HomeMy WebLinkAbout2026-03-09 WCWD PacketUKIAH VALLEY
WATER AUTHORITY
Willow County Water District
Regular Meeting
AGENDA
151 Laws Avenue ♦ Ukiah, CA 95482
To participate or view the virtual meeting, go to the following link: htos://us06web.zoom. us4l84775413780
Or you can call in using your telephone only:
• Call1499-444-9171
• Enter the Access Code: 847 7641 3760
March 9, 2026 - 5:00 PM
1. CALL TO ORDER AND ROLL CALL
2. APPROVAL OF MINUTES
2.a. December 8, 2025
Recommended Action: Approve the Minutes of December 8, 2025.
Attachments:
1. 2025-12-08 Willow Draft Minutes
3. AUDIENCE COMMENTS ON NON -AGENDA ITEMS
The Ukiah Valley Water Authority (UVWA) - Willow County Water District members welcome input from the audience. In order
for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per
subject. The Brown Act regulations do not allow action to be taken on audience comments on non -agenda items. If you wish to
submit written comments, please provide information to the UVWA-Willow, located at 151 Laws Avenue, Ukiah, CA, 95482.
4. FINANCIAL REPORTS
4.a. Balance Sheet July 2025 - January 2026
Attachments:
1. Balance_Sheet_July_-_January_2026[1]
4.b. YTD Budget Report: July 2025 — January 2026
4.c. Check the Register in January 2026
Attachments:
1. Check Register Jan 2026
4.d. Check Register December 2025
Attachments:
1. Check Register December 2025
5. NEW BUSINESS
Page 1 of 2
5.a. Rotation of Officers for 2026
Recommended Action: Appoint a Chairperson to the WCWD Board for 2026.
6. UNFINISHED BUSINESS
6.a. Appraisal for 151 Laws Avenue (Willow Water District Building).
Attachments:
1. Willow Appraisal 151 Laws Avenue
6.b. Term Sheet, Willow Office Building, 11-7-25.
Attachments:
1. Term Sheet, Willow Office Building, 11-7-25
7. ADMINISTRATIVE AND OPERATIONAL REPORTS
7.a. Report on Eel -Russian Project Authority (ERPA) & Inland Water and Power Commission
(IWPC)
7.b. Report on Local Water Distict Projects
7.c. Report on Ukiah Valley Water Authority (UVWA)
8. COMMITTEE MEMBER ANNOUNCEMENTS AND REPORTS
8.a. FORM 700
Recommended Action: Fill out and return to Mendocino County Clerk - Recorder.
Attachments:
1. form_700_2025
8.b. W-9 FORM
Recommended Action: Fill out and Return to AP at the City of Ukiah.
Attachments:
1. BLANK W-9 FORM.pdf
9. SET NEXT MEETING DATE
9.a. The Next Regular Meeting is Scheduled for April 13, 2026, Unless There is No New Business
to Come Before the Board.
10. ADJOURNMENT
Please be advised that the Ukiah Valley Water Authority (UVWA)-Willow County Water District (WCWD) needs to be notified 24 hours In
advance of a meeting if any specific accommodations or Interpreter services are needed in order for you to attend. UVWA-WCWD complies
with ADA requirements and will attempt to reasonably accommodate Individuals with disabilities upon request. Materials related to an Item on
this Agenda submitted to the UVWA-WCWD Board Members after distribution of the agenda packet are available for public Inspection at the
front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00
am to 5:00 pm. Any handouts or presentation materials from the public must be submitted to the Berk 48 hours in advance of the meeting; for
handouts, please Include 10 copies.
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at
the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California; and at 151 Laws Ave., Ukiah, California;
not less than 24 hours prior to the meeting set forth on this agenda.
