
Re: Chance of Use of Spaces 1A. 2A, and 3A
Dear Homeowners and Residents:
PLEASE TAKE NOTICE THAT effective July 31, 2009, Spaces 1A, 2A, and 3A in Park
Monterey, 7433 Garvey Avenue, Rosemead, CA 91770, will no longer be used as spaces for
the placement of mobilehomes. The use of these spaces will be changed to a parking lot.
The property owner reserves the right to amend, supplement or otherwise modify this Notice,
and /or to provide additional notices regarding
JHP %LJL\kly
Authorized Agent for Big Island Property,
LLC (Hawaii Property, Inc)
A Professional Law Corporation
200 Sandpointe, Fourth Floor, Santa Ana, California 92707
Ph 714.432.67001 www.hkc[aw.com I Fx 714.546.7457
ATTACHMENT B
GOVERNMENT CODE
SECTION 65863.7 - 65863.8
65863.7. (a) Prior to the conversion of a mobilehome park to
another use, except pursuant to the Subdivision Map Act (Division 2
(commencing with Section 66910) of Title 7), or prior to closure of a
mobilehome park or cessation of use of the land as a mobilehome
park, the person or entity proposing the change in use shall file a
report on the impact of the conversion, closure, or cessation of use
upon the displaced residents of the mobilehome park to be converted
or closed. In determining the impact of the conversion, closure, or
cessation of use on displaced mobilehome park residents, the report
shall address the availability of adequate replacement housing in
mobilehome parks and relocation costs.
(b) The person proposing the change in use shall provide a copy of
the report to a resident of each mobilehome in the mobilehome park
at least 15 days prior to the hearing, if any, on the impact report
by the advisory agency, or if there is no advisory agency, by the
legislative body.
(c) When the impact report is filed prior to the closure or
cessation of use, the person or entity proposing the change shall
provide a copy of the report to a resident of each mobilehome in the
mobilehome park at the same time as the notice of the change is
provided to the residents pursuant to paragraph (2) of subdivision
(g) of Section 798.56 of the Civil Code.
(d) When the impact report is filed prior to the closure or
cessation of use, the person or entity filing the report or park
resident may request, and shall have a right to, a hearing before the
legislative body on the sufficiency of the report.
(e) The legislative body, or its delegated advisory agency, shall
review the report, prior to any change of use, and may require, as a
condition of the change, the person or entity to take steps to
mitigate any adverse impact of the conversion, closure, or cessation
of use on the ability of displaced mobilehome park residents to find
adequate housing in a mobilehome park. The steps required to be taken
to mitigate shall not exceed the reasonable costs of relocation.
(f) If the closure or cessation of use of a mobilehome park
results from an adjudication of bankruptcy, the provisions of this
section shall not be applicable.
(g) The legislative body may establish reasonable fees pursuant to
Section 66016 to cover any costs incurred by the local agency in
implementing this section and Section 65863.8. Those fees shall be
paid by the person or entity proposing the change in use.
(h) This section is applicable to charter cities.
(i) This section is applicable when the closure, cessation, or
change of use is the result of a decision by a local governmental
entity or planning agency not to renew a conditional use permit or
zoning variance under which the mobilehome park has operated, or as a
result of any other zoning or planning decision, action, or
inaction. In this case, the local governmental agency is the person
proposing the change in use for the purposes of preparing the impact
report required by this section and is required to take steps to
mitigate the adverse impact of the change as may be required in
subdivision (e).
a _ .
(j) This section is applicable when the closure, cessation, or
change of use is the result of a decision by an enforcement agency,
as defined in Section 18207 of the Health and Safety Code, to suspend
the permit to operate the mobilehome park. In this case, the
mobilehome park owner is the person proposing the change in use for
purposes of preparing the impact report required by this section and
is required to take steps to mitigate the adverse impact of the
change as may be required in subdivision (e).
65863.8. A local agency to which application has been made for the
conversion of a mobilehome park to another use shall, at least 30
days prior to a hearing or any other action on the application,
inform the applicant in writing of the provisions of Section 798.56
of the Civil Code and all applicable local requirements which impose
upon the applicant a duty to notify residents and mobilehome owners
of the mobilehome park of the proposed change in use, and shall
specify therein the manner in which the applicant shall verify that
residents and mobilehome owners of the mobilehome park have been
notified of the proposed change in use. Neither a hearing on the
application, nor any other action thereon, shall be taken by the
local agency before the applicant has satisfactorily verified that
the residents and mobilehome owners have been so notified, in the
manner prescribed by law or local regulation.
