APPRAISAL REPORT

CHANATE CAMPUS PROPERTY LOCATED ON

CHANATE ROAD SANTA ROSA, CALIFORNIA

CONFIDENTIAL APPRAISAL DOCUMENT

DO NOT DISCLOSE

GOVERNMENT CODE 6254 (h)

Prepared for: Mr. William M. Severi, CCIM, CPM

North Bay Property Advisors

As of: June 15, 2021

By: Dana Burwell, MAI, ASA

P.O. Box 115 Healdsburg, California 95448

Dana W. Burwell, MAI, ASA

Real Estate Valuation - Consultation Post Office Box 115, Healdsburg, CA 95448

Tel: 707-433-7490 - Fax: 707-395-4105 email: danaburwell@aol.com

July 13, 2021

Mr. William M. Severi, CCIM, CPM North Bay Property Advisors 2777 Cleveland Avenue, Suite110 Santa Rosa, California 95403

Dear Mr. Severi:

Subsequent to your request and authorization, I have completed an appraisal report to estimate the Market Value of the Chanate Campus property located on Chanate Road in Santa Rosa, Sonoma County, California. The purpose of the appraisal is to estimate the market value of the property to assist in the marketing of the property.

Based upon my analysis of the available information, the Market Value of the subject property without consideration to any sewer or water credits, as of June 15, 2021, is considered to be:

TWENTY-THREE MILLION TWO HUNDRED FORTY THOUSAND DOLLARS ($23,240,000)

Hypothetical Condition:

The appraisal assumes that all buildings are removed and the property is free of any contamination. Thus, no consideration has been given to the cost to remove any of the buildings or to any potential remediation related to contamination.

The valuation stated herein is subject to the conditions and assumptions stated on the following pages. In addition, the report has been made in conformity with the Uniform Standards of Professional Appraisal Practice and is subject to the requirements of the Code of Ethics and the Standards of Professional Conduct of the Appraisal Institute.

Respectfully submitted,

Dana W. Burwell Certified General Real Estate Appraiser AG003696

EXECUTIVE SUMMARY

PROPERTY IDENTIFICATION: Chanate Campus Property Chanate Road, Santa Rosa, Sonoma County, California

Chanate Campus Prior

Site Plan County's BKF's

Tract/APN Map Reference Acres Acres

ONE

180-090-002 B 8.53

173-130-038 C 2.79

11.32 11.32

TWO

180-090-010 L 2.96 2.96

THREE

180-090-009 K 13.32 13.32

FOUR

180-090-001 A 3.00 3.01

FIVE

180-090-003 D 5.07

180-090-004 E 1.32

180-090-005 F 0.37

180-090-006 G 28.10

180-100-001 H 1.14

180-100-029 I 1.04

37.04 36.77

SIX

180-090-008 M 3.98 3.98

TOTAL ACRES 71.62 71.36

AS-IS PROPERTY DESCRIPTION: The Chanate Campus contains 71.36 gross acres and is located within the city limits of Santa Rosa. The property is estimated to have 46.48-net acres that can be developed given the seismic setback requirements and slope

conditions. The property is the former Sutter Hospital site and includes other associated building improvements. The property lies with a Fault-Rupture Hazard Zone representing portions of the Rodgers Creek Fault. BKF engineers has undertaken a study of the fault traces and has determined the buildable areas outside the fault lines.

ZONING: Most of the property is zoned PI, Public/Institutional use with a small area zoned R-1-6, Single Family Residential. The General Plan designation is Public/institutional and Very Low Density Residential. The property is currently unentitled and any development would require a prospective property owner to undertake an extensive entitlement process. Redevelopment of the property would require a General Plan amendment, rezoning, Tentative Map approval, Design Review approval, Hillside Development Permit and possible Conditional Use permit. The proposed project will most likely require an EIR. The city has indicated that they prefer to have the property developed with a mix of low and medium density residential development. Any proposed development would also be required to provide some level of below market or rent restricted residential units. The entitlement process could take from two to five years to complete.

PROPERTY OWNER: County of Sonoma

BUILDING IMPROVEMENTS: The current building improvements are assumed to be removed.

HIGHEST AND BEST USE: Hold for residential development

DATE OF VALUE: June 15, 2021

VALUATION INDICATORS:

$/Net Acres: $500,000/net acre for 46.48 net acres

AS-IS VALUE: $23,240,000

HYPOTHETICAL CONDITION: The appraisal assumes that the buildings are removed and the property is free of any contamination.

CERTIFICATE

I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.

I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.

I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

My engagement in this assignment was not contingent upon developing or reporting predetermined results.

My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the 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 appraiser did not base either partially or completely, his or her analysis and/or the estimate of value on the race, color, religion, sex, handicap, family status, health or national origin of the present or prospective owners, occupants or users of the subject property or the present or prospective owners, occupants or users of the properties in the vicinity of the subject property.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. I did make a personal inspection of the property that is the subject of this report.

As of the date of this report, I have completed the continuing education program of the Appraisal Institute.

Dana W. Burwell Certified General Appraiser License No. AG 003696

Identification of Subject Property ……………………………… 1

History ………………………………………………………….. 1

Estimated Marketing Time ……………………………………… 2

Objective of the Appraisal ……………………………………… 2

Date of Value …………………………………………………... 2

Date of Inspection ……………………………………………… 2

Competency …………………………………………………….. 2

Market Value "As-Is" on The Appraisal Date …………………. 3

Property Rights Appraised ……………………………………… 3

Scope of the Appraisal ………………………………………… 4 Definition of Market Value ……………………………………. 5

Assumptions and Limiting Conditions ………………………… 6

REGIONAL DESCRIPTION

Sonoma County Description …………………………………... 9

City of Santa Rosa ……………………………………………… 10

Santa Rosa Residential Market………………………………… 11

SITE DESCRIPTION …………………………………………………. 12

HIGHEST AND BEST USE……………………………………………. 18

THREE APPROACHES TO VALUE ……………………………….. 20

SALES C OMPARISON APPROACH TO VALUE

Methodology …………………………………………………… 21

Application ……………………………………………………... 21

Comparable Unentitled Property Sales ………………………. 21

Comparable Entitled Property Sales………………………….. 22

Chart of Comparable Property Sales………………………. 24

Analysis of Market Data ………………………………………. 26

Conclusion of Unit Value for Developable Area………………… 27

Conclusion of Property Value………………………………… 27

VALUE OF FEES/CREDITS R ELATED TO SEWER/WATER USES 28

DATA SHEETS

ADDENDA

Sewer/Water Usage/Rates Resume

TABLE OF CONTENTS

Title Page Cover Letter Certificate of Appraisal Table of Contents

INTRODUCTION

REPORT SUMMARY

Identification of Subject Property

The subject property is the Chanate Campus property, a 71.36-gross acre property located on Chanate Road in central Santa Rosa, between Nielsen Road to the west and Parker Hill Road to the east. Most of the property was the former Sutter Hospital site and includes other County buildings, many of which are vacant. Access to the property is from Chanate Road, a residential neighborhood street that provides access to surrounding residential subdivisions. The surrounding properties also include dedicated Open Space, several medical related office buildings and areas that are historical in nature and are protected, such as the Chanate Historic Cemetery. The property consists of twelve assessor parcels that are contiguous to each other and together represent an integrated property with significant development potential.

