Appraisal RVpark 2006

APPRAISAL REPORT
Of
AN EXISTING R.V. PARK WITH COMMERCIAL RAW LAND
Located At
33000 CYRIL PLACE

KETTLEMAN CITY, CA 93239
(FILE NO. C261221CL)
Prepared Exclusively For:
ARC FUNDING
500 3RD ST, SUITE 405
SAN FRANCISCO, CA 94107
Prepared By:
PAUL CHUA
RANDALL CHASE
CHUA & ASSOCIATES
1016 E BROADWAY #208
GLENDALE, CA 91205
Date Of Valuation:
OCTOBER 22, 2006

November 14, 2006
Arc Funding
500 3rd St., Suite 405
San Francisco, CA 94107
Reference: Appraisal of Real Property located at:

33000 Cyril Place
Kettleman City, CA 93239
Dear Sir/Madam:
In response to your authorization, we have conducted the required investigation and gathered the
necessary data, and have made certain analyses that have enabled us to form an opinion of the
market value for the above-referenced property. The appraisal states our opinion of the
property's Market Value subject to various Assumptions and Limiting Conditions set forth in the
accompanying report. The physical inspection and analysis that forms the basis of the report has
been conducted by Paul Chua & Randall Chase.
The subject has one large parcel of 11.67 acres which is used as a R.V. Park and vacant
commercial site. The gross site area consists of a total of 508,345 SF or 11.67 Acres (according
to the plat map provided by assessor’s office).
This is a Complete Appraisal. A Complete Appraisal is the result of an appraisal assignment in

which the Departure Provisions have not been invoked. There are three types of reports: Self-
Contained, Summary, and Restricted. This is a Self-Contained Appraisal Report. A Self-
Contained Report is a written report prepared under Standard Rule 2-2 (a) of a Complete or
Limited Appraisal performed under Standard 1. (USPAP, 1994 edition, Definition section
effective 7/1/94). This appraisal report contains to the fullest extent possible and practical, an
explanation of the data, reasoning, and analyses that were used to develop the opinion of value.
The following report complies with the standards and regulations outlined in Title XI of the
Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). In
addition, the report conforms to the Office of the Comptroller of the Currency (OCC) appraisal
standards which includes compliance with the Uniform Standards of Professional Practice
(USPAP) of the Appraisal Institute and the American Society of Appraisers as promulgated by
the Appraisal Standards Board of the Appraisal Foundation; compliance includes the ethics and
competency provisions of USPAP, excluding the departure provision.
Based on an inspection of the property (as vacant acres), and as a result of the investigation and
analyses undertaken, we have formed the opinion that as of October 22, 2006, and subject to the
premises, assumptions, and limiting conditions set forth in this report, the property has a market
value in Fee Simple Interest amounting to:
Estimated Market Value of the Fee Simple Interest

(THREE MILLION DOLLARS)
$3,000,000
The narrative report which follows contains the analysis of the property and the market data
which led to the valuation conclusions. If clarification of this report is required, or if we can be
of further service, please contact us.
Respectfully submitted,
Paul Chua
State Certified General Appraiser
AG003489
Expiration: 12/27/2006
Randall Chase
State Certified General Appraiser
AG004418
Expiration: 08/21/2008
TABLE OF CONTENTS
Transmittal Letter
Table of Contents
SUBJECT PHOTOGRAPHS ......................................................................................................3
SUMMARY OF SALIENT FACTS............................................................................................7
CERTIFICATION ......................................................................................................................8
INTRODUCTION
Purpose Of Appraisal.......................................................................................................9
Date of Valuation ............................................................................................................9
Property Rights Appraised ...............................................................................................9
Scope Of Appraisal..........................................................................................................9
Marketing Period ...........................................................................................................10
Ownership History.........................................................................................................10
MARKET VALUE DEFINITION ............................................................................................11
PREMISES, ASSUMPTIONS AND LIMITING CONDITIONS ..............................................12
APPRAISER COMPETENCY..................................................................................................15
REGIONAL DATA ..................................................................................................................17

Kings County ................................................................................................................18
KETTLEMAN CITY PROFILE ...............................................................................................30
ASSESSORS DATA / LEGAL DESCRIPTION .......................................................................36
SITE DATA..............................................................................................................................42
ZONING...................................................................................................................................45
HIGHEST AND BEST USE .....................................................................................................49
VALUATION...........................................................................................................................53
LAND SALES COMPARISON APPROACH ..........................................................................54
COMPARABLE LAND SALES MAP AND DESCRIPTIONS ................................................55
COMMENTS ON LAND SALES COMPARABLES ...............................................................60

LAND VALUE ANALYSIS.....................................................................................................61
LAND SALES ADJUSTMENT GRID......................................................................................62
LAND VALUE CONCLUSION ...............................................................................................66
FINAL RECONCILIATION………………………………………………...…………………..68
ADDENDUM……………………………………………………………………………………69
2
SUBJECT PHOTOGRAPHS
SUBJECT PROPERTY
3
STREET SCENES
4
5
6
SUMMARY OF SALIENT FACTS
Thomas Guide Map: KC 1950-G/5
Property Location: 33000 Cyril Place, Kettleman City, CA 93239
Type of Property: Commercial Acres
Current Use: R.V. Park
Owner: South Fresno Housing LLC / Gonzalez, Jamie M & Terri
Census Tract: 0016.01
Flood Map Zone: 0600860275B Dated 08/04/1988
Zone “X” / Minimal Flood Area, Flood Insurance is not required.
Interest Appraised: Fee Simple Interest
Date of Appraisal: October 22, 2006
Date of Report: November 14, 2006
PROPERTY DESCRIPTION
SITE
APN: 042-150-064-000 Tract: See Title Report
Area: 508,345 SF / 11.67 Acres Lot(s): See Title Report
Zoning: CH Shape: Irregular
IMPROVEMENTS
Construction: N/A % Occupied: N/A
Year Built: N/A Occupied Space: N/A
Stories: N/A % Vacant: N/A

Area (GBA): N/A Rentable: N/A
Legal Conforming: N/A Effective Age: N/A
VALUE INDICATIONS MARKET VALUE
COST APPROACH: N/A
MARKET APPROACH: (LAND) $3,000,000
INCOME APPROACH: N/A
FINAL MARKET VALUE: $3,000,000
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CERTIFICATION
The undersigned hereby certify that, except as otherwise noted in this appraisal report:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, unbiased professional
analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report,
and I have no personal interest or bias with respect to the parties involved.
4. My compensation is not contingent upon the reporting of a predetermined value or

direction in value that favors the cause of the client, the amount of the value estimate, the
attainment of a stipulated result, or the occurrence of a subsequent event.
5. My analyses, opinions, and conclusions were developed, and this report has been
prepared in conformity with the Uniform Standards of Professional Appraisal Practice.
6. Paul Chua has made a personal inspection of the property that is the subject of this report.
7. G Randall Chase, Certified General Appraiser AG004418 has provided significant

professional assistance to the person signing this report.
8. This appraisal assignment was not based on a requested minimum valuation, a specific
valuation, or the approval of a loan.
9. Appraiser Paul Chua has conducted the initial analysis which ultimately led to the subject
property's valuation.
October 22, 2006
Paul Chua Randall Chase

State Certified General Appraiser State Certified General Appraiser
CA AG003489 CA AG004418
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INTRODUCTION
Purpose of Appraisal
The purpose of this report is to set forth the investigations and analysis leading to our opinion of
the market value of the Fee Simple Interest of the subject property, the function of which is to
assist our client in establishing the market value of the subject property for loan purposes.
Specific Assumption
The valuations of goodwill, machinery, inventory, trade fixtures, or personal property are not
part of this appraisal valuation.
Effective Date of Valuation
The analysis, final value, opinions and conclusions apply only to the date of value. The subject
property is appraised as of October 22, 2006.
Date of Report
For this appraisal, the date of report is the date in which the report is completed and signed by
the appraisers, November 14, 2006
Property Rights Appraised
The property rights being appraised are Fee Simple Interest. Following is the definition of Fee
Simple Interest:
“An absolute fee, a fee without limitations to any particular class of heirs or restrictions, but
subject to the limitations of eminent domain, escheat, police power and taxation. An inheritance
estate.” The Dictionary of Real Estate Appraisal, 1984.
Scope of Appraisal
The scope of the appraisal requires compliance with the Uniform Standards of Professional
Appraisal Practice promulgated by the Appraisal Standards Board of the Appraisal Foundation
and the Guide Notes to the Standards of Professional Appraisal Practice adapted by the Appraisal
Institute. The standards contain binding requirements and specific guidelines that deal with the
procedures to be followed in developing an appraisal, analysis, or opinion. These uniform
standards set the requirements to communicate the appraiser's analyses, opinions, and
conclusions in a manner that will be meaningful and not misleading in the marketplace. A
narrative appraisal report on the subject property has been prepared.
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The subject data such as size, location, utility, access, visibility, and zoning are considered and
presented in this report. Market data, including land sales, comparable improved sales, rental
rates, and supply and demand are among the items researched, analyzed, and presented.
The data is used to consider the highest and best use of the subject property and to estimate the
market value. The appraiser lacks the knowledge and experience with respect to the detection
and measurements of hazardous substances. Therefore, this assignment does not cover the
presence or absence of such substances as discussed in the General Underlying Assumption
section. However, any visual or obviously known hazardous substances affecting the property
will be reported and an indication of their impact on value will be discussed.
The documentation necessary to arrive at the value is considered in this appraisal report. The
market data has been collected, confirmed, and analyzed. Comparable Sales were chosen for
their similar highest and best uses as outlined within the report. All sales were analyzed and
compared to the subject property based on their similarities and dissimilarities. These factors
were considered and judged in reaching the final estimate of value.
Marketing Period
Marketing Period refers to the time period during which a properties actively marketed in order
to bring about a sale. Inherent in this interpretation is the definition of market value.
Market time for commercial properties varies accordingly to property location, size, and other
factors. A search for marketing time for other similar properties within the subject neighborhood
was made. However, no conclusive information was available.
The marketing period is based on the fact that commercial property listing agreements often
allow twelve months for the sale of the property prior to expiration of the agreement.
Considering the current market conditions, the amount of vacancies in the immediate area of the
subject, the limited amount of data above, and other recent similar appraisals, we have estimated
that 6 months to 12 months would be a reasonable period for market exposure and the
consummation of a sale.
Sale History
Title to the subject property is currently held by South Fresno Housing LLC / Gonzalez, Jamie M
& Terri. The public records indicated that the subject has a single transfer within the past three
years. The 11.67 Acres Dated 01/20/06 in the amount of $695,000 document #2094. This
transfer price equated to $1.37 per square foot. The present estimate value over the past 10
month is a reflection of the current strong demand for similar ready for development commercial
properties. The subject property includes a R.V. Park with a manager residence and a common
pool for the guest. This money equates to the projected cost of lifting a water moratorium for the
property. See addendum for Contract of Sale and Escrow Provisions. Currently subject is in
escrow for $3,000,000.
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MARKET VALUE DEFINED
Market Value is defined in the Real Estate Appraisal Terminology Handbook of the American
Institute of Real Estate Appraisers, and expanded by the Federal Home Loan Mortgage
Corporation and the Federal National Mortgage Association, in Form 1004B/439, amended in
July, 1986.
The term "Market Value" as used in this report is defined as follows:
The most probable price which a property should bring in a competitive and open market under
all conditions 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 are the
consummation of a sale as of the specific date and the passing of title from seller to buyer under
conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, each acting in what they consider
their own best interest;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in U.S. dollars or in terms of financial