ATTACHMENT C
I"
a p p r a i a a I
July 10, 2009
Ms. Michelle Ramirez
Economic Development Administrator
City of Rosemead
8838 E. Valley Boulevard
Rosemead, California 91770
Re: Mobile Home at 7433 Garvey Avenue. Space I A. Rosemead, CA
Dear Ms. Ramirez:
We have been asked to estimate the fair market value of the mobile home at
Space IA Park Monterey, 7433 Garvey Avenue, Rosemead, CA 91170 as though removed
from its current site.
Assumptions and Limiting Conditions
We assume no responsibility for legal matters, nor do we render an opinion as
to the ownership of the subject asset.
No investigation of legal title was made and we render no opinion as to the
ownership of the asset or condition of the title. We assume:
(a) The title to the asset is marketable;
(b) Unless otherwise indicated in this report, the asset is free and clear of all
liens, encumbrances, and restrictions.
We assume there are no unexpected conditions of the asset that adversely
affect value. All opinions of value are presented as the appraisers' opinion based on the facts
and data appearing in the report. We assume no responsibility for changes in value and
market condition or the inability of the owner to locate a purchaser at the appraised value.
Testimony or attendance in court by reason of this appraisal shall not be
required unless previous arrangements have been made.
Ms. Michelle Ramirez
July 10, 2009
Page 2
We are unaware of any lawsuits or contractual obligations, other than those
specifically noted in this report, that would enhance or diminish the value of the subject
asset. If the presence of such matters is revealed, we reserve the right to modify our opinions
expressed in this report.
We have performed a limited appraisal using only one or two of the
traditional methods of valuation that are considered appropriate in the appraisal procedure.
A Complete Appraisal is a value estimate based on all three approaches to value (cost,
income and sales comparison).
The conclusions and opinions expressed in this report apply to the date of
value set forth in this report.
Possession of this report does not carry with it the right of publication, nor
may it be used for any purpose by any person but the client without the previous written
consent of the client and BTI Appraisal.
Identification of the Asset
The subject mobile home was manufactured in 1962. The original
dimensions were 14'x 56' but a subsequent 10' x 20' section was added resulting in a total of
984 square feet. The subject has aluminum siding exterior, asphalt tar paper roof, panel
interior, the bath, vinyl floor kitchen and carpeting for the rest of the home. It also has a roof
mounted cooler and two -door refrigerator, 4 -bumer range and oven, a two- position sink, and
a bath, toilet and sink. Based upon our inspection, we consider the unit to be in fair
condition.
Interest Being Appraised
Based on our interview with the property owner, it is our understanding that
the mobile home is his property and there are no known encumbrances.
Intended Use of the Appraisal
The intended use of this appraisal is to determine the fair market value of the
mobile home in as -is condition for a potential sale of the unit off site.
Date of Value
The appraiser physically inspected the mobile home on July 7°i, 2009. At the
request of Ms. Ramirez, the value of this report is specifically applicable to July 7s', 2009.
Ms. Michelle Ramirez
July 10, 2009
Page 3
Value Definitions
Fair Market Value is defined as the most probable price which an asset should
bring in a competitive and open market under all conditions requisite to a fair sale, the buyer
and seller each acting prudently and knowledgeably, and assuming the price is not affected
by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby: buyer and seller
are typically motivated; both parties are well informed or well advised, and acting in what
they consider their best interests; a reasonable time is allowed for exposure in the open
market; payment is made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto; and the price represents the normal consideration for the
asset sold unaffected by special or creative financing or sales concessions granted by anyone
associated with the sale.
Approach to Value
Our valuation approach includes a combination of efforts based on the value
conclusions being determined. If possible, we review the asset owner's original invoices that
reflect the details of the assets and their purchase prices and/or review the manufacturer's
catalogue for pricing and capabilities. We also contact the manufacturers for the model,
capabilities and price of its replacement model if the subject asset is no longer in current
production. We also contact dealers and auctioneers who specialize in the assets being
appraised to determine the current availability, demand and pricing of the same or similar
assets. We also review published auction prices as indicators of value. An extensive library
of manufacturers of personal property is also maintained and regularly updated.