The net developable area consists of the 71.36-gross acre parcel less the fault shear zone setback area of 7.76 acres, less the secondary fault shear zone setback area of 3.05 acres and less the area with slopes of greater than 20% containing 14.07 acres. The net developable area is 46.48 acres.

The property is currently zoned for public use with a small area zoned for low density residential development. The property’s General Plan designation is Public/institutional and Very Low Density Residential. The property is currently unentitled and any development would require a prospective property owner to undertake an extensive entitlement process. Redevelopment of the property would require a General Plan amendment, rezoning with the City of Santa Rosa, a Tentative Map approval, Design Review approval and Hillside Development Permit. The City may also require an EIR. City planning staff may also require extensive studies that address land use issues related to a tree inventory, habitat study, soils study, traffic study, sound study and more. The city has indicated that they prefer to have the property developed with a mix of low and medium density residential development. Any proposed development would also be required to provide some level of below market or rent restricted residential units. The entitlement process could take from two to five years to complete, based on complexity and neighborhood concerns. The County has already held public hearings on the proposed redevelopment of the property and neighborhood interest has been intense.

History of Subject Property

The subject property has been owned by the County of Sonoma for at least fifty years. The property was declared surplus property and they began marketing the property in 2020. Several offers were received on the property. However, issues related to the seismic hazard area that bisects the property slowed the due diligence process. The County engaged BKF Engineers to undertake a complete evaluation of the seismic fault areas. This study was completed in early 2021 and the property is to be marketed

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again with the assistance of two prominent real estate firms

Marketing / Exposure Times

Marketing Time is the time it takes an interest in real estate to sell on the market subsequent to the date of an appraisal. Assumptions are made that the property will be marketed through professionals experienced with the particular property type and that the property will be offered for sale at a reasonable value and that the buyer or seller are not under duress to execute the sale.

Exposure time is the time a property remains on the market. Exposure time is always presumed to occur prior to the effective date of the appraisal

Based on the comparable sales, marketing time and exposure time are estimated at 9 to 12 months.

Purpose and Function of the Appraisal

I have been requested by Mr. William M. Severi, CCIM, CPM, representing North Bay Property Advisors, to estimate the Market Value of the Fee Simple Interest in the subject property. The function of the appraisal is to assist in marketing the property.

Use of the Appraisal Report

The contents and conclusions presented in this report have been prepared for the exclusive use of North Bay Property Advisors and representatives of the County of Sonoma. No other release or duplication is permitted without the written authorization of Dana W. Burwell. Please refer to item 18 of the Assumptions and Standard Limiting Conditions for further clarification.

Inspection of Subject and Date of Valuation

The exterior of the subject property was inspected by Dana W. Burwell on various dates in June 2021. The effective date of valuation is June 15, 2021.

Disclosure of Competency

The appraiser has extensive experience in appraising properties similar to the subject property. Over the past ten years, I have appraised mixed-use land and similar properties in the Sonoma County area. In addition, I have valued commercial real estate in the Sonoma County area for the past twenty years. The appraiser's qualifications are included in the addenda of this appraisal report.

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Market Value "As-Is" On Appraisal Date

The estimated Market Value of a property considers its condition observed upon the date of inspection and as it physically and legally exists without hypothetical conditions, assumptions, or qualifications as of the date the appraisal is prepared. In the case of the subject property, this value refers to the subject property as unentitled residential land that contains 46.48-net acres of developable land.

Hypothetical Condition

The appraisal assumes that all buildings are removed and the property is free of any contamination. Thus, no consideration has been given to the cost to remove any of the buildings or to any potential remediation related to any contamination.

Property Rights Appraised

Fee Simple Interest

The purpose of the appraisal is to estimate the Market Value of the Fee Simple Interest in the subject property as described herein.

The Fee Simple Interest is defined by the Appraisal Institute as an absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the government powers of taxation, eminent domain, police power and escheat.

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Scope of Appraisal

The scope of the appraisal assignment required investigating sufficient data relative to the subject property to derive an opinion of value. The depth of analysis was based on the significance of the appraisal problem. This appraisal assignment is a Narrative Appraisal Assignment as defined in the Uniform Standards of Professional Appraisal Practice. The appraisal assignment required the following steps:

• An inspection of the property and its neighborhood was conducted to determine the physical features and conditions of the subject in addition to its environment and surrounding influences.

• The appraiser also researched municipal records to ascertain current and historical assessment information and ownership data regarding the subject property.

• The subject property's current physical and legal conditions were researched in addition to its background and history.

• The market area was examined to determine existing and proposed inventory, demand and marketability of comparable properties.

• The highest and best use of the property was determined based on the factors of physical possibility, legal permissibility, financial feasibility and maximum productivity.

• Comparable properties were researched, inspected and the sales were verified with principles or brokers in the transaction.

• Based on a review and analysis of the market data, the market value of the subject property was estimated by the Sales Comparison to Value. Sales of residential land that sold as unentitled and entitled have been researched for comparison purposes to the subject.

• The value conclusion is subject to certain assumptions and limiting conditions.

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Definition of Market Value (FIRREA)

For the purpose of this appraisal, Market Value will be defined as follows:

The most probable price a property should bring in a competitive and open market under all condition’s requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus.

Implicit in this definition is the consummation of a sale as of the 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 each acting in what they consider their own best interest.

• A reasonable time is allowed for exposure in the open market.

• Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto.

• The price represents a normal consideration for the property sold unaffected by special financing or creative financing or sales concessions granted by anyone associated with the sale.

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General Assumptions and Standard Limiting Conditions

This appraisal is subject to the following limiting conditions.

1. The legal description and area dimensions furnished the appraiser is assumed to be correct. No survey of the boundaries of the property was completed.

2. I assume no responsibility for matters legal in character, nor do I render any opinion as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, except where noted, and the property is appraised as though free and clear, under responsible ownership and competent management.

3. Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations existing in the subject property.

4. No opinion is intended to be expressed on matters which require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers.