Kim Saylor, Deputy City Clerk
Mardi 5, 2026
Page 2 of 2
UKIAH VALLEY
WATER AUTHORITY
WILLOW COUNTY WATER DISTRICT MINUTES
Regular Meeting
WATER DISTRICT OFFICE CONFERENCE ROOM
151 Laws Avenue, Ukiah, CA 95482
Virtual Meeting Link: https://us06web.zoom, us/il84512727220,
Ukiah, CA 95482
December 8, 2025
5:00 p.m.
1. CALL TO ORDER AND ROLL CALL
The Willow County Water District (WCWD) met at a Regular Meeting on December 8, 2025, having
been legally noticed on December 5, 2025. The meeting was held in person and virtually at the
following link: hops:llus06web.zoom. usN84512727220. Chair Nevill called the meeting to order at
5:00 p.m. Roll was taken with the following Members Present: Devin Gordon, Mike Hildreth, and
Gary Nevill; ABSENT: Ross LaRue, one seat is currently vacant. Staff Present: Jared Walker,
WCWD General Manager; and Kim Saylor, Ukiah City Deputy Clerk.
CHAIR NEVILL PRESIDING.
2. APPROVAL OF MINUTES
a. Approval of the Minutes for the November 10, 2025, Regular Meeting.
No public comments were received.
Motion/Second: Gordon/Hildreth to approve the minutes for the November 10, 2025, Regular
Meeting, as submitted. Motion carried by the following roll call votes: AYES: Gordon, Hildreth, and
Chair Nevill NOES: None. ABSENT: LaRue. ABSTAIN: None.
3. AUDIENCE COMMENTS ON NON -AGENDA ITEMS
No public comments were received.
4. NEW BUSINESS
None.
5. UNFINISHED BUSINESS
5.a. Consideration/Approval of Proposal of Terms by City of Ukiah for Purchase of
Certain District Capital Assets:
a. Term Sheet Willow Office Building 11-7-25
Member Consensus to continue this item to the next scheduled meeting.
6. ADMINISTRATIVE AND OPERATIONAL REPORT
Page 1 of 2
Willow Water District Minutes for December 8, 2025 Continued:
a. ERPA — December Meeting scheduled for December 1, 2025
Presenter: Jared Walker, WCWD General Manager.
No further updates.
b. Water Districts' Projects
Presenter: Jared Walker, WCWD General Manager.
Millview WestPac is finishing up meter change outs.
Districts are winding down small projects through the end of the year.
c. Ukiah Valley Water Authority (UVWA)
Presenter: Jared Walker, WCWD General Manager.
On December 4, 2025, the board voted on proposed rate increases for City of Ukiah, Millview,
Willow and Redwood Valley.
The application to SAFER has been completed and submitted to the state.
7. COMMITTEE MEMBER ANNOUNCEMENTS AND REPORTS
No reports were given.
8. SET NEXT MEETING DATE
January 12, 2025 at 5:00pm.
9. ADJOURNMENT
There being no further business, the meeting adjourned at 5:20 p.m.
Kim Saylor, Deputy Clerk
Page 2 of 2
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Term Sheet: Lease -Purchase of Willow Office Building
151 Laws Avenue, Ukiah, California
This term sheet sets forth the principal business terms under which the Buyer (Tenant) and
Seller (Landlord) would structure a lease -purchase arrangement for the Willow Office
Building. It is non -binding (except for those provisions explicitly stated to be binding).
1. Parties
• Landlord / Seller: Willow (or its designated entity)
Tenant / Buyer: City of Ukiah (the "City")
2. Property
The entire building known as the Willow Office Building, located at 151 Laws
Avenue, Ukiah, California (the "Property").
3. Lease -Purchase Structure
Lease Term: Five (5) years.
• Principal Amount: $499,999, subject to an appraisal conducted prior to the start of
the lease term. If the appraised value is less than $499,999, the appraised value will
serve as the purchase price and the basis for calculating principal payments.
Interest Rate: 4.0% per annum, fixed. Based on recent commercial real estate
financing data for Northern California markets, typical rates for similar office
properties range from 4% to 6.25% depending on credit quality, collateral, and term.
The 4% rate represents a fair and favorable rate for an intergovernmental
transaction.