arrangements comparable thereto;
5. The price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated
with the sale.
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PREMISES, ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report is subject to underlying assumptions and limiting conditions qualifying the
information contained in the report as follows:
1. The valuation estimate and market of feasibility conclusion apply only to the property
specifically identified and described in the ensuing report.
2. Information and data contained within the report, although obtained from public record
and other reliable sources and where possible, carefully checked by the appraisers, is
accepted as satisfactory evidence upon which rests the final expression of property value.
3. The appraisers have made no legal survey nor have they commissioned one to be
prepared; therefore, reference to sketch, plat, diagram, or previous survey appearing in
the report is only for the purpose of the reader to visualize the property.
4. It is assumed that all information known to the client and relative to the valuation has
been accurately furnished and that there are no undisclosed leases, agreements, liens, or
other encumbrances affecting the use of the property.
5. Ownership and management are assumed to be competent and in responsible hands.
6. No responsibility beyond those reasonably assumed for matters of a legal nature is

assumed, whether existing or pending.
7. Information identified as being furnished or prepared by others is believed to be reliable,

but no responsibility for its accuracy is assumed.
8. The appraiser, by reason of this appraisal, shall not be required to give testimony as
expert witnesses in any legal hearing or before any court of law unless justly and fairly
compensated for such services.
9. By reason of the purpose of this appraisal and function of the report herein set forth, the
value reported is only applicable to the property rights appraised and the appraisal report
should not be used for any purpose.
10. The appraisers are not engineers, and any reference to physical property characteristics in
terms of quality, condition, cost, suitability, soil conditions, flood risk, obsolescence, etc.
are strictly related to their economic impact on the property. No liability is assumed for
any engineering-related issues.
11. Neither all nor any part of the contents of this Report (especially any conclusions as to
value, the identity of the appraisers, or the firm with which they are connected, or any
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reference to the Appraisal Institute) shall be reproduced for dissemination to the public
through advertising media, public relations media, sales media, or any other public means
of communications without prior written consent and written approval of the appraiser.
12. This appraisal is based on conditions of the local and national economies, purchasing
power of money, and financing rates prevailing at the effective date of valuation.
13. Possession of this report or a copy thereof does not imply right(s) of publication, nor use
for any purpose by any other than the person to whom it is addressed, without the written
consent of the authors.
14. No third parties other than our client may rely upon this appraisal for any purpose
whatsoever, including the provision of financing for the subject property. This appraisal
was prepared specifically for the clients to whom this appraisal is addressed.
15. In this appraisal assignment, the existence of any potentially hazardous materials used in
construction or maintenance of buildings, such as the presence of urea formaldehyde,
foam insulation, asbestos, and/or existence of toxic waste, which may not or may not be
present on the property, has not been considered. The valuation is subject to modification
any such potentially hazardous materials are detected by a qualified expert in these areas.
The Appraiser reserve the right to modify this valuation if so warranted.
16. The Americans with Disabilities Act ("ADA") became effective January, 1992. The
appraisers have not made a specific compliance survey and analysis of this property to
determine whether or not it is in conformity with the various detailed requirements of the
ADA. It is possible that a compliance survey of the property, together with a detailed
analysis of the requirements of the ADA, could reveal that the property is not in
compliance with one or more of the requirements of the act. If so, this fact could have a
negative effect upon the value of the property. Since the appraisers have no direct
evidence relating to this issue, possible noncompliance with the requirements of ADA in
estimating the value of the property has not been considered. The regulation typically
applies only to improved properties with general public access.
17. As agreed upon with the client prior to the preparation of this appraisal, this is a
Complete Appraisal since it does not invoke the Departure Provisions of the Uniform
Standards of Professional Appraisal Practice. As such, information pertinent to the
valuation has been considered and/or full valuation process has been applied.
18. This is s Self-Contained Appraisal Report which is intended to comply with the reporting
requirements set forth under Standard Rule 2-2 (a) of the Uniform Standards of
Professional Appraisal Practice for a Complete Appraisal Report. As such, it is as much
as possible, includes discussion of the data, reasoning, and analyses that were used in the
appraisal process to develop the appraiser's opinion of value. The appraisers are not
responsible for unauthorized use of this report.
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19. The estimated market value of the subject property is subject to the current remodeling
work in progress of being completed, with all office area finished and available for
tenancy, except for any amount which is negotiated with the tenants for finish at the
tenant’s option.
20. The comparable sales data relied upon in the appraisal are believed to be from reliable
sources. Though all the comparable were examined from the exterior, it was not possible
to inspect them all in detail. The value conclusions are subject to the accuracy of said
data.
21. All values shown in the appraisal report are projections based on our analysis as of the
date of the appraisal. These values may not be valid in other time periods or as
conditions change. Since the projected mathematical models are based on estimates and
assumptions which are inherently subject to uncertainly and variation depending upon
evolving events, we do not represent them as results that will actually be achieved.
22. The liability of Chua & Associates is limited to the client only and to the amount of the
fee actually received by Chua & Associates. There is no accountability, obligation, or
liability to any third party. If the appraisal report is disseminated to anyone other than
the client, the client shall make such party or parties aware of all limiting conditions and
assumptions affecting the appraisal assignment. Neither the appraisers, nor Chua &
Associates is in any way to be responsible for any type present in the subject property. In
the case of limited partnerships or syndication offerings, or stock offerings, in real estate,
the client agrees that in the event of a law suit brought by a lender, a partner or part
owner in any form of ownerships, a tenant or any other party, the client will hold the
appraiser and Chua & Associates completely harmless in such action with respect to any
and all awards or settlements of any type in such law suits.
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APPRAISER COMPETENCY
I. APPRAISAL STANDARDS
The undersigned appraisers understand and acknowledge that (I) this appraisal is being
completed and may be used in a federally related transaction subject to the requirements of Title
XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA'), 12
U.S.A. 3310 et seq.; (ii) regulated by the Office of the Comptroller of the Currency (OCC); (iii)
the OCC has promulgated regulations implementing FIRREA (the "OCC Regulations"); (iv) this
appraisal must comply with OCC Regulations; (v) we have read and understand the Uniform
Standards of Professional Appraisal Practice (USPAP) as they were adopted and may be
amended by incorporation into the OCC Regulations; and (vi) this appraisal was completed in
accordance with USPAP.
II. APPRAISER COMPETENCY
The undersigned appraisers hereby acknowledge that they are fully qualified and competent by
their training, knowledge and experience to perform this appraisal. If after acceptance of the
appraisal assignment and during the course of conducting the appraisal, the appraisers discover
that they are not fully competent to perform the appraisal; the appraisers must comply with the
competency provision of USPAP.
III. APPRAISER INDEPENDENCE
The undersigned appraisers understand that OCC Regulations require that all appraisals are to be
completed without influence from someone who desires a specific value or specific outcome.
The undersigned appraisers represent and certify that (I) the appraisal assignment was not based
upon a requested minimum valuation, a specific valuation, or the approval of a loan; (ii)
employment of the appraisers was not conditioned upon the appraisal producing a specific value
or a value within a given range; (iii) future employment is not contingent upon an appraisal
producing a specific value; (iv) employment, compensation and future employment are not based
upon whether a loan application is approved; (v) neither the appraisers nor any person with an
ownership interest in the company employing the appraisers nor any person with an ownership
interest in the company employing the appraisers, are related to, or has any ownership or other
financial interest in, either the builder/developer, seller, buyer, mortgage broker or real estate
broker/salesperson (or any person related to them) involved in the transaction for which this
appraisal has been requested, or with the most recent sale or refinancing of any property for
which this appraisal has been requested, or with the most recent sale or refinancing of any
property used as a comparable property in this appraisal; and (vi) the appraisers are not aware of
any facts which would disqualify them from being deemed independent appraisers for purposes
of Section 34.45 of the OCC Regulations.
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IV. APPRAISER LICENSE
In August and September of 1990, most federally regulated institutions adopted the Uniform
Standards of Professional Appraisal Practice, which mandated that appraisers become either
certified or licensed under state regulations pertaining thereto. This "competency provision" is
currently subject to the implementation of state licensing and certification.
California, along with all of the other states, has instituted mandatory licensing of real estate
appraisers pursuant to new regulations issued by the Federal Government. Effective November
1, 1992, any real estate appraisal used in connection with a federally related transaction must be
performed by a licensed appraiser. "Federally related real estate transactions" have been
interpreted to mean any real estate transaction involving federal insurance or assistance. This
includes, but is not limited to FHA, FNMA, and other assistance programs as well as real estate
loans from FDIC insured institutions.
There are three main categories of licensing/certification, each of which denotes a specific level
of competence in terms of the types of properties to be appraised and the dollar value of the
appraisal:
1. Licensed (Full or Provisional): Appraisals of non-complex one-to-four residential units

up to a transaction value of $1 million and appraisals of complex one-to-four residential
units up to a transaction value of $250,000.
2. Certified-Residential: Appraisals of 1 to 4 unit residential transactions without regard

to transaction value or complexity. Appraisals of apartment buildings of 5 or more units
are NOT authorized at this level. Non-residential property with a transaction value of
$250,000 or less.
3. CERTIFIED-GENERAL: Appraisals of all real estate transactions without regard to

transaction value or complexity.
The staff at Chua & Associates has passed the requirements and has been issued licenses or
certificates. Thus we have complied with the new regulations issued by the Federal Government.
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REGIONAL MAP
17
KINGS COUNTY PROFILE
Community Profile - 2003