In the subject appraisal, we have estimated the fair market value of the subject
property using the Sale Comparison Approach.
Data Collection Process
The extent of our data collection process includes an investigation of all
personal property attributes based on a physical inspection of the asset unless specifically
noted otherwise. We examine the age, model number, manufacturer and condition of the
asset in order to properly describe and value it. In situations where the asset is custom
designed and manufactured, we estimate the reproduction cost based on the individual
components, engineering requirements, assembly and installation. Whenever possible, we
also examine the actual costs incurred by the owner in its design and construction. In our
valuation approach we also consider the useful life of the asset, both physically and
functionally.
Ms. Michelle Ramirez
July 10, 2009
Page 4
In our analysis of the asset being appraised, we contacted the following
sources for pricing and background information:
- Ms. Barbara Gaylord of Pacific Manufactured at (951) 727 -0455.
- Fergy of Mr. Williams Manufactured Homes at (866) 537 -5272.
- Stan of Macy Homes at (866) 537 -5228.
- Carl of Advantage Home at (866) 639 -4663.
- Edward of Cousin Gary Home at (866) 862 -4060.
- Carlos of Action Mobile Homes Inc. at (866) 537 -5229.
We were unable to find any actual sale of a single mobile home of this
vintage in Rosemead, California or the surrounding area in the last two years. We did
identify three sales of 1963 mobile homes within one mile of the subject's complex in 2001,
2004 and 2006. The 2001 sale was for $3,000, the 2004 sale was for $3,500 and the 2006
sale was for $1,500. All three sales were for original single models. This is reflective of the
very limited market in the USA for this type of vintage mobile home. All of the dealers we
spoke with indicated that it would be very difficult to even find a mobile home park that
would allow a home this old on their site as most set the age limit between 10 and 15 years.
The dealers indicated that the most likely sale of a unit like this would be to sell it in Mexico,
or locally for a farm camp trailer. All of the dealers estimated the fair market value of the
unit in its original condition at between $2,000 and $3,000. The estimated cost of the build -
on was considered to add an additional $2,500.
Conclusion
Based on our investigation, together with the data and analysis contained in
this letter, it is our opinion that on July 9, 2009, the fair market value of the mobile home
was Fifty Five Hundred Dollars.
$5,500.00
Ve truly yours,
P� —
Ben F. Tunnell III, ASA
Chairman
BT:kp
I I502.rpt
Megan 'Rour6'��
Vice Chairman
e a m Kas^pre or Vice Pesi ent
SUBJECT PHOTOGRAPHS ADDENDUM
Living and kitchen area
A "'low
■� LAG
k
INFORMATION ON OUR COMPANY
BTI Appraisal specializes in valuations of real estate, businesses, intangible
assets, machinery and equipment and financial analysis. Since 1974, we have performed
extensive appraisals, valuations, inspections and research projects for virtually every need
including sales, loans, insurance, corporate, legal, I.R.S. and S.E.C. requirements, eminent
domain, feasibility and market studies, recapitalizations, ESOTs, economic damages and
government requirements. Our clients include law firms and insurance companies, as well as
lenders, corporations and governmental agencies. Various staff members normally
contribute to a report to meet specialized requirements. This group of experienced
professionals provides a broad range of in -depth coverage for a great diversity of project
needs.
The firm is managed by Ben F. Tunnell III, Chairman. His previous
background includes eight years with First Interstate Bank of California as Vice President at
their Corporate Headquarters in Los Angeles. Mr. Tunnell received a BA degree in
Economics from Claremont McKenna College and attended post - graduate courses at UCLA
and the American Institute of Banking where he also lectured. He has served on the Board of
Arbitrators for both the American Arbitration Association and the Better Business Bureau,
and was previously a Registered Investment Advisor and a Broker /Dealer with the Securities
and Exchange Commission as well as a licensed California Real Estate Broker. Mr. Tunnell
is a Certified General Real Estate Appraiser in the state of California, license #AG006964, in
the state of Arizona, license #31404, and in the state of Nevada, license #A.0006873 -CG. He
is also an ASA, the senior designation of the American Society of Appraisers, in Business
Valuation and is a member of the Institute of Business Appraisers. Mr. Tunnell is also a
member of the International Right of Way Association. He has qualified and testified in
Federal and Superior courts as well as arbitration proceedings as an expert witness in the
areas of economic analysis, business, equipment and real estate appraisals.