• Payment Structure: Monthly lease payments shall be structured to mirror a fully
amortizing loan, with each payment including moth principal and interest
components.
The principal balance shall be reduced over the five-year term such that the
total principal paid equals $499,999 by the end of the fifth year.
A detailed amortization schedule will be attached as an exhibit to the final
agreement, showing the monthly allocation of principal and interest.
• Payment Timing: Payments are due on the first (1st) day of each month.
• Legal Framework: This lease -purchase structure is established to allow the City
and the District to engage in a structured owner -financed transaction consistent
with California Government Code H 37350.5, 54241, and related constitutional
provisions permitting intergovernmental transfers and lease -purchase
arrangements for public purposes. While formatted as a lease, this arrangement
functions as an owner -carried note, with the District serving as the lender and the
City as the purchaser over the lease term.
4. Bargain Purchase Option
Option to Purchase: At the end of the five-year term, the City shall have the option
to acquire title to the Property for $1.00 (one dollar).
Early Purchase Option: The City may terminate the lease at any time during the
five-year term and elect to purchase the Property for $500,000 or another mutually
agreed price, based on the appraisal conducted before the commencement of the
lease. If the appraised value is lower than $500,000, the purchase price shall be that
appraised amount, less the total principal portion of lease payments already made.
Exercise of Option: The City shall provide written notice to exercise the purchase
option no later than ninety (90) days prior to the end of the lease term, or upon early
termination if exercising the early purchase option.
• Closing: Closing shall occur within sixty (60) days of exercising the option. Upon
payment of the applicable purchase price (or final $1.00 at term) and satisfaction of
all lease -purchase obligations, title shall transfer to the City.
• Lease Cancellation: If the City terminates the lease before completion without
exercising the purchase option, all prior lease payments shall be deemed rental
payments and non-refundable, representing fair compensation for the District's
opportunity costs and the City's use of the Property. The District shall retain full title
and ownership of the Property, with the right to lease or sell it thereafter.
S. Maintenance & Repairs
• City (Tenant): Responsible for all maintenance, repairs, and improvements to the
Property during the lease term. The City reserves the right to make capital
improvements at its discretion.
• Landlord: Shall have no maintenance or repair responsibilities during the lease
term.
6. Insurance, Taxes & Operating Costs
• The City shall maintain general liability insurance naming the Landlord as an
additional insured.
The Landlord shall maintain property insurance forthe building untiltitle transfers.
• The City shall pay utilities and routine operating costs.
7. Miscellaneous Provisions
• Governing Law: California law governs.
• Subletting: The City may sublet all or part of the Property to another governmental
agency, nonprofit, or compatible tenant, provided that such sublease does not
violate applicable zoning or legal restrictions.
• Binding Provisions: This term sheet is non -binding except for (i) confidentiality, (ii)
exclusivity (if agreed), and (iii) any expressly binding fee or reimbursement terms.
• Costs & Fees: Each party pays its own legal, appraisal, due diligence, and closing
costs, unless otherwise agreed.
• Escrow / Closing Agent: To be mutually selected.
• Survival: Post -closing obligations (e.g., warranties or indemnities) to survive for a
defined period.
For Discussion Purposes Only
Landlord/Seller: Date:
Tenant/Buyer: Date:
Exhibit A: Amortization Schedule
The following is the projected amortization schedule referenced in Section 3, assuming a
principal amount of $499,999 at an interest rate of 4.0% over a five-year term.
Payment
Beginning
Payment
Interest
Principal
Ending
No.
Payment Date
Balance
Amount
Portion
Portion
Balance
1
Month 1
$499,999
$9,208
$1,667
$7,541
$492,458
12
Year 1 End
$413,162
$9,208
$1,377
$7,831
$405,331
24
Year 2 End
$320,210
$9,208
$1,068
$8,140
$312,070
36
Year 3 End
$220,977
$9,208
$737
$8,471
$212,506
48
Year End
$115,254
$9,208
$384
$8,824
$106,430
60
Year 5 End
$8,791
$9,208
$29
$9,179
$0
End of Term
61
(Purchase
$0
$1
$0
$1
$0
Option)
IYLCU. .p.7.7/-
Totals reflect the total payments, interest, and principal paid over the five-year term,
including the $1 bargain purchase option.