Avenal Kings County, California
LOCATION: Avenal, incorporated September

18, 1979, is located 180 miles north of Los
Angeles, 200 miles south of both San Francisco
and Sacramento, and 58 miles south of Fresno.
General Info
ECONOMIC GROWTH & TRENDS
Climate Population *1990 2001 2002 01-02% Change
Transportation Kings Co. 101,469 131,300 133,100 1.4%
Industrial Sites Avenal 9,700 15,200 14,850 2.3%
Water Supply . . . . .
Taxable
Sewer Service 1990 2000 2001 00-01% Change
Sales **
Storm
Kings Co. $582,000,000 $887,936,000 $920,033,000 3.4%
Drain/Flood Ctrl
NATURAL GAS:
Name of Supplier: Pacific Gas &
Electric Company
For service and information, contact
Pacific Gas and Electric at: 1 (800)
743-5000.
ELECTRICITY:
Name of Supplier: Pacific Gas and
Electric Company.
For rates applicable to the city of
Natural Gas Avenal $11,000,000 $11,662,000 $12,022,000
Avenal, contact Pacific Gas & Electric
company office located at 159 East Elm
Street, Coalinga, California 93210.
Telephone number: (559) 935-0711.
TELEPHONE:
Name of Supplier: Pacific Bell.
For service and information applicable
to the City of Avenal contact Pacific Bell
at 1 (800) 310-2355 (residential); and
1 (800) 750-2355 (business).
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TAXES AND INSURANCE RATES:
Retail Sales Tax: City/County 1.25% Total: 7.25%
State 6% -
Typical Commercial Property Tax 1.2% annual
Rate:
Typical Industrial Property Tax 1.03% annual
Rate:
City Fire Insurance Rating: 5*
Earthquake Index: .4
MAJOR EMPLOYERS:
Company # of Employees Product
Avenal State Prison 1300 Correctional Facility
Chevron U.S.A. Inc. 25 Gas and Oil
Pacific Gas and Electric 66 Natural Gas Compressor Plant
Paramount Farms 600 Agricultural
Reef Sunset Unified School 306 Education
Avenal Rural Health Care 25 Health Services
City of Avenal 22 Government
RECREATION:
Recreational facilities include two parks, two playgrounds, one 18-hole golf
course 15 minutes away, and nearby the Sierra Nevada mountains and Pacific
Ocean beaches.
HOUSING AVAILABILITY, PRICES AND RENTALS:

Rentals for one and two bedroom apartments and duplexes range from $300
to $450 per month. Rentals for two and three bedroom houses range from
$350 to $500 per month. There are three mobile home parks and two hotels
with 70 total rooms in the community area. There is one subdivision under
construction with single family housing costs starting at $69,000.
GENERAL INFORMATION:
Avenal is a progressive, rapidly growing community, located halfway between
Los Angeles and San Francisco on Interstate 5. Avenal has a small town
atmosphere and is known as the "Oasis in the Sun." It is home to one of
California's newest prisons, which employs over 1000 persons and has boosted
the local economy. Avenal was a finalist in the 1992 All-American City Awards
Program.
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What is it like to conduct business in the Central Valley? Simply click on an industry to read
the testimonials from several prominent Central Valley businesses!
Agriculture
Call Centers
Food Processing
Healthcare
Manufacturing
Agriculture
SupHerb Farms blends the excitement of innovation with the sense of tradition. SupHerb
Farms -- a partnership between Armanino Farms of California and Darégal of France --
draws upon more than 160 years of industry experience. Armanino Farms has grown fresh
herbs in Northern California since freeze-dried processing began. Darégal has been a
grower and marketer of herbs for more than a century and pioneered and patented a
unique process for manufacturing individually quick frozen herbs.
Today, SupHerb Farms markets a variety of freeze-dried and fresh-frozen herb products
from their Central Valley location. The company is represented throughout the United
States and Canada by more than 50 brokers. Mike Brem, President of SupHerb Farms,
explained that the company was drawn to Stanislaus County in 1993 because of the many
advantages the county offers.
SupHerb Farms
“We chose to build our facility in Stanislaus County because it is an excellent agricultural
area and we’re in close proximity to our product. The area has a very friendly business
environment. We plan to stay in Stanislaus County.”
Call Centers
Market Facts, Inc. a nationally recognized research and information company, opened in
the city of Fresno in February of 2001. Headquartered in the Chicago area, it is a major
supplier of marketing research information to Fortune 500 companies in North America and
has been in business since 1946. Market Facts, the National Telephone Center operation in
Fresno conducts a variety of telephone surveys that collect nationwide opinions on various
products and services.
While their national search included many markets, Vice President of Market Facts William
Gaffin, was attracted to Fresno’s affordable labor pool, availability of affordable office space
and frequent service to Los Angeles International Airport and San Francisco International
Airport.
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Andrew Sorenson, Call Center Manager for Market Facts, Inc, is positively thrilled with the
company’s decision to locate a call center in Fresno.
Market Facts, Inc.

“We have found a skilled and able workforce whose bilingual skills have increased the
versatility of the projects that we can field. We have been welcomed to the area and have
experience a cooperative and supportive business environment.”
Food Processing
In 1964, Louis Ruiz and his son, Fred, began building the foundation for what has made
them the largest manufacturer of frozen Mexican food in the United States. From their
beginnings at a small warehouse, their enterprise has grown to a 300,000 square feet that
lies on 43 acres in the heart of the San Joaquin Valley. Their goal is simple: meet the
highest quality standards for customer satisfaction. Father and son -- along with a
dedicated workforce -- have met that challenge successfully in the Central Valley with
diligence and determination. CEO of Ruiz Food Products, Inc. Fred Ruiz explains
Ruiz Food Products, Inc.

"Workers from this area are extremely loyal and hard working. We have many team
members with 20 plus years of service and multiple generations working at Ruiz Food
Products."
Warnock Food Products is one of the best-known corn chip manufacturers, producing a
variety of chips, taco shells, tostada shells and tostada bowls out of corn and multi-grain
ingredients.
Warnock Food Products has been in Madera County since 1986. What started as an
operation with only a few employees, has grown to employ ninety-one people.
When Don Warnock, President of Warnock Food Products, was offered the chance to
manufacture PIK-NIK Shoestring Potatoes, he knew his dedicated workforce would be up to
the challenge. They proved their diligence when they disassembled the equipment from the
old plant and re-engineered it at the plant in Madera and were able to begin manufacturing
their new product in approximately eight months. Warnock greatly appreciates the work
ethic and resolve of his Madera County staff.
Warnock Food Products

“The process has been huge. Our fabrication, maintenance and engineering departments
have been great. We could not have done it without commitment from all our employees.”
Healthcare
Mercy Medical Center Merced is a member of Catholic Healthcare West (CHW), the
largest, not-for-profit healthcare system in California. With over 1,200 employees, the
facility is one of the largest employers in Merced.
21
Mercy Medical Center Merced offers comprehensive medical services for people of all
ages. Acting as a full-service health system, Mercy Medical Center Merced’s has two acute
care hospitals, cancer center, family care clinic, general medicine clinic, health education
center, home care services, kids care clinic, rehabilitation services, outpatient surgical and
diagnostic center and Mercy Urgent Care.
John Headding, Chief Administrative Officer for Mercy Medical Center Merced, values the
wealth of opportunities that Merced County offers.
Mercy Medical Center Merced

"When you compare Merced County to other communities, the quality of life is one of the
best attributes here. I've raised two children in public schools and both have been
successful. There is a genuine love for the community by the community. There are ample
recreational opportunities for families, great park systems, a safe environment, and the
schools are good and responsive to parents’ concerns.”
Manufacturing
Moore Technologies, Inc. is one of the world's leading suppliers of Semiconductor

Process Control Equipment. It designs, manufactures and markets a family of wafer
fabricating machinery as well as epitaxial wafers used by major silicon suppliers.
When considering where to relocate from the Bay Area, Moore Technologies, Inc. founder
Gary Moore knew that San Joaquin County was the best option for his business and his
employees.
Moore Technologies, Inc.

“We benefited by many…things in the San Joaquin Valley: lower housing costs, lower labor
costs, larger labor pool. It’s great to have a…county that works as your partner. All of us at
Moore Technologies feel very fortunate that we are the pioneers that will bring the Silicon
Valley to the San Joaquin Valley.”
Guy Chaddock began restoring antiques and crafting one-of-a-kind reproductions more
than 40 years ago. Later, a small group of European craftsmen joined the company and
from this nucleus of skilled furniture makers a line of country French and country English
home furnishings evolved. Many of the enduring designs created during these early years
remain in the company product line and continue to be best sellers.
Today, the current generation of master craftsmen still construct and finish each item to
order, creating timeless heirloom quality home furnishings to be treasured through the
generations. Howard Harris, Director of Marketing for Guy Chaddock & Co., believes that
Kern County serves as an ideal business partner for the company.
Guy Chaddock & Co.