5. The exhibits in this report are included to assist the reader in visualizing the property. I have made no survey of the property and assume no responsibility in connection with such matters.

6. The distribution or allocation, if any, of the total valuation of this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. Any value estimates provided in the report apply to the entire property, and any proration or division of the total into fractional interests will invalidate the value estimate, unless such proration or division of interests has been set forth in the report.

7. The statements of value and all conclusions shall apply as of the date shown herein.

8. I assume no responsibility for economic or physical factors which may affect the opinions herein stated, which may be present or occur at some date after the date of value.

9. I have inspected, as far as possible, by observation, the land; however, it was impossible to personally inspect conditions beneath the soil; therefore, no representations are made as to these matters unless specifically considered in the appraisal. Further, no opinion is expressed as to the value of sub-surface oil, gas, or mineral rights, or whether the property is subject to surface entry for the exploration or removal of such materials, except as is expressly stated.

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10.This appraisal is predicated on the assumption that the existence of hazardous material, which may or may not be present on or near the property, was not observed by the appraiser, unless otherwise stated. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of asbestos or other potentially hazardous materials may affect the value of the property. The value estimate herein is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such condition, or for any expertise or knowledge required to discover them.

11.No engineering survey has been made by us. Except as specifically stated, data relative to size and area were taken from sources considered reliable. Furthermore, no warranty is implied with regard to physical or structural or operational deficiencies which are not disclosed to the appraiser and noted herein.

12.The appraiser assumes no responsibility for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise noted herein. The appraiser assumes that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined and considered in the appraisal report. The appraiser assumes that all required licenses, certificates of occupancy, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

13. Information, estimates, and opinions contained in this report are obtained from sources considered reliable and where feasible, has been verified. However, no liability can be assumed for information supplied by others.

14. I reserve the right to make such adjustments to the valuation herein reported, as may be required by the consideration of additional data or more reliable data that may become available.

15.All projections of income and expenses in this report are estimates of current market expectations, not predictions of the future. No warranty or representation is made that these projections will materialize. Where Discounted Cash Flow Analyses have been undertaken, the discount rates utilized to bring forecast future revenues back to estimates of present value, reflect both our market investigations of yield anticipations and our judgement as to the risks and uncertainties in the subject property and the consequential rates of return required to attract an investor under such risk conditions.

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16.The appraiser may not be required to give testimony or to appear in court or any governmental or other hearing by reason of this appraisal, unless prior arrangements have been made.

17.The appraiser has no present or contemplated future interest in the property which is not specifically disclosed in this report.

18.This report shall be used for its intended purpose only and by the parties to whom it is addressed as of the current date of valuation. Possession of this report does not carry with it the right of publication, or duplication. The signer of this report is subject to the Appraisal Institute Bylaws and Regulations. The Institute requires each member or candidate to control the use and distribution of each appraisal signed by such member or candidate. Therefore, except as hereinafter provided, the party for whom this appraisal was prepared may distribute copies of this report, in its entirety, to such third parties as may be selected by the party for whom this report was prepared; however, selected portions of this appraisal shall not be given to third parties without the prior written consent of the signatories of this report. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media without the written consent or approval of the author. This applies particularly to value conclusions, the identity of the appraiser or firm with which is connected, and any reference to the Appraisal Institute.

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REGIONAL AND NEIGHBORHOOD DESCRIPTION

County Description

The subject property is located in central Santa Rosa. Sonoma County is one of the original 27 counties in the state. It is the northernmost of the nine greater San Francisco Bay Area counties. Bordered on the north and east by Mendocino, Lake, and Napa counties and to the west and south by the Pacific Ocean, Marin County, and San Pablo Bay, its area encompasses 1,598 square miles.

The county extends 50 miles from north to south and has a width of about 35 miles. Geographically, Sonoma County is divided almost equally into mountainous regions, rolling hills and valley land. Three narrow valleys, separated by mountains, run north to south, which creates numerous microclimates within the county. Elevations in the county range from sea level to 4,262 feet at the top of Mt. St. Helena, where Sonoma, Napa and Lake Counties converge.

Sonoma County's climate is characterized by dry, pleasant summer months followed by a rainy season from November through April. Mean temperatures throughout the county vary significantly during the summer, ranging from the cool weather of the coastal area to the warmer climate of the inland valleys. Rainfall averages about 50 inches along the coast and about 30 inches in the valleys.

Between 1950 and 1980, Sonoma County's population tripled, with almost half the growth occurring during the 1970's. Between April, 1980 and April, 1990, the county's population increased by 88,541 people or 29.5%. This is equivalent to a compounded annual increase of 2.62 per year. During the last 3 to 4 years, annual growth in the County has more than kept pace with the growth during the decade between 1980 and 1990. However, it is expected that long term growth over each of the next two decades will be lower than the 1980-1990 decade, but still vigorous.

Between 1990 and 2015, the county population is expected to increase by another 119,742 persons. A major impetus behind the continued residential growth is the relative affordability of the County's housing stock, which has led to a northerly migration of households from more expensive inner Bay Area counties located to the

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City of Santa Rosa

south. According to the Association of Bay Area Governments (ABAG), absolute increases in household and population give Sonoma County a median ranking among the Bay Area counties. However, the rate of residential growth accords Sonoma County a ranking second only to Solano County for the long-term forecast.

Santa Rosa is the capital of Sonoma County and includes the County courthouses, County offices in addition to the city offices. As a result, the city is headquarters for most larger law firms, accounting firms and other financial related firms.

The city has a population of 178,488 persons as of 2018 and has grown over 30% over the past fifteen years. The city represents over 1/3rd of the County’s population and is considered the business, finance and retail service center for the County.

Santa Rosa has the largest housing base in the County and directly impacts housing development in the surrounding areas by its own housing developments. The surrounding communities are substantially smaller than Santa Rosa and are directly impacted by the city’s housing policies and available residential land. The surrounding unincorporated communities are rural in nature and have very limited development potential.

The city is bisected by Highway 101 (north-south) and Highway 12 (east-west), which have divided the city into four quadrants. Most of the new housing and commercial development is located on the west side of Highway 101 and represents more densely developed areas with local neighborhood centers. The most desirable areas of the city are located on the east side of the highway and include the residential areas of Bennett Valley, Fountaingrove, Rincon Valley and areas to the east. This area includes the two major high schools, a range of private schools, most of the established shopping areas and the downtown.

The downtown area is located directly east of Highway 101 and is cut by Highway 12. The core downtown area includes a significant amount of primary office space, three major shopping centers along its outskirts with the older established neighborhoods wrapping around the core downtown area. The downtown area is undergoing upgrading and renewal after years of neglect. The most significance improvement is the renovation and redesign of the Courthouse Square, the center of town.