Note: Payment amounts and breakdowns are approximate and for illustrative purposes.
Final amortization will be calculated and attached to the executed agreement.
An Appraisal Report
Of
151 Laws Ave
A Single -tenant Office Building
located in
Ukiah, Californ(a
;Effective dote of report: December 09, 2025
Effective date of value: December 05, 2025
for
Maya Simerson
Project Administrator
City of Ukiah
300 Seminary Ave
Ukiah, CA 95482
Keith Sablik, MAI
Certified General Appraiser
203 Photinia Place
Petaluma, CA 94952
(707) 559-5551
December 09, 2025
Maya Simerson
Project Administrator
City of Ukiah
300 Seminary Ave
Ukiah, CA 95482
Re: 151 Laws Ave
Ukiah, CA 95482
Dear Ms. Simerson:
Per your request of November 13, 2025, and as required by the Appraisal Institute's Standards
of Valuation Practice, Standard A, I have made the necessary inspection and analysis to
appraise the above referenced property. The attached report provides essential data and
detailed reasoning employed in reaching my opinion of value.
The purpose of the following report is to develop an opinion of market value of the fee simple
interest in the property, as -improved, as of December 05, 2025. The intended use of the report
is for negotiations in a potential purchase of the property. The intended user and client of the
report is City of Ukiah. This report is not intended for any other use or user.
The property being appraised is an 20,940-sf (0.48-acre) commercially -zoned parcel improved
with an average quality/appeal, 3,974-sf, single -tenant office building located within an
unincorporated portion of the city of Ukiah, in Mendocino County, California.
The value reported is qualified by certain definitions, limiting conditions, and certifications that
are set forth in the attached report. The analysis contained in the report that follows is
presented as a summary Appraisal Report.
Based on my analysis, the opinion of market value of the subject property, as set forth,
documented, and qualified in the attached report under conditions prevailing on December 05,
2025, is:
FIVE HUNDRED THOUSAND DOLLARS
It has been a pleasure doing business with you. Should you have any questions, please do not
hesitate to contact me at (707) 559-5551.
Respectfully submitted,
�4
Keith Sablik, MAI
Certified General Appraisal
CA Lic #AG008653
Keith Sablik, MAI: 161 Laws Ave
TABLE OF CONTENTS
SUMMARY OF SALIENT FACTS
3
PURPOSE OF THE APPRAISAL
5
INTENDED USE and USER
5
INTEREST APPRAISED
5
SCOPE OF WORK
6
DEFINITION OF VALUE
7
ASSUMPTIONS AND LIMITING CONDITIONS
8
IDENTIFICATION OF PROPERTY
■ Location
12
■ Statement of Owners hiplProperty History
12
• Legal Description
12
■ Tax and Assessment Data
13
• Marketing and Exposure Time
14
AREA DESCRIPTION
15
CITYINEIGHBORHOOD DESCRIPTION
22
SITE DESCRIPTION
27
■ Zoning and Land Use
29
■ Plat Map
33
IMPROVEMENT DESCRIPTION
34
■ Subject Sketch
35
MARKET ANALYSIS
38
HIGHEST AND BEST USE ANALYSIS
43
■ As -If Vacant
44
• As Improved
45
METHODS OF VALUATION
46
SALES COMPARISON APPROACH
47
■ Income Data and Ratios
57
INCOME APPROACH
58
■ Comparable Lease Analysis
59
■ Expense Analysis
67
• Reconstructed Operating Statement
69
RECONCILIATION
70
CERTIFICATION
71
ADDENDA:
■ Subject Photographs
73
■ Appraiser Qualifications
79
Keith Sabiik, MAI: 151 Laws Ave
PURPOSE OF THE APPRAISAL
The purpose of the appraisal is to estimate the market value of the fee simple interest in the
property described hereinafter, subject to the Limiting Conditions later set forth, as of
December 05, 2025. Evaluation of the property is made as -improved.