“Our employees attained the opportunity to live in a place that gave them a high quality,
affordable way of life; and we attained the ability to continue to grow and make Guy
Chaddock & Co. furniture even more well-known.”
22
To enable your search for data, we have included a demographics overview of the counties of the
California Central Valley Economic Development Corporation. For a complete listing of all Central Valley
information broken down by county.
POPULATION
Population, 1-1-00 3,298,300
INCOME AND SALES

Personal income, 1998 (mill.) County Rank 62,249.2
Total taxable sales, 1999 ($ mill.) 30,767.8

Taxable retail sales 20,585.1
Avg. earnings per job, 1998 26,856.35956

Avg. wages per job, 1998 23,930.87
Avg. earnings per nonfarm proprietor, 1998 24,926.93
HOUSING AND CONSTRUCTION

Housing stock 1/1/00 1,117,761
Single family 802,546
Multiple family 232,994
Mobile homes, trailers, etc. 82221
Vacancy rate (percent): 6.5
Housing authorizations, 1999 (valuation

2,088.6
$mill.)
Nonresidential permits 1,216.4
AGRICULTURE
Number of farms, 1997 27,489
Acreage in farms, 1997 9,764,189
23
Agricultural employment, 2000 135,010
* Fresno and Madera counties (MSAs) combined
Value of production, 1999 ($ mill.) 14,463.2
Source: California Department of Finance

Economic Research
www.dof.ca.gov
Nonagricultural wage & salary

1,004,060
employment, 2000 *
Construction/mining 66,730
Manufacturing 119,720
Transportation-utility 52,610
Trade 239,570
Finance-insurance- real estate 37,720
Services 230,500
Federal government 47,980
State-local government 182,930
* Fresno and Madera counties (MSAs) combined
Economic Research
www.dof.ca.gov
24
Civilian employment 1,325,360
Unemployment 184,720
Unemployment rate 12.2%
Economic Research
www.dof.ca.gov
25
Agriculture
Value-Added Food Processing
Computer, Data Processing, Call Centers, and Fulfillment Centers
Software and Hardware Development
Electronic Components and Accessories
Manufacturing
Plastic Products and Advanced Materials
Agriculture
The California Central Valley has long been known for its extraordinary accomplishments in the
agricultural industry. Producing more than 350 different types of crops valued at nearly $19 billion each
year, the region has developed the reputation for being the most productive agricultural area in the world.
Value-Added Food Processing
The majority of the Central Valley’s crop production is shipped out of the region for further processing, or
value-added processing. However, many companies in the Central Valley are learning of the advantages
of value-added processing within their own region. Raw products can arrive at a processing facility
quicker and fresher than those transported over long distances, thus creating better quality products.
Land, labor and construction costs and availability allow for a better cash flow situation also. In addition,
transportation of a final product reduces overall handling and costs.
Computer, Data Processing, Call Centers and Fulfillment Centers
The Central Valley is rapidly developing a reputation as an ideal site for these various centers. The
process began when workers from the Bay Area realized that home ownership was out of their reach
despite their well paying positions. Houses in the region typically sell for 25% to 40% less than similar
homes located in the Bay Area. This affordability has created a very large “commuter work force” that has
transferred to the Central Valley. As a result, employers began relocating their businesses to the Central
Valley to seize the advantages of low-cost buildings, strong telecommunications infrastructure, and willing
employees who desire to shrink their commute times.
Software and Hardware Development
As applications of high technology have been developed, many companies have come to understand the
growing influence of the Central Valley . Federal and State government programs have, and continue, to
fund exploration and advancement of the Central Valley for this important industry. Higher educational
institutions have joined the process and together the region is fostering new opportunities in this area.
Human capital is the primary resource as families and individuals seek affordable living styles with less
commuting and hassle. The Central Valley presents an attractive alternative to highly trained personnel
seeking a more satisfying lifestyle.
26
Electronic Components and Accessories
New technological advances allow for the Central Valley’s farming community to reduce their costs and
increase their profit. However, many industries -- not just those that are agriculturally based -- abound
from the development of electronic components in the Central Valley.
Manufacturing
The Central Valley enjoys a wealth of transportation options and access to various markets not only
throughout California, but also throughout the West and the Pacific Rim. As a result, these manufacturing
industries have flourished. Once again the availability of skilled workers with a work ethic, low land and
construction costs, have attracted a variety of manufacturing ventures. A number of incentive programs
have been adopted to encourage the further development of manufacturing operations.
Plastic Products and Advanced Materials
The collaborative spirit of these industries allows each firm to thrive. A sharing of suppliers, resources,
transportation, and other factors has benefited many independent firms. The use of plastics used in the
agricultural industry is increasing, especially in terms of overseas shipment packaging material. Low land
and construction costs -- combined with abundant and skilled labor force -- creates numerous
opportunities for many expanding companies.
27
LOCATION MAP
28
29
KETTLEMAN CITY PROFILE
Kettleman City, California map
Population (year 2000): 1,499

Males: 827 (55.2%), Females: 672 (44.8%)
Elevation: 234 feet
County: Kings
Land area: 0.2 square miles
Zip code: 93239
Median resident age: 24.0 years

Median household income: $22,409 (year 2000)
Median house value: $77,500 (year 2000)
30
Races in Kettleman City:
Hispanic (92.7%)
Other race (66.2%)
White Non-Hispanic (5.4%)
Two or more races (4.9%)
American Indian (2.5%)
(Total can be greater than 100% because Hispanics could be counted

in other races)
Ancestries: .
For population 25 years and

over in Kettleman City CDP
High school or
higher: 18.8%
Bachelor's degree or
higher: 1.5%
Graduate or
professional degree:
1.5%
Unemployed: 23.4%
Mean travel time to
work: 29.9 minutes
For population 15 years and

over in Kettleman City CDP
Never married:
37.6%
Now married: 54.3%
Separated: 1.7%
Widowed: 3.2%
Divorced: 3.1%
61.0% Foreign born (60.7% Latin America).
31
Nearest city with pop. 50,000+: Kettleman City satellite photo by USGS
Visalia, CA (50.0 miles, pop.

91,565).
Nearest city with pop. 200,000+:

Fresno, CA (54.7 miles, pop.
427,652).
Nearest city with pop. 1,000,000+:

Los Angeles, CA (171.9 miles,
pop. 3,694,820).
Nearest cities: Avenal, CA (10.9

miles), Stratford, CA (15.8 miles),
Huron, CA (16.4 miles), Lemoore
Station, CA (18.1 miles),
Lemoore, CA (23.7 miles),
Armona, CA (27.4 miles), Corcoran, CA (28.0 miles), Coalinga, CA (28.7 miles).
Industries providing employment: Agriculture,forestry,fishing and hunting, and mining (60.1%),

Arts,entertainment,recreation,accommodation and food services (14.8%).
Average weather in Kettleman City, California
Based on data reported by over 4,000 weather stations
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average temp. (°F) 47.2 52.3 56.4 61.8 69.4 76.1 80.8 79.6 75.1 66.3 54.0 46.4
High temperature (°F) 55.8 63.3 68.7 76.5 85.4 92.9 97.5 95.9 91.0 81.5 66.1 56.2
Low temperature (°F) 38.5 41.2 44.1 47.1 53.4 59.3 64.0 63.2 59.1 51.1 41.8 36.4
Precipitation (in) 1.6 1.6 1.5 0.5 0.2 0.1 0.0 0.0 0.3 0.4 0.7 0.9
Normal climate around Kettleman City, California
Based on data reported by main weather stations
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Days with precip. 7 7 7 4 2 1 0 0 1 2 5 6
32
Wind speed (mph) 5.3 5.9 6.8 7.4 8.0 8.1 7.2 6.7 6.1 5.4 5.0 5.1
Morning humidity (%) 88 85 82 76 68 63 60 64 68 72 83 87
Afternoon humidity (%) 65 56 48 37 31 28 27 29 32 38 53 64
Sunshine (%) 47 65 77 85 90 95 97 96 94 88 66 46
Days clear of clouds 7 8 11 13 18 22 26 25 23 19 12 8
Partly cloudy days 7 8 8 8 9 6 4 4 5 7 7 7
Cloudy days 17 13 12 8 5 2 1 1 2 5 10 16
Snowfall (in) 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Hospitals/medical centers near Kettleman City:
COALINGA REGIONAL MEDICAL CENTER (about 28 miles; COALINGA, CA)

CORCORAN DISTRICT HOSPITAL (about 29 miles; CORCORAN, CA)
CENTRAL VALLEY GENERAL HOSPITAL (about 32 miles; HANFORD, CA)
Airports certified for carrier operations nearest to Kettleman City:
VISALIA MUNI (about 46 miles; VISALIA, CA; ID: VIS)

PASO ROBLES MUNI (about 51 miles; PASO ROBLES, CA; ID: PRB)
FRESNO YOSEMITE INTERNATIONAL (about 55 miles; FRESNO, CA; ID:
FAT)
Other public-use airports nearest to Kettleman City:
NEW COALINGA MUNI (about 25 miles; COALINGA, CA; ID: C80)

HARRIS RANCH (about 25 miles; COALINGA, CA; ID: 3O8)
CORCORAN (about 27 miles; CORCORAN, CA; ID: CRO)
Colleges/universities with over 2000 students nearest to Kettleman City:
WEST HILLS COMMUNITY COLLEGE (about 28 miles; COALINGA, CA; Full-

time enrollment: 2,406)
COLLEGE OF THE SEQUOIAS (about 49 miles; VISALIA, CA; FT enrollment:
6,295)
REEDLEY COLLEGE (about 55 miles; REEDLEY, CA; FT enrollment: 5,344)
CALIFORNIA STATE UNIVERSITY-FRESNO (about 56 miles; FRESNO, CA; FT
enrollment: 16,035)
33
FRESNO CITY COLLEGE (about 56 miles; FRESNO, CA; FT enrollment:
10,741)
CALIFORNIA POLYTECHNIC STATE UNIV-SAN LUIS OBISPO (about 57 miles;
SAN LUIS OBISPO, CA; FT enrollment: 15,985)
CUESTA COLLEGE (about 57 miles; SAN LUIS OBISPO, CA; FT enrollment:
6,121)
Public high school in Kettleman City:
ADELANTE HIGH (CONT.) (Students: 9; Location: 124 BECKY PEASE ST.;

Grades: 09 - 12)
Public primary/middle school in Kettleman City:
KETTLEMAN CITY ELEMENTARY (Students: 303; Location: 701 GENERAL

PETROLEUM ST.; Grades: KG - 08)
Kettleman City compared to California state average:
Median household income significantly below state average.