Megan O'Rourke, Vice Chairman, began working at BTI in 1990. She earned
a BA in English from the University of Southern California, and graduated magna cum laude
from Loyola Law School. Megan began her legal career at Gibson, Dunn & Crutcher LLP
where she practiced in both the real estate and corporate law departments, before returning to
BTI in 2003. Among her duties at BTI, Megan serves as a senior analyst in real estate,
economic analysis, machinery and equipment, business and intangible asset matters. Mrs.
O'Rourke is also an Associate Member of the American Society of Appraisers, a member of
the International Right of Way Association.
Mr. William Kasper, ASA, is a Senior Vice President and has been with the
company since 1987. His background includes a seven -year position as Senior Appraiser
with Marshall & Stevens, Inc. of Philadelphia and a five -year position as Auctioneer and
Appraiser with Daley Hodkin Corporation in New York, NY. At both firms, Mr. Kasper
specialized in machinery and equipment appraisals, many of which were performed for
various Fortune 500 companies. Mr. Kasper is a graduate of New York University, where he
received a B.A. Business Administration degree. He is a Senior Member of the American
Society of Appraisers.
REPRESENTATIVE BTI APPRAISAL CLIENT LIST
Attorneys
Berger Kahn
DLA Piper Rudnick
Gibson, Dunn & Crutcher
Hunt, Ortmann, Palffy, Nieves, Lubka, Darling
& Mah, Inc.
Koeller, Nebeker, Carlson & Haluck
Lewis, Brisbois, Bisgaard & Smith
Morgan Lewis & Bockius
Morris, Polich & Purdy
Murchison & Cumming LLP
O'Melveny & Myers
Robie & Matthai
Robinson & Wood, Inc.
Rutan & Tucker
Sabaitis & O'Callaghan, LLP
Coraorations and Institutions
California Ironworkers Union
Charles Drew University
Hoya Corporation
Kaiser Health Plan Asset Management, Inc.
Mark Taper Foundation
RBC Capital
Stone & Youngberg
The Annenberg Foundation
University of Southern California
U.S. Veterans Initiative & Cantwell- Anderson
Williams Service Corporation
Financial Institutions
American Premier Bank
Banco Popular
Bessemer Trust
California General Bank
Celtic Bank
J.P. Morgan Chase Bank
Union Bank of California
United Commercial Bank
Government Agencies
Caltrans
City of Alhambra
City of Anaheim
City of Burbank
City of Cerritos
City of Commerce
City of Covina
City of Downey
City of Glendale
City of Goodyear
City of Hawaiian Gardens
City of La Puente
City of Los Angeles
City of Monterey Park
City of South El Monte
City of Torrance
City of San Bernardino
County of San Bernardino
Internal Revenue Service
Los Angeles County Office of Education
Los Angeles Housing Authority
Metropolitan Transit Authority
San Diego County Counsel
State of California Department of Justice
U.S. Department of Army
Insurance Comnanies
AIG Domestic Claims
Allstate Insurance
California Fair Plan
Crusader Insurance
Farmers Insurance
Fireman's Fund Insurance
Great American Insurance
Hartford Insurance
Hawkeye Security Insurance
Safeco Insurance
Scottsdale Insurance Company
State Farm Insurance
Travelers Insurance
21 st Century Insurance
Zurich Insurance
CERTIFICATION
We, Ben F. Tunnell III, William Kasper and Megan O'Rourke, certify that, to
the best of our 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 our personal, impartial and unbiased
professional analyses, opinions and conclusions.
We have no present or prospective interest in the property that is the subject
of this report and no personal interest or bias with respect to the parties involved. We have
no bias with respect to the property that is the subject of this report or to the parties involved
with this assignment. Our engagement in this assignment was not contingent upon
developing or reporting predetermined results.
Our 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 this appraisal.
Our analyses, opinions and conclusions were developed, and this report has
been prepared, in conformance with the standards and reporting requirements of the Code of
Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute,
which include the Uniform Standards of Professional Appraisal Practice.
The use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives. Unless otherwise noted in writing,
the appraiser has done similar assignments to the subject and has the knowledge and
experience to complete this assignment competently.