This is an Appraisal Report as defined by Standards Rule 2.2 in the Uniform Standards of
Professional Appraisal Practice WSPAP) effective January 01, 2024,
INTENDED USE and USER OF THE APPRAISAL
The intended use of the report is for negotiations in a potential purchase of the property. The
intended user and client of the report is City of Ukiah. This report is not intended for any other
use or user.
INTEREST APPRAISED
The property interest(s) appraised are identified below:
■ A fee simple estate is defined as follows:
Absolute ownership unencumbered by any other interest or estate, subject only to the
limitations imposed by the governmental powers of taxation, eminent domain, police
power, and escheat.
❑ A leased fee estate is defined as follows:
An ownership interest held by a landlord with the right of use and occupancy conveyed by
lease to others. The rights of the lessor (the leased fee owner) and the leased fee are
specified by contract terms contained within the lease.
A leasehold estate is defined as follows:
The interest held by the lessee (the tenant or renter) through a lease conveying the rights
of use and occupancy for a stated term under certain conditions.
❑ Personal property is defined as follows:
Identifiable portable and tangible objects that are considered by the general public to be
"personal', e.g., furnishings, artwork, antiques, gems and jewelry, collectibles, machinery
and equipment; all property that is not classified as real estate. Personal property includes
movable items that are not permanently affixed to, and part of, the real estate.
Taken from the Dictionary of Real Estate Appraisal, 41' Edition, 2002
Keith Sablik, MAI: 151 Laws Ave
SCOPE OF WORK
The following steps were followed in arriving at the estimate of value included in the appraisal
report of the subject property:
• After receiving the assignment a preliminary search of all available
resources was made to determine market trends. A study was made of
the area, community, and neighborhood and other significant factors
pertinent to the subject property.
A physical inspection of the property was performed on December 05,
2025. Although due diligence was exercised while at the subject
property, the appraiser is not an expert in such matters as hazardous
waste, soil contamination, etc., and no warranty is given or implied as to
these or other elements outside of analysis of market data. inspections
by various professionals within these fields may be recommended with
the final estimate of market value subject to their findings.
• The appraiser collected data from a variety of sources, including the
property owner, owner's representative, BAREiS (North Bay Multiple
Listing Service), county assessor's office, real estate brokers, and/or the
appraiser's own files.
■ The highest and best use was then determined considering zoning, the
general plan, economic considerations, and surrounding land use.
• A more detailed review of the collected data was then performed with
the most relevant factors extracted and considered. Comparable
properties were examined and, when possible, confirmed with parties
involved with the transactions. Additionally, a physical inspection of the
front -exteriors of the properties was also performed. All appropriate
data was then analyzed to arrive at a conclusion of value.
■ The appraisal report was prepared in accordance with standards
dictated by the Appraisal Foundation in the Uniform Standards of
Professional Appraisal Practices (USPAP), as well as in accordance
with Title Xi of FIRREA. The intent of the report is to lead the reader
systematically through the appraisal process leading to conclusions
similar to those of the appraiser.
• The report is intended to comply with 1) Interagency Appraisal and
Evaluation Guidelines; and 2) USPAP.
■ The appraiser did not take into consideration any prohibited basis, such
as race, color, religion, sex, familial status or national origin, in
developing and reporting the appraisal.
■ Delivery of the appraisal report to the client constituted the completion
of the assignment.
Keith Sablik, MAI: 151 Laws Ave
DEFINITION OF VALUE
Market Value' is defined as follows:
Market value means 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 and knowledgeably, and assuming the price is not affected by undue stimulus,
Implicit in this definition is the consummation of a sale as of a specified date and the passing
of title from seller to buyer under conditions whereby:
(1) Buyer and seller are typically motivated;
(2) Both parties are well informed or well advised, and acting in what they
consider their own best interests;
(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; and
(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.