Median house value significantly below state average.
Unemployed percentage significantly above state average.
Black race population percentage significantly below state average.
Hispanic race population percentage significantly above state average.
Median age significantly below state average.
Foreign-born population percentage significantly above state average.
Renting percentage above state average.
Length of stay since moving in below state average.
Number of rooms per house below state average.
House age significantly below state average.
Number of college students significantly below state average.
Percentage of population with a bachelor's degree or higher significantly below
state average.
Strongest AM radio stations in Kettleman City:
KMJ (580 AM; 50 kW; FRESNO, CA; Owner: INFINITY RADIO OPERATIONS
INC.)
KWRU (940 AM; 50 kW; FRESNO, CA)
KERI (1180 AM; 50 kW; WASCO-GREENACRES, CA; Owner: KWSO, INC.)
KGDP (660 AM; 50 kW; ORCUTT, CA; Owner: RADIO REPRESENTATIVES,
INC.)
34
KTRB (860 AM; 50 kW; MODESTO, CA; Owner: PAPPAS RADIO OF
CALIFORNIA, A CALIFORNIA LIMITED PARTNERSHIP)
KOOR (790 AM; 10 kW; CLOVIS, CA; Owner: INFINITY RADIO OPERATIONS
INC.)
KCBC (770 AM; 50 kW; RIVERBANK, CA; Owner: KIERTRON, INC.)
KIRV (1510 AM; daytime; 10 kW; FRESNO, CA; Owner: GORE-OVERGAARD
BROADCASTING, INC)
KNZR (1560 AM; 25 kW; BAKERSFIELD, CA; Owner: BUCKLEY
BROADCASTING CORP. OF CALIF.)
KLAC (570 AM; 50 kW; LOS ANGELES, CA; Owner: AMFM RADIO LICENSES,
L.L.C.)
KSPN (710 AM; 50 kW; LOS ANGELES, CA; Owner: KABC-AM RADIO, INC.)
KXEX (1550 AM; 10 kW; FRESNO, CA; Owner: RAK COMMUNICATIONS, INC.)
KIRN (670 AM; 35 kW; SIMI VALLEY, CA; Owner: LOTUS OXNARD CORP.)
Strongest FM radio stations in Kettleman City:
K203AQ (88.5 FM; HELM, ETC., CA; Owner: FAMILY STATIONS, INC.)
K217EQ (91.3 FM; COALINGA, CA; Owner: CALVARY CHAPEL OF TWIN
FALLS, INC.)
KDKL (88.3 FM; COALINGA, CA; Owner: EDUCATIONAL MEDIA
FOUNDATION)
KZPO (103.3 FM; LINDSAY, CA; Owner: LINDSAY BROADCASTING)
KGZO (90.9 FM; SHAFTER, CA; Owner: THE ASSOCIATION FOR
COMMUNITY EDUCATION, INC.)
KCRZ (104.9 FM; TIPTON, CA; Owner: WESTCOAST BROADCASTING, INC.)
KGEN-FM (94.5 FM; HANFORD, CA; Owner: AZTECA BROADCASTING
CORPORATION)
35
ASSESSOR’S DATA & LEGAL DESCRIPTION
Assessor’s Data
Assessed Value (2005-2006) for the subject property is following:
Total Land Improvement 2005-06

APN Lot(s) Value Value Value Taxes
042-150-064 See Title $321,170 $230,054 $91,116 $4,252.40
Tax Rate Area: 0.013240340
California real estate law requires a reevaluation upon sale or new construction, or
consummation of a lease of 35 years or more. This law limits real property taxation to 1% of
market value, plus bonded indebtedness within a local taxing district. In subsequent years, taxes
are limited to annual increases of 2 percent. According to the standards of professional appraisal
practice, the taxes projected in this appraisal will be based upon the value concluded in this
report and will not necessarily conform to the assessor's figures.
The assessed value and real property taxes of the subject property are the result of State
Proposition 13, statewide ballot issue passed in 1976. The proposition limits to 1% of the
property's assessed value, plus a factor for bonded county or city debt. Assessed values are
modified upon most transfers based upon the market value of the property at that time. Finally,
all assessed values are adjusted upward 2% annually unless they have been reassessed in the year
of transfer. In our analysis of the subject property, we have considered both the long and short
terms effects on value due to change in tax liability of the property.
The tax rate is calculated using the above assessed values and total taxes paid. Excess tax rates
could have a negative impact on property values. Unless otherwise noted, there are no known
special assessments for street improvements, sewer, water, etc., known to us.
Legal Description of Subject
The Subject property is located in the City of Kettleman, County of Kings, State of California,
and described as: SEC 30/22/19 PARCEL 1 OF PARCEL MAP RECORDED 02/28/89 IN
VOLUME 11 AT PAGE 32 OF PARCEL MAPS. (FORMERLY A PORTION OF 42-150-
01)
36
OWNERSHIP INFORMATION
37
38
39
PLAT MAP
40
41
SITE DATA
GENERAL INFORMATION
Location: The subject property has one parcel located on the cul-de-sac of
Cyril Avenue, touches Highway 41 on the south side, and Freeway
5 west side; the street address is commonly known as 33132 Cyril
Place, Kettleman City, CA 93239.
Assessor’s Parcel Nos.: 042-150-064
Lot Description: The subject site consists of two lots, designated as ONE legal
parcel. The subject site is a large irregular shaped. The gross land
area is 11.67 acres. All site dimensions are taken from the Kings
County Assessor's plat map shown on the preceding page.
Street: Cyril Place is a 50 foot-wide fully improved major street with two-
way traffic and runs east to west, The street is improved with
concrete curbs and gutters, and is a two-lane street that has on-
street parking on both sides. There is adequate street lighting. This
street consists of asphalt-paved traffic lanes in two directions.
Topography: The subject site is above street level and is for most part level with
some mild to minor undulation. Drainage appears to be adequate.
Access: The subject has an average cul-de-sac location with average

visibility from passing automobile traffic. The subject can be
directly accessed from Cyril Place by way of driveway into the
parking lot.
Easements: No title report was made available for review. In our investigation,
we did not discover any obvious, apparent or possibly adverse
easements which could have a substantial effect on the use or
valuation of the subject property. The typical utility easements
were noted. A small portion of the total subject site area may be
taken by the city for public sidewalk use.
Soil: No geological report has been reviewed. Soil conditions are

assumed to be of sufficient load bearing capacity to sustain
proposed development. Drainage appears to be and is assumed to
be adequate to accommodate local storm water run-off.
42
Utilities: All necessary utilities are available, and connected, to the site
including water, sanitary sewer, natural gas, electricity, telephone,
and cable television.
Water is available to the site, however any future development and

water use is subject to the approval of the County Planning
Commission. “Any and all future development in Kings County
and the area of the subject property is contingent upon the
continued availability, beneficial use and conservation of its
water.”
A new Water Treatment Facility is in the planning stages and is to

be located within approximately 1.5 miles north of subject of
proposed development. We were informed that the Kettleman City
Community Services District has entered into an agreement with
the developer of the subject to develop the proposed water
treatment facility; however the appraiser is unaware of any specific
timetable as to when the facility will be built and operational.
See addendum for additional information concerning the proposed

water treatment facility. We have also included correspondence
from INTEGRATED DESIGNS regarding water treatment facility
and infrastructure.
Hazardous Conditions: None. The property is located in flood Zone X, an area of minimal
flood danger; thus flood insurance is not required. The Panel
Number is 0600860275B effective date is 08/04/88.
Special Hazards: Central California may or may not a history of earthquake activity
and we make no representation as to the subject's degree of risk or
exposure to such activity in the future. There is no visible evidence
of any substantial earthquake damage to the subject or other
structures in the immediate area.
43
Toxic Waste: The existence of hazardous material, which may or may not be
present on the property, was not observed by this appraiser. The
appraiser, however, is not qualified to detect such substances. The
presence of substances such as asbestos, urea-formaldehyde, foam
insulation, or other potentially hazardous materials either above or
below ground level may affect the value of the property. The value
estimate is predicated on the assumption that there is no such
material on, in, or near the property that would cause a loss in
value. No responsibility is assumed for any such conditions, or for
any expertise or engineering knowledge required to discover them.
The client is urged to retain an expert in this field, if desired.
Summary: The site is irregular shaped parcel located in the Kettleman City
Site has off-site improvements that make it suitable for the existing
improvements. No adverse factors were noted.
44
ZONING
The subject is located within Kettleman City and has a CH (Highway Commercial) zoning
designation. Legal uses include commercial/retail, banks, restaurants, hotel/motel, professional
buildings, day care facilities, limited research and development as well as various public uses.
The Kings County planning department personnel indicated that the proposed development for
subject conforms to the current zoning and general plan ordinances.
Zoning Ord. No. 269.56 Art. 13

Sec. 1307. CH Highway commercial district.
A. Application:
The Highway Commercial District is intended primarily for application to areas along major
highway entrances to a community in accord with policies of the general plan where controlled
access to the highway is afforded for the convenience of patrons traveling the highway by the
provisions of frontage roads, interchanges and channelized intersections.
B. Permitted uses: None.
C. Permitted uses: site plan review:

The following uses may be permitted in accordance with the provisions of Article 21:
1. Establishments which provide services or supply commodities primarily for the convenience
of patrons traveling on state highways and major county road entrances to the community
including:
Automobile (new and used) sales
Bars, cocktail lounges or nightclubs
Bowling alleys
Bus depots and transit stations
Convenience stores
Hotels and motels
Ice cream and confectionery stores
Public utility structures, services and facilities
Repair garages
Restaurants, including fast food and drive-in restaurants
Roadside rest areas
Service stations, for automobiles and trucks
Soda fountains
Trailer sales and service and rentals
45
2. Overnight dependent recreational vehicle parking areas limited to six (6) spaces in conjunction
with another permitted use, subject to the provisions of Article 16.
3. Offices and retail stores incidental to and on the same site with a highway commercial
establishment prescribed in Paragraph 1 of this Section.
4. Signs in accordance with provisions of Section 1318 of this Article.
5. Incidental and accessory structures and uses located on the same site as a permitted use.
6. Outdoor advertising structures.
7. Accessory structures and uses located on the same site as a conditional use which has been
approved by the planning commission, except for those uses which are owned or operated by a
public agency.
8. Reserved.
9. Similar commercial uses determined by the zoning administrator to be compatible with the
uses listed in Section
D. Conditional uses; planning commission approval:

The following conditional uses may be permitted in accordance with the provisions of Article 19:
1. Churches and other religious institutions.
2. Private clubs and lodges.
3. Public buildings and grounds.
4. Accessory structures and uses which are owned or operated by a public agency and are located
on the same site as a conditional use requiring planning commission approval.
5. Cemeteries.
6. Amusement parks, automobile and motorcycle racing stadiums and drag strips; drive-in
theaters; golf driving ranges; pony riding rings; race tracks; riding stables and riding
academies; skating rinks; sports arenas and sports stadium.
7. Overnight recreational vehicle parking facilities for more than six (6) spaces.
8. In the immediate area of interchanges along Interstate-5, illuminated advertising structures
advertising highway traveler services at that interchange which exceed the maximum copy
area per site or per use allowed by Section 1318 of this Article, but not larger than is necessary
to be clearly seen by travelers on Interstate-5, provided the structure is designed by a
Professional Engineer and does not pose a safety hazard.
9. Towers used for commercial cellular telephone service.
46
SITE IMPROVEMENTS
Off-Sites:
Street: Asphalt
Curb: Concrete
Sidewalk: Concrete
Gutters: Concrete
Utilities: All to the site, underground utilities.
On-Sites:
Fences, wall: Chain Link Fence

Landscaping: None
Topography: Mostly Level With Some Mild Undulation
Overall Utility: Average
Parking: Unimproved Open Space
Comments: The functional utility of the subject site is considered average. No

apparent inadequacies or detriments noted at the time of
inspection.
Remarks: The properties lies in one of the highest traffic counts along the I-5
corridor; over 41,000+- vehicles per day. The RV traffic here is
heavy between the 45 campgrounds both East and West on I-5 and
Highway 41. I-5 is the West Coast’s most heavily traveled
interstate highway connecting the Canadian border with the
Mexican border. Over 10,000+- trucks per day.
Traffic Count: 2002 average annual traffic was: Hwy 41 - 8,900+-

vehicles per day. I-5 - 32,000+- vehicles per day. Primary traffic
is
Commercial trucking between Southern California and Northern
California between the San Joaquin Valley agriculture area and the
Central Coast.
47
HIGHEST AND BEST USE
Fundamental to the concept of value is the theory of Highest and Best Use, which may be
defined as follows:
“The most profitable, likely use to which a property can be put. The opinion of
such use may be based on the highest and best, most profitable continuous use to
which the property is adapted and needed or likely to be in demand in the
reasonably near future. However, elements affecting value which depend upon
events or a combination of occurrences which, while with the realm of possibility,
are not fairly shown to be reasonably probable, should be excluded from
consideration. Also, if the intended use is dependant on an uncertain act of
another person, the intention cannot be considered.”
“That use of land which may reasonably be expected to produce the greatest net
return to land over a given period of time. That legal use which will yield to the
land the highest present value, sometimes called optimum use.”
The highest and best use of the land (or site) if vacant and available for use may be different
from the highest & best use of the improved property. This is true when the improvement is not
an appropriate use, but it makes a contribution to the total property value in excess of the value
of the site.
The following tests must be met in estimating the highest and best use: The use must be legal.
The use must be probable, not speculative or conjectural. There must be a profitable demand for
such use and it must be expected to return to the land the highest net return for the longest period
of time.
These tests have been applied to the property as vacant, and as currently improved. In arriving at
the estimate of highest & best use, the subject site was analyzed as vacant and available for
development.
48
HIGHEST & BEST USE, AS VACANT
Physically Possible
The size, shape, terrain, location, and utility availability impose physical constraints upon the
types of uses possible for the site. Any use incompatible with the utility, capacity or constraints
by the size or shape would not be considered physically possible. As noted in the "Site
Description" section of this report, the site is mostly a level irregular large site with some mild
and major undulation. The size and shape of the subject site do not prohibit its development.
The sites are cul-de-sac parcel with frontage to Cyril Place. Access, ingress and egress, and
exposure factors are considered average for the area.
Drainage appears to be adequate. Soil conditions are assumed to be of sufficient load bearing
capacity for most typical commercial developments. All necessary public utilities are in place.
Municipal services are provided by the County of Kings. In general, the larger the site, the
greater its development ability to achieve economies of scale. The site is average in size and has
average frontage. The irregular shape is a positive attribute.
In conclusion, by virtue of the site's size and shape, there are a variety of possible uses. No
physical aspects were noted which would impose unreasonable constraints on its development to
its highest and best use. It is physically possible to utilize the site for almost any commercial.
Legally Permissible
After considering those uses that are physically possible, the uses that are legally permissible
were considered. As mentioned earlier in the “Zoning” section of this report, the sites fall under
the “CH” zoning designation. The zoning classification allows for a wide variety of commercial
& residential uses such as retail stores, motel/hotel & others. All permitted applications are
subject to review and acceptance by the Kettleman City, the subject is currently legal.
49
Financially Feasible
After determining the uses that are physically possible and legally permissible, the next step is to
determine which are likely to produce an income, or return, equal to or greater than the amount
needed to satisfy operating expenses, financial obligations, and capital amortization.
The subject's location is to south of Kettleman residential area and centrally located to the
commercial freeway business area. An investigation of the retail and motel market of the subject
neighborhood revealed average vacancy levels. The vacancy levels for retail buildings along
Highway 41 and adjacent street appear average. The vacancy levels depend on the property’s
location, tenant mix, condition and quality of improvements and management. The average
vacancy rates appear to be mostly attributed to the economy of Kettleman City and market
conditions. Commercial use, either for motel, retail, industrial, storage, auto garage are
considered viable possibilities.
With respect to the site's location, the surrounding uses would indicate some type of commercial
(motel or retail or auto garage) development. The entire neighborhood is comprised of these
types of development and is expected to remain in those uses.
In summary, the average vacancy rates in the neighborhood observed for retail properties in the
subject's immediate neighborhood indicated the financially feasible use of the subject land is for
future use as one of the above types of properties. This is the primary use which conforms to the
present uses in the area.
As vacant, the site may be developed if market conditions are right.
Maximally Productive
Of the financially feasible options, the use that provides the maximum return to the land is the
highest and best use. Given the average vacancy levels in the subject area, a retail, motel,
industrial, storage or auto garage development would be the maximally productive use of the
site.
50
After considering all factors, it is concluded that the highest and best use of the site, as
vacant, is for future development if it can obtaining new construction financing, and the
fact that land acquisition and development costs, when added together, can typically be
regained upon sale.
51
HIGHEST AND BEST USE, AS IMPROVED
The site is currently is a large raw land site with no significant improvements. For all practical
purposes the present two vacant parcels are an interim use and being held for development. The
highest and best use of the site is to subdivide the site into numerous smaller parcels, per
proposed tentative map, for specific different commercial uses.
52
VALUATION
The valuation process is employed to develop a well supported estimate of defined value, which
is based on consideration of all pertinent general and specific data. Toward this goal, an
appraiser analyzes a property by applying specific appraisal procedures that reflect three distinct
methods for analyzing data mathematically. These are:
1. THE COST APPROACH, which considers the current cost of producing or

replacing the improvements, less loss in value from depreciation, added to land
value.
2. THE MARKET APPROACH, which considers the value indicated by recent sales
of comparable properties in the market.
3. THE INCOME CAPITALIZATION APPROACH, which considers the value of a

property's earning power based upon a capitalization of income.
Selection of Methodology
The appraisers have used one of the valuation methods in order to determine the market value of
the subject. Improved commercial properties are usually purchased for use by the owner or to
lease; as an investment, and from an investor's point of view, earning power is the critical
element affecting the property.
The improved sales comparison (market) approach was used since these are vacant sites; no
income approach was used nor the cost approach was used in order to determine what it would
cost to replace the subject property, “as-is”.
In evaluating the subject property market approach (land) was used only.
Property Condition Appraised
The subject property is appraised in "as-is" condition and in its present use. Comments, ratings
and comparisons in this report consider the subject property as it was at the time of inspection.
No adverse conditions or detriments were noted; the subject property was inspected on October
22, 2006. All conditions noted are as of that date.
53
LAND SALES COMPARISON APPROACH
This approach is based on the assumption that an informed purchaser will pay no more for a
property than the cost of acquiring a substitute property with the same utility.
The cost of acquiring a property is generally estimated on a square foot basis, using comparative
figures from other comparable properties which have recently been sold in the same market area
or a similar competitive area.
Land Valuation
Several methods are available to the appraiser for the valuation of land. The four basic methods
are:
1. DIRECT SALES COMPARISON METHOD: This calls for comparing,

weighing and relating similar vacant sites to the land being appraised. Four
vacant land sales were located and compared with the subject for various value
factors.
2. ABSTRACTION METHOD: This is also known as Distribution and Allocation.