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SANTA ROSA RESIDENTIAL MARKET

Santa Rosa is the fifth largest city in the Bay Area with a population of 178,488 as of January 2018. The City’s housing element is updated every eight years with the latest update in 2014 for the period 2015 to 2023. The ABAG Regional Housing Need Allocation (RHNA) has determined that the city should issue a total of 5,083 building permits over the eight-year period (approximately 635 permits per year) to meet its future housing needs. Permits include single-family, multi-family and second dwelling units. Furthermore, of the total required, 2,477 permits are to be for buyer income levels of extremely low to moderate and 2,612 permits are to be for buyers with above moderate-income levels. Over the past three years, since 2015, only 1,423 residential building permits were issued (355 permits/yr.), excluding the fire replacement permits, indicating a cumulative shortage of 1,120 permits (280 permits/yr.). A total of 3,660 permits are required to be issued over the coming five years, or an average of 732 per year. Thus, it appears that the city will be under increased pressure to expedite approvals for housing development over the coming years.

The Santa Rosa residential market is divided into four quadrants: southwest, southeast, northeast and northwest, with Highway 101 and Highway 12 being the north and east quadrants. Based on the January, 2021 housing development log, there are approximately 4,018 housing units that have been approved. This amount of housing units proposed or approved appears to exceed the number of housing units required over the next five years and portends well for a balanced housing stock. Within the four quadrants, over 65% of the new housing is planned in the SE and SW quadrants. Both quadrants have the most inventory of undeveloped land within the city limits.

Housing Development in NE Santa Rosa

As of January, 2021, there are 1,782 housing units in the process or having obtained approvals for development in NE Santa Rosa. This represents approximately 44% of total approved housing in the city of Santa Rosa. Of the approved projects, the multi-family projects consisting of 1,438 units and 344 units of single-family projects are in the progress of development. Clearly, development of multi-family housing projects creates more units on a density basis.

The city appears to be on a path of approving housing development that will support future population growth and meet ABAG RHNA needs. However, it appears important for the city to maintain a steady approval process in order to ensure that future projects are developed in a timely basis. Most of the growth is planned in the SE and SW quadrants of Santa Rosa where a significant amount of undeveloped land exists. Existing house prices in the SW quadrant appears to be very stable and indicates that different neighborhoods are not differentiated in the housing market. These trends indicate that housing development and housing prices appear to be balanced.

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SITE DESCRIPTION

Surrounding Environs

The subject property is located in the northeast quadrant of the city of Santa Rosa, bounded by the Fountain Grove development to the north, Lomita Heights subdivision to the west and the Town and Country Estates subdivision to the east. Both the Lomita Heights and Town and Country development are older established single family housing developments dating back to the 1960’s while the Nielsen Ranch development in Fountain Grove was developed in the 1990’s.

Chanate Road is a two-lane neighborhood street that serves at the major arterial through the area and connects Franklin Avenue and Lewis Road in the southwest with Fountain Grove Parkway in the northeast. The immediate area is less pedestrian oriented than the surrounding neighborhoods due to its older medical and office uses within the Chanate Campus area that were accessed primarily by automobile.

The Chanate Campus property is served by public utility services. Water and sewer are provided by the City of Santa Rosa. Pacific Gas & Electric provides gas and the City provides electricity while AT&T provides telephone services. The City provides police protection and fire protection.

Project Development Area

The net developable area consists of the 71.36-gross acre parcel less the 24.88-net acres of constrained areas equating to 46.48-net acres, outlined as follows:

Gross Acreage 71.36

Less: Fault Shear Zone Setback -7.76

Less: Secondary FS Zone Setback -3.05

Less: Slope Areas of 20% outside FS

zone setback areas -14.07

Constrained Areas -24.88

Net Developable Acreage 46.48

The constrained areas determination is based on studies by BKF Engineers and dated 2021.

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The Chanate Campus consisting of Parcels A, B, C, D, E, F are located on the northern side of Chanate Road while Parcels G, H, I, K, L, M are located on the southern side of Chanate Road. The table below outlines the constraints and net developable area. Most of the constraints are related to the fault zones that run through the center of the improved portions of the property, where the existing improvements are located. The unimproved areas representing Parcels G, H and I are less constrained due since they are not encumbered by fault zones and are more level.

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Chanate Campus Prior

Site Plan County's BKF's

Tract/APN Map Reference Acres Acres

ONE

180-090-002 B 8.53

173-130-038 C 2.79

11.32 11.32

TWO

180-090-010 L 2.96 2.96

THREE

180-090-009 K 13.32 13.32

FOUR

180-090-001 A 3.00 3.01

FIVE

180-090-003 D 5.07

180-090-004 E 1.32

180-090-005 F 0.37

180-090-006 G 28.10

180-100-001 H 1.14

180-100-029 I 1.04

37.04 36.77

SIX

180-090-008 M 3.98 3.98

Total Gross Acres 71.62 71.36

Less: Constrained Areas -24.88

Net Developable Area 46.48

Excluded Areas

The Chanate Campus includes excluded areas that are outside the 71.36-gross

acreage area. These areas include land owned by the Sonoma County Water Agency

and the Sonoma County Open Space District. The excluded areas include Map

Reference J, N, O & P and contain approximately 43.36-gross acres.

Easements and Encroachments

A Preliminary Title Reports prepared by Fidelity National Title Company and dated

December 18, 2018 was reviewed. The report noted multiple easements for public

utilities, access and maintenance of County facilities. The exceptions do not appear to

be significant and are not expected to impact the development of the property.

Topography

The topography varies for each Parcel. The parcels on the northern side of Chanate Road are generally more level due to their previous use as a hospital and related office building with parking. However, Parcels D, E and F are steeper and may have signficant development constraints.

The parcels on the south side of Chanate Road also vary in terms of steepness. Parcels K, L and M vary from level to rolling to steep. Again, future development may be constrained along portions of the site.

Parcels G, H and I vary from level to rolling to steep. In addition, Piner Creek extends along the eastern portion of the site and drains into the Piner Creek Reservoir, which is located on the Open Space area. Setbacks from the creek will most likely be required. However, clustered development within the level and rolling terrain area appears feasible.

Special Hazards

Flood: The subject is located within an area designated Zone X, outside the 100-year flood plain area, based on Community Panel No. 06097C 0727E, dated December 2, 2008.

Soils: The appraiser was not provided a soils report on the subject site. I did not note any hazardous materials or substances on the subject site. The appraiser is not qualified to detect the presence of hazardous materials that may affect the value of the property. The client is urged to retain an expert in this field, if desired.