1 Code of Federal Regulations, revised January 01, 20W Title 42-Banks and Banking, Chapter V-Office of Thrift Supervision, Department of the
Treasury, Part -(Appraisals) 564.2g, including verbatim the grammatical and punctuation errors.
Keith Sablik, MAI: 151 Laws Ave
ASSUMPTIONS AND LIMITING CONDITIONS
Assumptions and Limitations of Appraisal
This appraisal is for no other purpose than property valuation, and the appraiser is neither
qualified nor attempting to go beyond that narrow scope. The reader should be aware that
there are also inherent limitations to the accuracy of the information and analyses contained
in the appraisal. Before making any decisions based on the information and analyses
contained in this report, it is important to read this entire section to understand these
limitations.
Appraisal is Not a Survey
It is assumed that the utilization of the land improvements is within the boundaries of
the property lines of the property described and that there are not encroachments or
easements unless noted within the report.
No survey of the property has been made by the appraiser and no responsibility is assumed
in connection with such matters. Any maps, plat maps, or drawings reproduced and included
in this report are intended only for the purpose of showing area relationships. The reliability
of the information contained on any such map or drawing is assumed by the appraiser and
cannot be guaranteed to be accurate. A surveyor should be consulted if there are any
concerns about boundaries, setbacks, encroachments, easements, or other survey matters.
Legal Aspects of the Appraisal
No responsibility is assumed for matters of a legal nature that affect title to the property,
boundaries, encumbrances, easements, or other defects of title. The appraiser was not
provided with an abstract of title for the property being appraised and the appraiser has not
made an examination of one.
It is assumed that the real property is in full compliance with all applicable federal, state,
and local environmental regulations and laws unless non-compliance is stated, A
comprehensive examination of laws and regulations affecting the subject property was not
performed for this appraisal.
It is assumed that all applicable zoning, use regulations, and restrictions have been complied
with, unless stated otherwise. Information and analyses shown in this report concerning these
items is based only on a preliminary investigation. Any questions should be addressed to
local zoning or land use officials or other qualified individuals.
It is assumed that all required licenses, permits, or other necessary documentation from the
appropriate authority has been or can be obtained or renewed for any use on which the value
estimate is based. If any questions arise concerning any area stated in this paragraph, a
qualified individual should be consulted.
All mortgages, liens, encumbrances, leases, and servitude have been disregarded unless so
stated within the report. The property is appraised as though under responsible ownership
and competent management.
Keith Sablik, MAI: 151 Laws Ave
ASSUMPTIONS AND LIMITING CONDITIONS
Use and Extent of This Appraisal
The appraiser will not be required to give testimony or appear in court for any reason related
to this appraisal unless prior arrangements have been made.
Possession of this report, or copy thereof, does not presume right of publication. The report
may not be used by any person other than the party to whom it is addressed without the
prior written consent of the appraiser, and only with proper written approval from the
appraiser and only in its entirety.
Neither all nor any part of the contents of this report, or copy hereof, shall be conveyed or
utilized for advertising purposes, public relations, new sales, or any other media without the
prior written consent of the appraiser.
Use of this report is subject to the requirement of the Appraisal Institute relating to review by
its duly authorized representative.
Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing
general assumptions and general limiting conditions.
Appraisal Is Not an Engineering or Property Inspection Report
No environmental impact studies were provided in conjunction with this report. It is assumed
that there are no hidden or unapparent conditions of the property, sub -soil, or structures that
would render it more or less valuable. No responsibility is assumed for such conditions, or
for the engineering that may be required to discover such factors. Since no engineering
tests were made, no liability is assumed for soil conditions. Sub -surface rights (mineral and
oil) were not considered in making this appraisal.
Wells and septic systems, if any, are assumed to be in good working condition and of
sufficient size and capacity for the stated highest and best use.