It involves allocation of the appraised total value of the property between land and
building. This may be accomplished either on a ratio basis or by subtracting the
present worth of the improvements from the total appraised value of the improved
property. With this method, typically, improved sites are located, with the
depreciated value of the improvements estimated and then deducted for the total
sales price. This method produces an approximate indication of the site value,
however as the subject has no improvement this method was not considered
appropriate.
3. ANTICIPATED USE OR DEVELOPMENT METHOD: This is applicable to

undeveloped land and calls for estimating total value as if the land were
subdivided and sold, and subtracting the development cost, incentive costs and
carrying charges. This method was not considered applicable due to the lack of
pertinent data.
4. LAND RESIDUAL METHOD: This capitalizes into value the residual income
imputable to the land as obtained with a new building improvement which is the
highest and best use of the land. The subject is unimproved thus this method was
not considered applicable.
In order to determine the value of the subject site, the direct sales comparison method was
utilized.
54
COMPARABLE LAND SALES MAP
55
Land Sale No. 1 510 E Herndon Avenue, Fresno, CA 93720
Thomas Bros. Map: FC124-A/1 APN: 442-090-41

Sale Data
Sale Price: $1,850,000 Price / SF: $5.14
Sale Date: 11/29/2005 Document No.: 278306
Terms : N/Av
Physical Description
Current Use: Commerce site & trailer park
Land Size: 360,241 SF or 8.27 Acres
Shape: Irregular
Topography: Level
Frontage: 694 Feet (Clinton)
Utilities: All to site
Zoning: C-6, City of Fresno
Access/Utility: Average/Average
Location: Average
Corner Lot: Yes
Buyer: N/Av
Seller: Chimienti, Trust
Source: Marshall & Swift #14118301/NDC Data
MLS – Century 21 ( C. Watson/J & J Realty)
Leroy Horch (559) 432-1221
56
Land Sale No. 2 510 E Herndon Avenue, Fresno, CA 93720
Thomas Bros. Map: FC 1203-A/7 APN: 303-210-05

Sale Data
Terms : N/Av
Current Use: Vacant site (raw land) intended use (office planned unit develop)
Shape: Rectangular
Topography: Level
Frontage: 274 Feet (E Herndon)
Zoning: CP, City of Fresno
Location: Average
Corner Lot: No
Buyer: Meridian Herndon
Seller: Baltara Enterprises
Source: CoStar Comps, Inc.
57
Land Sale No. 3 1515 Hoff Drive, Ripon, CA 93312
Thomas Bros. Map: APN: 245-170-65

Sale Data
Terms : N/Av
Current Use: Vacant site
Shape: Rectangular
Topography: Level
Frontage: N/A
Zoning: C, City of Ripon
Location: Average
Corner Lot: Yes
Buyer: SpeedCo, Inc.
Seller: Dirk Hofman
Source: Zengel & Associates (File #5044)
58
Land Sale No. 4 27675 Bernard Drive, Kettleman City, CA 93239
Thomas Bros. Map: KC 1950-G/5 APN: 042-380-007

Sale Data
Sale Price: 550,000 Price: $11.08
Terms : Conventional – Down payment $192,500 (35%)
Current Use: Closed Down Burger King Restaurant
Land Size: 49,656 SF / 1.14 Acres
Shape: Irregular
Topography: Hillside
Frontage: 179.89 Bernard
Zoning: CH, City of Kettleman
Location: Average
Corner Lot: Yes
Buyer: Azurelite Development LLC
Seller: Avila Joaquin
Source: NDC Data/Title Co.
59
COMMENTS ON LAND SALE COMPARABLES
Sale No. 1: This property is a corner lot located in approximately 50 miles north east of
subject. This area is more developed and considered similar in location. This property has
a similar Commercial zoning as subject. This site has good access and good visibility.
There are two parcels which is zoned C-6. On the 4.62 acre parcel is a trailer park. The
3.65 acre parcel is vacant. The 4.62 acre parcel may be rezoned for units. No significant
value is given to trailer park improvements as these are considered as interim use.
Sale No. 2: The property located approximately 50 miles north east of subject. This area
has more developed and is considered a similar location. This property is an interior
location. It also has average access and average visibility. The zoning on this site
commercial and in some respects is comparable to that of subject.
Sale No. 3: This property is located approximately 60 miles north east of subject. This
area is considered similar to subject. This property is located away from major Interstate
Highway and this allows average access and average visibility. This site is zoned
Commercial and is similar to that of subject.
Sale No. 4: This property is located approximately 1 block south of subject. This
location is considered very similar to subject as it is located near Highways 5 and 41. The
zoning is CH (Commercial Highway). This comp is considered a good comparable due to
closest location, accessibility, topographic, zoning, utility, and view amenity, however it
is both small in lot area and has older improvements on the site. No significant value is
attributed to the improvements as they are in below average condition and in need of
remodeling or replacement.
60
LAND VALUE ANALYSIS
Selection of Comparable Sales
The subject site is 508,345and is presently one parcel. In order to derive an indicated value for
the subject site, sales transactions of comparable properties have been considered. A thorough
search for comparable sales was made in the general market area of the subject property. No
sales of large parcels similar to the subject were found in the immediate area. The comparable
sales displayed are located in the greater market area and are felt to be the best indicators of the
subject's market value available at the time of inspection. The sales considered are the most
recent (due to lack of recent market activity) and most similar in allowable uses and other
characteristics (size, frontage, corner influence, etc.), applicable in estimating the value of the
subject's land. The unit of comparison considered significant in determining the value for the
subject property was price per square foot of land area. This is the accepted criteria for
commercial land in Kettleman City.
Analyses
The unit of comparison selected is the result of past experience and interviews with market
participants. The sales are included and summarized below:
Sale No. Sale Date Land Sale Price Size (SF) Zoning Price/SF Location
Subj. N/A N/A 508,345 CH N/A Average
1 11/29/05 $1,850,000 360,241 C $5.14 Average+
2 07/28/04 $1,650,000 165,964 CP $9.94 Average+
3 05/27/05 $1,280,000 123,275 C $10.38 Average
4 02/23/05 $550,000 49,656 CH $11.08 Average
In valuing via the Direct Land Sales Comparison, we have conducted a search of the local
market area for recent bona fide transactions providing support for the site value on a unit value
basis. As mentioned, each sale was analyzed and compared on a price per square foot basis.
Most of the comparables presented are located within a small radius of the subject. Some of the
sales lie within the same general sphere of influence of the subject neighborhood, although
varying location attributes affect them considerably.
61
LAND SALES ADJUSTMENT GRID
(Sequence of Adjustments)
ELEMENT Subject Sale No. 1 Sale No. 2 Sale No. 3 Sale No. 4
Sale Price/SF ---- $5.41 $9.94 10.08 $11.08
Real Property Rights Fee Simple Fee Simple Fee Simple Fee Simple
Adj. For Rights ---- N/A N/A N/A N/A
Adjusted Price ---- $5.41 $9.94 $10.08 $11.08
Financing Terms ---- Market Market Market Market
Adj. For Financing ---- N/A N/A N/A N/A
Adjusted Price ---- $5.41 $9.94 $10.08 $11.08
Condition of Sale ---- Typical Typical Typical Typical
Adj. For Condition of Sale ---- N/A N/A N/A N/A
Adjusted Price ---- $5.41 $9.94 $10.08 $11.08
Date of Sale ---- 11/29/05 07/28/04 05/27/05 02/23/05
Adj. For Sale Date ---- 0% 0% 0% 0%
Adj. Base Price ---- $5.41 $9.94 $10.08 $11.08
Location Average Average+ Average+ Average Average
Adjustment ---- -10% -10% 0% 0%
Topography Level Level Level Level Level/Hillside
Adjustment ---- ---- ---- ---- ----
Corner Influence Cul-De-Sac Corner Interior Corner Corner
Adjustment ---- 0% 0% 0% 0%
Access/Utility Avg/Avg Avg/Avg Avg/Avg Avg/Avg Avg/Avg
Adjustment ---- 0% 0% 0% 0%
Site Area SF/Improvement 11.67 Ac 8.27 Ac 3.81 Ac 2.83 Ac 1.14 Ac
Adjustment ---- -15 -30 -30% -35%
Zoning CH C C C CH
Adjustment ---- 0% 0% 0% 0%
Net Adjustment ---- -25 -40 -30% -35%
Adjusted Value ---- $4.05 $5.96 $7.05 $7.20
Weighted % ---- 30% 25% 15% 30%
62
The comparables are analyzed in relation to the subject property. The sequence in which
adjustments are applied to the comparables is determined by the market. The market in the
subject area indicates the sequence of adjustments are the following:
a) Property Rights
b) Financing Terms
c) Condition of Sale
d) Date of Sale (Market Conditions)
Adjustments for the property rights, financing terms, condition of sale, and date of sale (market
condition) are made to the total sale price. The adjusted price is then used as a base price; other
value factors are adjusted on an overall "net" basis against this new "base", for various physical
characteristics (see market adjustment grid).
There are many techniques to identify and measure adjustments. In our analysis, paired data set
analysis was sued for quantitative technique and relative comparison analysis for qualitative
technique.
Paired data analysis is a process in which two or more market sales are compared to derive an
indication of the size of the adjustment for a single characteristic. Relative comparison analysis
is the study of the relationship indicated by market data without recourse to quantification. (Def.
from The Appraisal of Real Estate, 10th Edition). However, to measure the valuation of the
subject using a weighted mean value technique, the appraiser needs visible dollar or percentage
adjustments for physical characteristics. Thus, the appraiser attempts to make adjustments for
differences in physical characteristics with quantitative techniques.
Property Rights
Sale price is predicated on real property interest conveyed. Basically, there are four types of
property rights: fee simple (based on market), leased fee (based on contract), partial interest, and
leasehold interest. The subject is considered in leased fee rights. The real property rights
conveyed for the transactions are fee simple which is the typical land sale in the subject
marketplace. Adjustments for property rights are not required.
Financing Terms
Financing terms have an effect on transaction price, when those terms are either favorable of
detrimental to the buyer or seller (non-market-level terms). Three of the sales was a cash
transaction, and one involved market-level financing; no adjustments necessary.
63
Conditions of Sale
Conditions of sale reflect the motivations of the buyer and the seller. The conditions of sale
significantly affect transaction prices. For instance, a sale may be transacted at a below-market
price if the seller needs cash in a hurry.
The conditions of sale for Sale Nos.1, 2, 3, and 4 were typical transactions. No adjustments
were made.
Date of Sale
Date of sale (market condition) refers to the changes within a market over a period of time. An
examination of paired sales comparables is used to isolate a market derived adjustment for any
changes in market condition. Typically, a paired sales analysis is utilized to reflect market
condition and "sales and re-sales" of the same properties provide the best indication of the
change in market conditions over time. Thus, the appraiser attempts to find sets of "sales and re-
sales" of the same properties. A time adjustment was made to the land sale.
Physical Characteristics
The adjusted sales price after the above four value factors were allowed for, was used as the
adjusted base price of each sale; an overall (net) adjustment was then made for various physical
characteristics, listed below.
Location
An important element of comparison is for location differences. Elements such as the quality of
surrounding improvements, proximity to freeways and business centers, and convenience to
prime commercial residential neighborhoods, are all influences that affect the location, hence
value, of a commercial property. For example, residential land in a neighborhood where
buildings are priced in the $200-$250/SF range is more valuable than in neighborhoods where
buildings are in the $100-$150/SF range. Likewise, differences in office or retail rents can filter
down to differences in commercial land values. By examining these pertinent relationships in the
neighborhoods surrounding the various land sales data, we were able to abstract differences as
compared to those same characteristics in the subject neighborhood.
In the case of the subject property, location characteristics are responsible for disparities in price;
this condition is caused by varying degrees of desirability based on commercial possibilities,
traffic counts, freeway access, visibility and other factors. While only one of the comparables is
from the immediate area of the subject, the variance in location is offset by the subjects freeway
business appeal and the comparable sales suburban appeal. Location adjustments are, of
necessity, quite subjective. Comp 3 is inferior in location to subject. Adjustment was made to
reflect the differences.
64
Topography
This compares the surface features of the subject with each comparable. Generally, flat or level
surfaces are considered superior to those which slope or have hilly terrain. All of the
comparables were mostly level sites, no value adjustments were deemed warranted.
Corner Influence
This compares the situs position, i.e. interior versus corner situs. Corner locations are usually
considered superior to interior lodgments because they have more frontages, more visibility and
can be accessed from more than one direction. In this appraiser's opinion, corner/interior
adjustments are approximately a 5% value difference. The subject is a cul-de-sac site, and three
of the comparable sales are corner sites. No adjustments were made for sale 1, 3, and 4. An
adjustment was made for comp #2 (interior lot).
Access/Utility
This adjustment compares the subject's lot "usefulness"; although the size of one lot may be the
same as another lot, the land with wider frontage allows more exposure to customers. The
subject has similar access/utility to most of the comparables and similar site area. Sales with
slightly inferior utility due to their sizes and lodgement were given appropriate qualitative
adjustments.
Site Area
Land values are generally dependent upon varying combinations of the above factors plus size
with an inverse size relationship existing.
As lot size becomes larger the price per square foot of land decreases, and conversely, as size
decreases, price increases, assuming all sales have similar physical characteristics. There is a
general rule of thumb, that with everything else being equal, larger lots tend to sell for less on a
square foot basis than smaller lots. Adjustments were made for these.
Zoning
As for zoning adjustment, this compares the subject's zoning with each comparable's zoning.
Generally, commercial land is considered more valuable than industrial land. The more versatile
the zoning (the more uses permitted), the more valuable.
In regards to zoning, the subject has a zoning designation of CH All comparable sales are zoned
for commercial uses. The zoning is identical for all four sales. It is considered to have some
value benefit over the subject or the other comparable sales. No adjustments were made.
65
Land Value Conclusion:
The sales used for determination of an estimated market value of the subject site by the sales
comparison method. The properties utilized are considered land sales or were equated to Land
Sales at the time of sale. The sites are of varying size, with differences as to location, utility, and
other factors, but as such they are felt to be supportive to establish the square foot indications of
value for the subject. Adjustments were made to the sales for financing, real property rights
conveyed, sale conditions, and date of sale. This new base figure was then adjusted for
differences in topography, corner influence, location, lot size, utility/access, and zoning.
In this appraisal, location aspects and market conditions are very important factors which
considerably affect a property's value. Thus, the key point is that we utilize the comparables
which are located in the subject's immediate area or market area, recently sold, and comparables
which are similar to the subject property in use/utility characteristics.
In the units of comparison, price per square foot, which is an indicator of value which compares
the physical aspects of the comparable sales, was used in our analysis. This is particularly
relevant when the comparable sales are physically similar. Differences in size, frontage, zoning,
location, market condition, and overall utility will cause variance in this measure.
Relative comparison analysis is the study of the relationship indicated by market data without
recourse to quantification. This technique is used since it reflects the imperfect nature of real
estate markets. This method was utilized in the sales comparison approach due to the wide
fluctuation of price levels in the subject market area.
Conclusion
The comparable sales indicate a quantitative unadjusted range of $5.41 to $11.08 per square foot
(new base), before adjustments for physical characteristics. The unit value indications,
unadjusted for physical characteristics and derived from the comparable sales can be reconciled
into a single value indication by arranging the sales in an array relative to the subject.
Comparable Sale Adjusted Base Net Adjustment Adjusted Price/SF