Earthquake: The property is within a Fault-Rupture Hazard Zone. Portions of Rodgers Creek Fault runs north-south through the property. The BKF Engineers Constraints Map on the page below provides the location of the fault lines. The fault line zone area has been taken into account to arrive at the net developable area of the entire property.

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While no habitable development can be located within the fault zone area, they can support parking, parks and other amenities.

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Zoning and Use

The property is currently zoned for public use with a small area zoned for low density residential uses. The General Plan designation is Public/institutional and Very Low Density Residential. The property is currently unentitled and any development would require a prospective property owner to undertake an extensive entitlement process. Redevelopment of the property would require a General Plan amendment, rezoning with the City of Santa Rosa, a Tentative Map approval, Design Review approval and Hillside Development Permit. The City may also require an EIR. City planning staff may also require extensive studies that address land use issues related to a tree inventory, habitat study, soils study, traffic study, sound study and more. The city has indicated that they prefer to have the property developed with a mix of low and medium density residential development. Any proposed development would also be required to provide some level of below market or rent restricted residential units. The entitlement process could take from two to five years to complete, based on complexity and neighborhood concerns. The County has already held public hearings on the proposed redevelopment of the property and neighborhood interest has been intense.

Real Estate Taxes

Since passage of Proposition 13, or the Jarvis Gann Initiative in 1978, real property taxes are limited to 1% of Market Value, as of a specified base year. The base year valuation is the Assessor's 1975 Market Value estimate, unless there is a transfer of ownership (sale), new construction, or the property is leased on a long-term basis. Whenever this occurs, the property is reassessed at full Market Value. If a reassessment is not triggered, the assessed value is trended upward at 2% annually.

Furthermore, Proposition 13 limits annual taxes to 1%, plus an amortized amount for voter approved bonded indebtedness, of the assessed value. The property is held by the County and there are no assessed values.

Conclusion

The Chanate Campus property is a unique, integrated property located within an established residential area in northeast Santa Rosa. The property has significant development constraints due to its location within a Fault Hazard zone and sloped areas with a slope of more than 20%. However, the BKJ Engineers Constraints Map supported by detailed engineering studies has determined the location of the fault zones, allowing for clarity in the net developable area of the property. Based on these studies, the net developable area contains 46.48-acres and is located within several Parcels on both side of Chanate Road.

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HIGHEST AND BEST USE

Definition

According to the Third Edition of The Dictionary of Real Estate Appraisal, a publication of the Appraisal Institute the Highest and Best Use is defined as follows.

That reasonable and probable use that supports the highest present value, as defined, as of the effective date of the appraisal. Alternatively, that use, from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in the highest land value.

The definition differs somewhat for improved property and vacant property; however, four criteria must in effect be met for both. The highest and best use must (1) be physically possible, (2) be legally permitted, (3) be feasible, and (4) produce the highest return or value.

Implied in this definition is recognition of the contribution of a specific use of the community environment or to the community's development goals, in addition to wealth maximization of individual property owners.

The highest and best use is that use which is most likely to produce the greatest return over a given period of time. Only those uses which are natural, probable, and legally permissible may be properly considered tenable. Thus, it may be defined as the available use and program of future utilization which produces the highest present value to the land.

Even when improvements are existing upon a site, it is possible that the current use does not represent the highest and best use. An estimate of highest and best use requires two separate analyses: the highest and best use of the property as improved, and the highest and best use of the property as if vacant. The purpose of the separate analyses is to ensure consistency of uses between the subject land and land sales used to value the subject site, as well as to determine if the existing improvements have contributory value which warrants their continuance.

Since the subject property is assumed to be vacant and ready for development, it is necessary to consider only the highest and best use of the site as if vacant:

Highest and Best Use As If Vacant

Physically Possible

BKJ Engineers Constraints Map supported by detailed engineering studies has determined the location of the fault zones and more than 20% sloped areas, allowing for

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clarity in the net developable area of the property. Based on these studies, the developable area contains 46.48-net acres and is located within several Parcels on both side of Chanate Road. Based on th studies, the physical characteristics of the site appear to be adequate in terms of shape, size, topography, available utilities, area traffic and circulation patterns, transportation facilities and consumer services.

Legally Permissible

The highest and best use of vacant land is typically that use (or uses) permitted by the existing zoning ordinance. One exception is when a zone change or use variance can likely be obtained. The subject property is zoned for public and institutional use given its history. A small portion of the property is zoned for low density residential uses. However, upon redevelopment, the property will be under the zoning jurisdiction of the City of Santa Rosa. The property is currently unentitled and any development would require a prospective property owner to undertake an extensive entitlement process. Redevelopment of the property would require a General Plan amendment, rezoning with the City of Santa Rosa, a Tentative Map approval, Design Review approval and Hillside Development Permit. The city may also require an EIR. The entitlement process could take from two to five years to complete, based on complexity and neighborhood concerns.

Economically Feasible

Overall demand for residential development is very strong due to the historical slow pace in development in the County coupled with the 2017 Fires. Demand for the residential units is expected to continue to be very strong.

Maximally Productive - Land As If Vacant

The Chanate Campus property is current unentitled. Residential development would be the maximally productive use given the physical constraints of the property, the City’s desire for residential development and the desirable locational aspects of the property.

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VALUATION METHODOLOGY

There are three major approaches to the valuation of real property--the Cost Approach, the Sales Comparison Approach, and the Income Approach. The type and age of a property and the quantity and quality of data that can be obtained affect the utility of each approach for any given appraisal task.

The Cost Approach to Value utilizes a method in which the value of the property is derived by estimating the reproduction or replacement costs new of the improvements, deducting therefrom depreciation due to all causes attributable to the improvements, and then adding the Market Value of the land. This method is based on the theory of substitution which implies that a knowledgeable buyer will pay no more for the real property than the cost of producing a comparable property of similar utility.

The Sales Comparison Approach is a method of comparing recent sales of similar properties to the subject property. This approach is based on the principle that the prudent investor would pay no more for a property than the cost of acquiring a satisfactory alternative property that possesses physical, economic and financial comparability. The value of a particular property tends to coincide to the value indicated by the actions of informed buyers and sellers in the marketplace for similar properties.

The Income Approach to Value is based upon the economic principle that the value of an income producing property is the present worth of anticipated future benefits; which are comprised of the annual income stream (cash flow or net income) and the reversion benefits (resale value). The net operating income is estimated by deducting from the gross annual income and appropriate allowance for vacancy and operating expenses. The net income can be converted into a present value estimate using a capitalization process. There are various methods of capitalization that are based upon inherent assumptions concerning the pattern of the income stream, as well as the quantity, quality and durability of the income stream.