The appraiser is not an environmental expert and does not have the expertise necessary
to determine the existence of environmental hazards such as the presence of toxic
wastes, asbestos, or hazardous building material, or any other environmental hazards noted
on the subject or surrounding properties. If the appraiser has any knowledge of any problems
of this nature which would create a significant problem, they are disclosed in this report.
Nondisclosure should not, however, be taken as an indication that such a problem does not
exist; an expert in the field should be consulted if any interested party has questions on
environmental factors.
Keith Sablik, MAI. 151 Laws Ave
ASSUMPTIONS AND LIMITING CONDITIONS
No chemical or scientific tests were performed by the appraiser on the subject property; it
is assumed that the air, water, ground, and general environment associated with the
property, present no physical or health hazard of any kind unless otherwise noted in the body
of the appraisal report. It is further assumed that the subject does not contain any type of
dump site and that there are no underground tanks leaking toxic or hazardous chemicals
into the groundwater or environment unless otherwise noted in the report.
Appraisal Is Made Under Conditions of Uncertainty with Limited Data
As evident from the limitations presented, above, this appraisal has been performed with a
limited amount of data. Data limitations result from a lack of certain areas of expertise by the
appraiser, the inability of the appraiser to view certain portions of the property, the inherent
limitations of relying upon information provided by others, etc.
Before relying on any statement made in this appraisal report, concerned parties should
contact the appraiser for the exact extent of data collection on any point which they believe
to be important to decision making.
Information provided by local sources, such as government agencies, financial institutions,
accountants, attorneys, and others, is assumed to be true, correct, and reliable. No
responsibility for the accuracy of such information is assumed by the appraiser.
The comparable sales data relied upon in the appraisal is believed to be from reliable
sources. Though all the comparables were examined, it was not possible to inspect them all
in detail. The value conclusions are subject to the accuracy of said data.
Engineering analysis of the subject property was neither provided nor made as a part of this
appraisal report.
All values shown in the appraisal report projections are based on the appraiser's analysis as
of the date of the appraisal. The values may not be valid in other time periods or as
conditions change.
Since projected mathematical models and other projections are based on estimates and
assumptions which are inherently subject to uncertainty and variation depending upon
evolving events, they are not represented as results that will actually be achieved.
This appraisal is an estimate of value based on an analysis of information known to the
appraiser at the time the appraisal was made. The appraiser does not assume any
responsibility for incorrect analysis because of incorrect or incomplete information.
Opinions and estimates expressed herein represent the appraiser's best judgment but should
not be construed as advice or recommendation to act.
Keith Sablik, MAI: 151 Laws Ave
ASSUMPTIONS AND LIMITING CONDITIONS
Appraisal Report Limitations
Appraisal reports are technical documents addressed to the specific technical needs of the
client. Casual readers should be cautioned about the limitations and possible
misinterpretation of the information contained in this report and further understand that this
report does not contain all of the information gleaned by the appraiser concerning the subject
property or the real estate market. While no factors believed to be significant were knowingly
withheld, the possibility exists that the appraiser may have information of significance to
others; due to the appraiser's limited acquaintance of the property and the appraiser's
specifically limited expertise, such information may not seem to be of import to the appraiser.
The appraiser should be contacted with any questions before this report is relied upon as a
basis for decision making.
Keith Sablik, MAI: 151 Laws Ave
IDENTIFICATION OF PROPERTY
Location
The subject property is located in the northern portion of the State of California, within the
south-central portion of the County of Mendocino, in an unincorporated, southern portion of
the City of Ukiah. Specifically, the property is situated west of US 101, on the south side of
Laws Ave, between S State St to the east and S Dora St to the west.
The subject is identified as assessor's parcel number 003-42047 and is commonly referenced
as 151 Laws Ave, Ukiah, CA.