Price/SF
Sale No. 1 $5.41 -2% $4.05
Sale No. 2 $9.94 -40% $5.96
Sale No. 3 $10.08 -30% $7.05
Sale No. 4 $11.08 -35% $7.20
66
Sales which are similar in most respects to the subject, and which therefore require the smallest
overall (net) adjustment, are considered the best value indicators. Sales requiring large overall
adjustments or large numbers of adjustments are given less credence, since they do not closely
resemble the subject in most respects. In this analysis, all comparables are considered the best
overall indicator.
One method used to indicate the value is the weighted mean value. Weighing is a technique used
to rate data according to their reliability relative to the subject or their similarity to the subject
property. The non-weighted mean indication of value from all four comparable properties is
$6.07/SF.
Sale No. Weighted x Adjusted Price/SF = Value Contribution

Percentage
1 30% x $4.05 = $1.22
2 25% x $5.96 = $1.49
3 15% x $7.05 = $1.06
4 30% x $7.20 = $2.16
Indicated value of the subject land / SF: $5.93
The weighted mean value of the four sales was calculated as $5.93 per square foot. The Market
Value of the subject, after consideration of all of the above value factors, is estimated to be $6.00
per square foot (rounded).
LAND VALUE CONCLUSION

Land Area (SF) x Price / SF = Indicated Value
508,345 x $6.00 = $3,050,070
Rounded To: $3,000,000
67
FINAL RECONCILIATION
The subject property is uniquely located adjacent to Highway 41 junction and central freeway
businesses located at the Freeway 5.. The subject 11.67 acres is a large one parcel which added
together form a large site ready for development. The value in the site is combined with its
location and the efforts of the owners to prepare the site for future development. While the site
is scheduled to be subdivided into smaller parcels ready for development along with associated
costs the current estimate of value is an “as is” value of the whole. The combined estimated
value of the subject as a whole exceeds the original purchase price of the separate parcels.
After giving consideration to all the valuation analysis it is the appraiser’s opinion that the
market value of the subject, in Fee Simple Interest, on October 22, 2006 is:
Estimated Market Value of the Fee Simple Interest “As-Is”

(THREE MILLION DOLLARS)
$3,000,000
68
ADDENDUM
69
70
71

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APPRAISAL REPORT

AN EXISTING R.V. PARK WITH COMMERCIAL RAW LAND

33000 CYRIL PLACE

Prepared Exclusively For:

OCTOBER 22, 2006

Reference: Appraisal of Real Property located at:

This is a Complete Appraisal. A Complete Appraisal is the result of an appraisal assignment in

Estimated Market Value of the Fee Simple Interest

SUBJECT PHOTOGRAPHS ......................................................................................................3

SUMMARY OF SALIENT FACTS............................................................................................7

MARKET VALUE DEFINITION ............................................................................................11

PREMISES, ASSUMPTIONS AND LIMITING CONDITIONS ..............................................12

REGIONAL DATA ..................................................................................................................17

KETTLEMAN CITY PROFILE ...............................................................................................30

ASSESSORS DATA / LEGAL DESCRIPTION .......................................................................36

HIGHEST AND BEST USE .....................................................................................................49

LAND SALES COMPARISON APPROACH ..........................................................................54

COMPARABLE LAND SALES MAP AND DESCRIPTIONS ................................................55

COMMENTS ON LAND SALES COMPARABLES ...............................................................60

LAND SALES ADJUSTMENT GRID......................................................................................62

LAND VALUE CONCLUSION ...............................................................................................66

Stories: N/A % Vacant: N/A

4. My compensation is not contingent upon the reporting of a predetermined value or

7. G Randall Chase, Certified General Appraiser AG004418 has provided significant

October 22, 2006

Paul Chua Randall Chase

Effective Date of Valuation

Property Rights Appraised

The term "Market Value" as used in this report is defined as follows:

1. Buyer and seller are typically motivated;

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

4. Payment is made in terms of cash in U.S. dollars or in terms of financial

5. Ownership and management are assumed to be competent and in responsible hands.

6. No responsibility beyond those reasonably assumed for matters of a legal nature is

7. Information identified as being furnished or prepared by others is believed to be reliable,

II. APPRAISER COMPETENCY

III. APPRAISER INDEPENDENCE

1. Licensed (Full or Provisional): Appraisals of non-complex one-to-four residential units

2. Certified-Residential: Appraisals of 1 to 4 unit residential transactions without regard

3. CERTIFIED-GENERAL: Appraisals of all real estate transactions without regard to

Community Profile - 2003

LOCATION: Avenal, incorporated September

Typical Commercial Property Tax 1.2% annual

HOUSING AVAILABILITY, PRICES AND RENTALS:

Market Facts, Inc.

Ruiz Food Products, Inc.

Warnock Food Products

Mercy Medical Center Merced

Moore Technologies, Inc. is one of the world's leading suppliers of Semiconductor

Moore Technologies, Inc.

Guy Chaddock & Co.

INCOME AND SALES

Total taxable sales, 1999 ($ mill.) 30,767.8

Avg. earnings per job, 1998 26,856.35956

HOUSING AND CONSTRUCTION

Housing authorizations, 1999 (valuation

Value of production, 1999 ($ mill.) 14,463.2

Source: California Department of Finance

Nonagricultural wage & salary

Value-Added Food Processing

Computer, Data Processing, Call Centers and Fulfillment Centers

Software and Hardware Development