In the case of the subject valuation analysis, only the Sales Comparison Approach was utilized since this is the most appropriate method for valuing unentitled residential land.

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SALES COMPARISON APPROACH

Methodology

The Sales Comparison Approach is a method of comparing recent sales of similar properties to the subject property. This approach is based on the principle that the prudent investor would pay no more for a property than the cost of acquiring a satisfactory alternative property that possesses physical, economic and financial comparability. The value of a particular property tends to coincide to the value indicated by the actions of informed buyers and sellers in the marketplace for similar properties.

A number of sales were investigated in order to estimate a value of the subject property. Those sales considered to provide the most meaningful comparison are listed on the following table and a discussion and analysis of these sales follows with the conclusion of value estimate for the subject property. In comparing the sales of subject property, adjustments are typically made for a date of sale, physical and economic characteristics, and terms of sale or financing.

Application

The property represents an unentitled parcel containing 46.48-net developable acres that has significant development potential. Accordingly, I have researched sales of other similar properties in the Sonoma County area. The following table provides three sales of unentitled residential land and two sales of entitled residential land. The five sales provide a bracket of value for the subject property given their similar development potential. The discussion of the comparable sales are followed by data sheets for each sale.

Discussion of Market Data for Unentitled Residential Land Sales

Property Sale No. 1 is the March, 2017 sale of a 32.18-acre vacant parcel located within the northern gateway area of Healdsburg, Sonoma County. The property includes access to all city services. The project abuts Highway 101 to the west and Healdsburg Avenue to the east and includes significant undevelopable areas. The property has a history as an operating lumber mill with industrial zoning and has been environmentally clean and leveled before the sale. The property sold for $10,250,000, or $318,521 per gross acre as unentitled. The City required the developer to undertake an EIR of the proposed development along with an Area Plan. After several years of studies, community meetings and several lawsuits, the property is proposed to be developed with a senior housing project, smaller motel and some retail development. The proposed plans for the property changed significant over the past three years. Based on environmental studies, the net developable area was determined to be 18.0 acres and excludes creek areas and the hillsides. The adjusted sales price based on the net developable area was $569,444 per acre. The proposed developed has not been formally approved as of June, 2021 but is considered to be favored by the City and community.

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Property Sale No. 2 is a proposed mixed-use project known as the Mill District Project located at 146 & 164 Healdsburg Avenue in central Healdsburg, Sonoma County. The subject property was acquired by Replay Destinations for $16,525,000 in April, 2016 as unentitled land, or for $1,721,354 per gross acre. The property contains 9.60 gross and net acres and operated as a lumber yard with lumber processing facilities for over twenty years. Over the past three years, the new owners have undertaken the regulatory process to obtain a tentative subdivision map, conditional use permit and a development agreement from the City of Healdsburg.

The project was approved in 2020 and became fully entitled, except for Design Review approval, and has been approved with a Tentative Subdivision Map, Conditional Use Permit, Historical Demolition Permit and Development Agreement to subdivide the approximately 9.60-acre property into seven lots to allow for development of up to 208 multi-family residential units, a 53-room hotel and 15,000 square feet of commercial space within separate buildings. The Project is located within the geographic area designated as the Central Healdsburg Avenue Plan (CHAP). The City and the developers had entered into a Development Agreement that is intended to eliminate uncertainty in the comprehensive development of the property and provide a basis for the development, construction and completion of the project in an orderly process.

The residential portion of the Project will consist of 138 multi-family apartments and condominium units, 30 deed-restricted multi-family units for Middle Income residents that will be both rental and “for sale” units and 40 deed-restricted multi-family units for Lower Income Households. The project is subject to the city’s GMO allocation and has reservations for development of all the market rate 138 residential units and a designated number of middle-income “for sale” and rental units through 2030.

Property Sale No. 3 is the December, 2017 sale of a 29.9-acre proposed residential, hotel and commercial development known as Lalima Rohnert Station located at 6400 State Farm Drive in central Rohnert Park, Sonoma County. The project was partially entitled with the City of Rohnert Park undertaking a General Plan amendment and full EIR before the property was acquired. The initials entitlements facilitated the property sale and potential development. The project will include a 460-unit residential portion, 156-room hotel, 140,000 sf of retail space and 130,000 sf of office space. The City required approximately 9 acres of the property to be dedicated as open space/park. The property sold for $13,500,000, or $451,807 per gross acre and $645,933 per net developable area. The proposed development is at a density of 15.4 units per acre. The project is located in central Rohnert Park, adjacent to the SMART line and will provide downtown Rohnert Park with a robust city center.

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Discussion of Market Data for Entitled Residential Land Sales

Property Sale No. 4 is the December, 2020 sale of a 19.0-acre property proposed as a single family housing project located within the Vast Oak North development area in the Northwest quadrant of Rohnert Park, Sonoma County. The full entitled project will include 206 housing units consisting of all detached homes on individual lots. The property sold for $20,800,000, or $1,094,737 per acre and $100,971 per residential unit. The development is at a density of 10.8 units per acre.

Property Sale No. 5 is the January, 2019 sale of a 40.2 gross acre property proposed as a single family housing project known as Round Barn Village and located in the Fountaingrove area in central Santa Rosa, Sonoma County. The fully entitled project will include a 237-unit town home project consisting of all detached homes with two car garages. The project will include extensive open space areas and a community pool and rec center. The property sold for $20,800,000, or $1,094,737 per gross acre, $694,140 per net acre and $53,481 per residential unit. The development is at a density of 11.3 units per acre.

Analysis of Comparable Sales

The three unentitled land sales range in sales price per gross acre from $318,521 to $1,721,454 and on a net developable acre from $569,444 to $1,721,354. The two entitled land sales range in sales price per gross acre from $315,455 to $1,094,737 and on a net developable acre from $694,140 to $1,094,737. A summary of the sales is provided on the table below. The sales are analyzed in more detail below.