William Kasper has made a personal inspection of the assets that are the
subject of this report. No one provided significant professional assistance to the persons
signing this report.
en Innell III, ASA
Chairman
D'
Mega 'Rourke -
Vice Chairman
/V e
William Kasper, A
Senior Vice President
July 10, 2009
Ms. Michelle Ramirez
Economic Development Administrator
City of Rosemead
8838 E. Valley Boulevard
Rosemead, California 91770
Re: Mobile Home at 7433 Garvey Avenue, Space 3A, Rosemead, CA
Dear Ms. Ramirez:
We have been asked to estimate the fair market value of the mobile home at
Space 3A Park Monterey, 7433 Garvey Avenue, Rosemead, CA 91170 as though removed
from its current site.
Assumptions and Limiting Conditions
We assume no responsibility for legal matters, nor do we render an opinion as
to the ownership of the subject asset.
No investigation of legal title was made and we render no opinion as to the
ownership of the asset or condition of the title. We assume:
(a) The title to the assets is marketable;
(b) Unless otherwise indicated in this report, the asset is free and clear of all
liens, encumbrances, and restrictions.
We assume there are no unexpected conditions of the assets that adversely
affect value. All opinions of value are presented as the appraisers' opinion based on the facts
and data appearing in the report. We assume no responsibility for changes in value and
market condition or the inability of the owner to locate a purchaser at the appraised value.
Testimony or attendance in court by reason of this appraisal shall not be
required unless previous arrangements have been made.
Ms. Michelle Ramirez
July 10, 2009
Page 2
We are unaware of any lawsuits or contractual obligations, other than those
specifically noted in this report, that would enhance or diminish the value of the subject
asset. If the presence of such matters is revealed, we reserve the right to modify our opinions
expressed in this report.
We have performed a limited appraisal using only one or two of the
traditional methods of valuation that are considered appropriate in the appraisal procedure.
A Complete Appraisal is a value estimate based on all three approaches to value (cost,
income and sales comparison).
The conclusions and opinions expressed in this report apply to the date of
value set forth in this report.
Possession of this report does
may it be used for any purpose by any pens
consent of the client and BTI Appraisal.
Identification of the Asset
not carry with it the right of publication, nor
m but the client without the previous written
The subject asset is a Skyline mobile home manufactured in 1982. The
original dimensions were 14' x 56' but a subsequent 10' x 20' section was added resulting in a
total of 984 square feet. The subject has aluminum siding exterior, a new roof, panel
interior, vinyl floor in kitchen and bath, and carpeting for the rest of the home. It also has a
new paneled ceiling, one window air conditioning unit and nine fixtures. Based upon our
inspection, we consider the unit to be in fair condition.
Interest Being Appraised
Based on our interview with the property owner, it is our understanding that
the mobile home is his property and there are no known encumbrances.
Intended Use of the Appraisal
The intended use of this appraisal is to determine the fair market value of the
mobile home in as -is condition for a potential sale of the unit off site.
Date of Value
The appraiser physically inspected the mobile home on July 7h, 2009. At the
request of Ms. Ramirez, the value of this report is specifically applicable to July 7s', 2009.
Ms. Michelle Ramirez
July 10, 2009
Page 3
Value Definitions
Fair Market Value is defined as the most probable price which an asset should
bring in a competitive and open market under all conditions requisite to a fair sale, the buyer
and seller each acting prudently and knowledgeably, and assuming the price is not affected
by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby: buyer and seller
are typically motivated; both parties are well informed or well advised, and acting in what
they consider their best interests; a reasonable time is allowed for exposure in the open
market; payment is made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto; and the price represents the normal consideration for the
asset sold unaffected by special or creative financing or sales concessions granted by anyone
associated with the sale.
Approach to Value
Our valuation approach includes a combination of efforts based on the value
conclusions being determined. If possible, we review the asset owner's original invoices that
reflect the details of the assets and their purchase prices and/or review the manufacturer's
catalogue for pricing and capabilities. We also contact the manufacturers for the model,
capabilities and price of its replacement model if the subject asset is no longer in current
production. We also contact dealers and auctioneers who specialize in the assets being
appraised to determine the current availability, demand and pricing of the same or similar
assets. We also review published auction prices as indicators of value. An extensive library
of manufacturers of personal property is also maintained and regularly updated.
In the subject appraisal, we have estimated the fair market value of the subject
property using the Sale Comparison Approach.