Net Acres $/Net Acres Condition

Subject 46.48 Unentitled

Sale No. 1 18 $569,444 Unentitled

Sale No. 2 9.6 $1,721,354 Unentitled

Sale No. 3 20.9 $646,933 Unentitled

Sale No. 4 19 $1,094,737 Entitled

Sale No. 5 18.3 $694,140 Entitled

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Subject Comp 1 Comp 2 Comp 3 Comp 4 Comp 5

Address Laulima

Chanate Campus North Village Mill District Rohnert Station Vast Oak North Round Barn Village

Healdsburg Avenue 146-164 Healdsburg 6400 State Farm Drive Keiser Avenue Fountaingorve

APN Santa Rosa Healdsburg Healdsburg Rohnert Park Rohnert Park Santa Rosa

Sale Date 3/20/2017 4/6/2016 12/1/2017 12/18/2020 1/22/2019

Sale Price $10,250,000 $16,525,000 $13,500,000 $20,800,000 $12,675,000

Site Area (Gross Acres) 71.36 32.18 9.60 29.9 19.0 40.2

Net Acres 46.48 18.0 9.6 20.9 19.0 18.3

$/ Gross Acres $318,521 $1,721,354 $451,807 $1,094,737 $315,455

$/Net Usable Acres $569,444 $1,721,354 $645,933 $1,094,737 $694,140

$/Unit $100,971 $53,481

Density 10.8 11.3

Zoning Public/Institutional Requires EIR Mixed Use C-O PD PD

Some SFR and Area Plan

Entitlements Unentitled Unentitled Unentitled Partially entitled Entitled Entitled

Development Potential Proposed senior Proposed 208 units with Proposed 460 unit Proposed 206 Proposed 237 unit

housing with hotel 53 key hotel and commercial apartment complex SFH's townhomes

and retail uses buildings with retail/office

and hotel

COMPARABLE URBAN RESIDENTIAL LAND SALES

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Subject Comp 1 Comp 2 Comp 3 Comps 4 Comp 5

$ Price $10,250,000 $16,525,000 $13,500,000 $20,800,000 $12,675,000

Property Rights Fee Simple Fee simple Fee simple Fee Simple Fee Simple Fee Simple

Financing Conventional Conventional Conventional Conventional Conventional Conventional

Conditions of Sale Market Market Market Market Market Market

Market Conditions 3/20/2017 4/6/2016 12/1/2017 12/18/2020 1/22/2019

Sales Price/Usable Acre $569,444 $1,721,354 $645,933 $1,094,737 $694,140

Entitlements Unentitled Unentitled Partially entitled Entitled Entitled

-10% -20% -20%

Density (Residential) Similar Similar Simillar Similar Similar

Property Size Smaller Smaller Smaller Smaller Smaller

-10% -30% -10% -10% -10%

Project Design/Location Similar Superior Inferior Inferior Similar

-20% 20% 10%

Total Adjustments -10.0% -50.0% 0.0% -20.0% -30.0%

Adjusted Value/Unit $512,500 $860,677 $645,933 $875,789 $485,898

ADJUSTMENT GRID

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Analysis of Market Data

Property Rights Conveyed

All of the sales represent the fee simple interest. No adjustments have been made for property rights conveyed since they all represent the fee simple interest.

Financing Terms

Adjustments for financing terms are warranted when a property is purchased subject to non-market financing arrangements. Non-market financing can include seller-carried notes or assumable loans with interest rates below (or above) terms currently achievable. All sales utilized involved the transfer of all-cash, or included notes reported to be at market rates at the time of sale. No adjustments were required for financing.

Condition of Sale

Each of the property transfers included herein were "arms-length" transactions where the sellers and buyers were not under undue duress or atypical motivations. No adjustments were applied for condition of sale.

Date of Sale

The sales range from 2016 to 2020 and reflect current market conditions. No adjustment for date of sale is warranted.

Entitlements

In general, sales of entitled properties is higher on a per acre basis than sales of unentitled properties. However, the three comparable sales that sold as unentitled did not sell significantly lower than the sales of the two entitled properties. However, based on industry standards, I have adjusted the entitled sales downward by 10% to 20%.

Density

The unentitled sales did not include project approvals and were acquired without direction on the number of units that could be developed. Thus, applying a density to these sales is not possible. The entitled sales sold at a density of development of 10.8 and 11.3 units per acre and have not been adjusted.

Property Size

The subject is approximately twice as large in net developable area as most of the the property sales. The Mill District project in Healdsburg is the smallest property and also sold at the highest price on a per acre basis. This sale has been adjusted downward by

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Concluded Unit Value for the Chanate Campus

30% for size while the other comparable sales have been adjusted downward by 10% for size for their smaller parcel size.

Project Design

Project design refers to the overall appeal of the proposed development and includes its locational attributes, unit design and layout. The subject is unentitled and there are no project designs from which to compare to the five comparable sales. However, it is expected that any proposed designs would include low and medium density residential development. Thus, I have compared each of the sales in terms of its proposed development to a typical low and medium density residential project that would represent the subject project. Sale No. 2 is considered superior in design and locational attributes while Sale Nos. 3 and 4 are considered inferior in potential design and have been adjusted downward by 20% and 10%, respectively. Sale No. 1 is considered overall most similar to the subject.

The adjusted unit values range from $485,898 per net acre to $875,789 per net acre. Sale Nos. 1 and 3 have the least net adjustments. Sale No. 1 is considered the most comparable property to the subject due to it residential locational attributes, large parcel size and unentitled status at the time of sale. Sale Nos. 2 and Sale No. 3 are proposed as more urban development design due to their mid-rise design and city center location and are considered less similar to the subject. These sales have been relied on less that the two other sales. Of particular note is Sale No. 5, which sold as entitled and also reflects demand for residential land in NE Santa Rosa. Based on Sale No. 1 with support from Sale No. 5, the value of the subject is estimated at $500,000 per acre.

Concluded Value of Property

The value of the subject based on its net developable area is as follows:

$500,000/acre x 46.48 acres = $23,240,00

Rounded = $23,240,000

TWENTY-THREE MILLION TWO HUNDRED FORTY THOUSAND DOLLARS ($23,240,000)

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VALUE OF FEES/CREDITS RELATED TO SEWER AND WATER USES

Fees and credits for sewer and water use can be substantial if the property has been previous developed. However, since the property is being valued as vacant, these fees and credits related to its previous use are for informational purposes only.

The historical sewer and water capacity credits are included in the addendum of the appraisal. The current fee/credit value after July 30, 2021 are provided below. The potential fees/credits are as follows:

Fee/Credit per

1000 gallons Gallon Usage Factor Fee/Credit

Domestic Water 456 1,576,000 1576 $718,656

Irrigation Water 456 0 0 $0

Wastewater 1805 1,560,000 1560 $2,815,800

Total Fee/Credit $3,534,456

WASTEWATER AND WATER CREDITS (as of 7/2021)

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PROPERTY SALE NO. 1

Address: 16701 Healdsburg Avenue Healdsburg Sonoma County, California

Assessor's Parcel No.: 091-060-009, 019, 022, 025

Property Rights: Fee Simple

Seller: Quaker Hill Project Associates

Buyer: Comstock Healdsburg LLC

Document Number: Grant Deed Doc No. 21315

Date of Sale: March 20, 2017

Sales Price: $10,250,000

Terms of Sale: All cash

Condition of Sale: Market conditions

$/Net Acre: $569,444/net usable acre

Acres: 32.48 gross acres with 18.0 usable areas.