Data Collection Process
The extent of our data collection process includes an investigation of all
personal property attributes based on a physical inspection of the asset unless specifically
noted otherwise. We examine the age, model number, manufacturer and condition of the
asset in order to properly describe and value it. In situations where the asset is custom
designed and manufactured, we estimate the reproduction cost based on the individual
components, engineering requirements, assembly and installation. Whenever possible, we
also examine the actual costs incurred by the owner in its design and construction. In our
valuation approach we also consider the useful life of the asset, both physically and
functionally.
Ms. Michelle Ramirez
July 10, 2009
Page 4
In our analysis of the asset being appraised, we contacted the following
sources for pricing and background information:
- Ms. Barbara Gaylord of Pacific Manufactured at (951) 727 -0455.
- Fergy of Mr. Williams Manufactured Homes at (866) 537 -5272.
- Stan of Macy Homes at (866) 537 -5228.
- Carl of Advantage Home at (866) 639 -4663.
- Edward of Cousin Gary Home at (866) 862 -4060.
- Carlos of Action Mobile Homes Inc. at (866) 537 -5229.
We were unable to find any actual sale of a single mobile home of this
vintage in Rosemead, California or the surrounding area in the last two years. We did
identify a 2003 sale in Rosemead of a 1976 Crestline mobile home (12' x 45') for $7,500.
We also identified a 2001 sale in Rosemead of a double 1991 Cavco mobile home (16' x
60') for $20,000. This is reflective of the very limited market in the USA for this type of
vintage mobile home. All of the dealers we spoke with indicated that it would be very
difficult to even find a mobile home park that would allow a home this old on their site as
most set the age limit between 10 and 15 years. The dealers indicated that the most likely
sale of a unit like this would be to sell it in Mexico, or locally for a farm camp trailer. All of
the dealers estimated the fair market value of the unit in its original condition at between
$8,000 and $10,000. The estimated cost of the build -on was considered to add an additional
$2,500.
Conclusion
Based on our investigation, together with the data and analysis contained in
this letter, it is our opinion that on July 9, 2009, the fair market value of the mobile home
was Twelve Thousand Five Hundred Dollars.
$12,500.00
Very truly yours,
Ben F. unnell III, ASA
Chairman
B "f:kp
1 1502.rpt
Mega ' Omiau�
Vice Chairman
0 �
William Kasper, A
Senior Vice President
SUBJECT PHOTOGRAPHS ADDENDUM
0
Subject front
�.
!; -,r7'
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INFORMATION ON OUR COMPANY
BTI Appraisal specializes in valuations of real estate, businesses, intangible
assets, machinery and equipment and financial analysis. Since 1974, we have performed
extensive appraisals, valuations, inspections and research projects for virtually every need
including sales, loans, insurance, corporate, legal, I.R.S. and S.E.C. requirements, eminent
domain, feasibility and market studies, recapitalizations, ESOTs, economic damages and
government requirements. Our clients include law firms and insurance companies, as well as
lenders, corporations and governmental agencies. Various staff members normally
contribute to a report to meet specialized requirements. This group of experienced
professionals provides a broad range of in -depth coverage for a great diversity of project
needs.
The firm is managed by Ben F. Tunnel] III, Chairman. His previous
background includes eight years with First Interstate Bank of California as Vice President at
their Corporate Headquarters in Los Angeles. Mr. Tunnell received a BA degree in
Economics from Claremont McKenna College and attended post- graduate courses at UCLA
and the American Institute of Banking where he also lectured. He has served on the Board of
Arbitrators for both the American Arbitration Association and the Better Business Bureau,
and was previously a Registered Investment Advisor and a Broker/Dealer with the Securities
and Exchange Commission as well as a licensed California Real Estate Broker. Mr. Tunnell
is a Certified General Real Estate Appraiser in the state of California, license #AG006964, in
the state of Arizona, license #31404, and in the state of Nevada, license #A.0006873 -CG. He
is also an ASA, the senior designation of the American Society of Appraisers, in Business
Valuation and is a member of the Institute of Business Appraisers. Mr. Tunnell is also a
member of the International Right of Way Association. He has qualified and testified in
Federal and Superior courts as well as arbitration proceedings as an expert witness in the
areas of economic analysis, business, equipment and real estate appraisals.