Zoning: North Entry Study Area within the Healdsburg city limits. The North Entry Study Area Plan is to be an amendment to the General Plan. The area is considered a gateway at the northern end of the city limits and any development of the property will require an EIR and consistency with the Area Plan. The property was zoned Industrial at the time of purchase and requires a GP amendment and conformity to the Area Plan. Current plans are for a senior housing complex, hotel and retail uses that are proposed. Project has been in the entitlement process for four years without any conditions for approval.

H&B Use: Low density residential and mixed uses.

Topography: Usable area is flat.

Improvements: None.

Utilities: City services and PG&E to property

Access: Healdsburg Avenue frontage bisected by rail line

Confirmation: Comstock, Buyer (310-546-5781)

PLAT MAP

VIEW

PROPERTY SALE NO. 2

Address:

Assessor's Parcel No.:

Seller:

Buyer:

Document Number:

Date of Sale:

Sales Price:

Terms of Sale:

$/Acre:

Acres:

Zoning:

H&B Use:

Topography:

Improvements:

Utilities:

Access:

Comments:

Confirmation:

Mill District 146 Healdsburg Avenue Healdsburg Sonoma County, California

002-261-023, 024, 303-012, 013

Nu Forest Products

Replay Healdsburg LLC

Grant Deed No. 30248

April 6, 2016

$16,525,000

Cash to seller

$1,721,354/gross and net acre

9.60 gross and net acres

Industrial lumber yard before rezoning. The property is within the Central Healdsburg Avenue Plan and was approved with a TM, conditional use permit and Development Agreement for the development of 208-mulit-family units, 53-room hotel and retail space. The entitlements were completed in 2019, or three years after the purchase date. No conditions for approval at purchase.

Medium density residential use.

Level

The buyer gave no value to any improvements.

City services and PG&E to property

City road access

The development is subject to the city’s GMO allocation that limits the number of units developed each year. Also, the developer was required to upgrade the city services along Healdsburg Avenue at a cost of $1.0 million.

Eric Chan Replay Healdsburg

PROPOSED AND AS-IS LAYOUT

PROPERTY SALE NO. 3

Address:

Assessor's Parcel No.:

Seller:

Buyer:

Document Number:

Date of Sale:

Sales Price:

Terms of Sale:

$/Net Acre:

Acres:

Zoning:

H&B Use:

Topography:

Improvements:

Utilities:

Access:

Comments:

Confirmation:

6400 State Farm Drive Rohnert Park Sonoma County, California

143-051-072

North Bay Community LLC

Laulima Rohnert Station LLC

Grant Deed No. 92256

December 1, 2017

$13,500,000

Cash to seller

$646,552/net acre

29.88 gross acres and 20.88 net acres

PD

Mixed use

Level

The buyer gave no value to the modest improvements.

City services and PG&E to parcel

Public road access

Development was partially entitled by city with the revision to General Plan and a full EIR before the project was undertaken at city’s expense. Project received Design Review approval in April, 2019. Project will include 270K of office/retail space and 460 residential units and 156 key hotel.

NDCdata

PLAT MAP

PROJECT MAP

PROPERTY SALE NO. 4

Address:

Assessor's Parcel No.:

Seller:

Buyer:

Document Number:

Date of Sale:

Sales Price:

Terms of Sale:

$/Net Acre:

Net Acres:

Zoning:

H&B Use:

Topography:

Utilities:

Improvements:

Access:

Comments:

Confirmation:

Vast Oak North Keiser Road Rohnert Park Sonoma County, California

159-550-032, 029

Brookfield Residential

Richmond American Homes

Grant Deed No. 121639

December 18, 2020

$20,800,000

Cash to seller

$1,094,736/net acre

19.0 net acres

TM for Phase 3A and 3B of Vast Oak North consisting of 206 proposed detached single-family homes.

Medium density residential

Level

City services and PG&E services

None

City road access

TM development representing additional phases of detached single-family housing. Approved in 2020.

NDC data, Deed

DEVELOPMENT LAYOUT

AERIAL MAP

PROPERTY SALE NO. 5

Address:

Assessor's Parcel No.:

Seller:

Buyer:

Document Number:

Date of Sale:

Sales Price:

Terms of Sale:

$/Net Acre:

Gross and Net Acres:

Zoning:

H&B Use:

Topography:

Utilities:

Improvements:

Access:

Comments:

Confirmation:

Round Barn Blvd Santa Rosa Sonoma County, California

173-020-030, 31, 32,33,34,35

Medtronic Vascular

City Ventures Homebuilding LLC

Grant deed Nos. 7044

January 28, 2019

$12,675,000

Cash to seller

$694,140/net acre

40.18 gross acres and 18.26 net acres

Medium density residential approved for 237 attached townhomes

Medium density residential use

Level

City services and PG&E services

None

City road frontage

Sold with approvals for 237 attached townhomes with design review. Project includes dedicated open space. Project will have an HOA to cover community services and landscaping.

NDCdata and Deed

DESIGN LAYOUT

AERIAL MAP

DANA W. BURWELL, MAI, ASA P0 Box 115

Healdsburg, California 95448 (707) 433-7490

(707) 395-4105 Fax e-mail:danaburwell@aol.com

I am a member of the Appraisal Institute with a MAI designation and a member of the American Society of Appraisers with an ASA designation. In addition, I am a member of the IRWA with a R/W – AC appraisal certificate. I am licensed by the State of California with a general appraisal certification (AG 003696).

EXPERIENCE Over 25-years’ experience valuing a wide range of commercial and Ag related real estate in the greater Northern California area.

APPRAISAL OF FEE, LEASED FEE, AND EASEMENT INTERESTS

Review work for major banks and governmental entities, Valuation of office, industrial, retail and subdivision properties, Special purposes properties such as FBO, fitness centers, day care facilities, SNF, RCF, Valuation of wineries, vineyards and Ag properties, Appraisal of easements, partial takings and damages to the remainder, Valuation of Conservation and Forever Wild Easements, Experience in Federal Government (Yellow Book) appraisals for BLM and other agencies

LITIGATION SUPPORT

Have qualified as an expert witness performing testimony in court. In addition, have undergone numerous depositions and provided private consultation services to attorneys and clients.

EDUCATION

BA. San Francisco State University, Business with concentration in Real Estate

M.B.A. San Francisco State University, Corporate Finance

APPRAISAL ORGANIZATIONS

ASA: Member of Board of Directors of the Northern California Chapter of the American Society of Appraisers 2000-2003 and 2019-2021

AI: Board of Directors of the NorCal Chapter of the Appraisal Institute 2000-2003

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