Megan O'Rourke, Vice Chairman, began working at BTI in 1990. She earned
a BA in English from the University of Southern California, and graduated magna cum laude
from Loyola Law School. Megan began her legal career at Gibson, Dunn & Crutcher LLP
where she practiced in both the real estate and corporate law departments, before returning to
BTI in 2003. Among her duties at BTI, Megan serves as a senior analyst in real estate,
economic analysis, machinery and equipment, business and intangible asset matters. Mrs.
O'Rourke is also an Associate Member of the American Society of Appraisers, a member of
the International Right of Way Association.
Mr. William Kasper, ASA, is a Senior Vice President and has been with the
company since 1987. His background includes a seven -year position as Senior Appraiser
with Marshall & Stevens, Inc. of Philadelphia and a five -year position as Auctioneer and
Appraiser with Daley Hodkin Corporation in New York, NY. At both firms, Mr. Kasper
specialized in machinery and equipment appraisals, many of which were performed for
various Fortune 500 companies. Mr. Kasper is a graduate of New York University, where he
received a B.A. Business Administration degree. He is a Senior Member of the American
Society of Appraisers.
REPRESENTATIVE BTI APPRAISAL CLIENT LIST
Attorneys
Berger Kahn
DLA Piper Rudnick
Gibson, Dunn & Crutcher
Hunt, Ortmann, Palffy, Nieves, Lubka, Darling
& Mah, Inc.
Koeller, Nebeker, Carlson & Haluck
Lewis, Brisbois, Bisgaard & Smith
Morgan Lewis & Bockius
Mortis, Polich & Purdy
Murchison & Cumming LLP
O'Melveny & Myers
Robie & Matthai
Robinson & Wood, Inc.
Rutan & Tucker
Sabaitis & O'Callaghan, LLP
Corporations and Institutions
California Ironworkers Union
Charles Drew University
Hoya Corporation
Kaiser Health Plan Asset Management, Inc.
Mark Taper Foundation
RBC Capital
Stone & Youngberg
The Annenberg Foundation
University of Southern California
U.S. Veterans Initiative & Cantwell- Anderson
Williams Service Corporation
Financial Institutions
American Premier Bank
Banco Popular
Bessemer Trust
California General Bank
Celtic Bank
J.P. Morgan Chase Bank
Union Bank of California
United Commercial Bank
Government Aaencies
Caltrans
City of Alhambra
City of Anaheim
City of Burbank
City of Cerritos
City of Commerce
City of Covina
City of Downey
City of Glendale
City of Goodyear
City of Hawaiian Gardens
City of La Puente
City of Los Angeles
City of Monterey Park
City of South El Monte
City of Torrance
City of San Bernardino
County of San Bernardino
Internal Revenue Service
Los Angeles County Office of Education
Los Angeles Housing Authority
Metropolitan Transit Authority
San Diego County Counsel
State of California Department of Justice
U.S. Department of Army
Insurance Companies
AIG Domestic Claims
Allstate Insurance
California Fair Plan
Crusader Insurance
Farmers Insurance
Fireman's Fund Insurance
Great American Insurance
Hartford Insurance
Hawkeye Security Insurance
Safeco Insurance
Scottsdale Insurance Company
State Farm Insurance
Travelers Insurance
21 st Century Insurance
Zurich Insurance
CERTIFICATION
We, Ben F. Tunnell III, William Kasper and Megan O'Rourke, certify that, to
the best of our 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 our personal, impartial and unbiased
professional analyses, opinions and conclusions.
We have no present or prospective interest in the property that is the subject of
this report and no personal interest or bias with respect to the parties involved. We have no
bias with respect to the property that is the subject of this report or to the parties involved
with this assignment. Our engagement in this assignment was not contingent upon
developing or reporting predetermined results.
Our 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 this appraisal.
Our analyses, opinions and conclusions were developed, and this report has
been prepared, in conformance with the standards and reporting requirements of the Code of
Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute,
which include the Uniform Standards of Professional Appraisal Practice.
The use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives. Unless otherwise noted in writing,
the appraiser has done similar assignments to the subject and has the knowledge and
experience to complete this assignment competently.
William Kasper has made a personal inspection of the assets that are the
subject of this report. No one provided significant professional assistance to the persons
signing this report.
n Inell III, ASA
Chairman
Jlhow Mega 'Rout �� e
Vice Chairman
William Kasper, A
Senior Vice President