Statement of Ownership/Property History
A preliminary title report was not provided. The appraisal is made under the extraordinary
assumption no adverse conditions are to be found in a current title report. Per public records
interest in the property is vested in:
Willow County Water District
The property was purchased by the current owner on March 01, 1995 for $130,000, via
document #95-02923,
The City of Ukiah has submitted an offer to purchase the property via a lease -purchase
agreement, in the amount of $499,999. The transaction is between the municipality and a
community water district that is being folded into the city jurisdiction.
The property was not listed on the market prior to the current offer being made.
According to available records and data sources, there has been no other market activity or
transfer of the property in the past five years.
Legal Description
NIA
Keith Sablik, MAI: 151 Laws Ave
IDENTIFICATION OF PROPERTY
Tax and Assessment Data
As result of the passage of California Proposition 13 (or the Jarvis -Gann Initiative) in 1978.
real property taxes in the State of California are limited to 1% of market value, based upon
the assessor's market value estimate for the 1975 base year; unless there is a transfer of
ownership, new construction, or the property is leased on a long-term basis. Whenever
any of the foregoing occurs, the property is reassessed at full market value. If there is no
reassessment, the assessed value is increased at 2% annually. Proposition 13 limits the
annual real property taxes to 1% of the assessed value plus an amortized amount for voter
approved bonded indebtedness.
The property resides within tax rate area 154154. Due to its municipal ownership, the property
is not subject to current taxes. If it had been so, a tax rate of 1.210% plus direct charges of
approximately $300 are estimated based upon data obtained from nearby properties.
Keith Sabllik, MAI: 151 Laws Ave
IDENTIFICATION OF PROPERTY
Marketing Period and Exposure Time
The following definitions are taken from the Dictionary of Real Estate Appraisal, 40, Edition,
2002.
Marketing Period
1. The time it takes an interest in real property to sell on the market sub-sequent to the
date of an appraisal.
2. Reasonable marketing period is an estimate of the amount of time it might take to sell
an interest in real property at its estimated market value during the period immediately
after the effective date of the appraisal; the anticipated time required to expose the
property to a pool of prospective purchasers and to allow appropriate time for
negotiation, the exercise of due diligence, and the consummation of a sale at a price
supportable by concurrent market conditions.
Assumptions are made that the property will be marketed through professionals experienced
with the particular type of property and that all normal marketing tools will be employed during
the listing period. Additionally, the property will be offered for sale at a reasonable value
relative to its market value and that neither buyer nor seller are under any duress to execute
the sale.
Exposure Time
1. The time a property remains on the market.
2. The estimated length of time the property interest being appraised would have been
offered on the market prior to the hypothetical consummation of a sale at market value
on the effective date of the appraisal; a retrospective estimate based on an analysis
of past events assuming a competitive and open market. Exposure time is always
presumed to occur prior to the effective date of the appraisal. The overall concept
of reasonable exposure encompasses not only adequate, sufficient and reasonable
time but also adequate, sufficient and reasonable effort. Exposure time is different for
various types of real estate and value ranges and under various market conditions.
Listing periods for the five properties utilized in the sales comparison approach ranged from
16 days up to 132 days, with an average time of 74 days or approximately 2.5 months on the
market. A broader review of the market finds most properties in the region selling within a 3-
to-6-month period.
Based upon this analysis, the exposure time for the property at the stated opinion of value is
estimated between 3 and 6 months. Anticipating no major changes in market conditions over
the next year, a similar time frame is estimated for the marketing period.
Keith Sablik, MAI: 151 Laws Ave
AREA DESCRIPTION
Geography and Economics of
Mendocino County
Mendocino County is situated in the
northwest coastal region of California and
is bounded by Humboldt and Trinity
Counties to the north; Tehama, Glenn and
Lake Counties to the east; Sonoma County
to the south; and the Pacific Ocean to the
west. Mendocino County is 100 miles north
of San Francisco on the U.S. Highway 101
corridor, and covers an area of
approximately 3,878 square miles. It ranks
151h in size compared to the 58 counties in
the State of California, but falls to 371h rank
when relative populations of these counties
are compared. There are only four
incorporated cities (towns) in the county, in
order of size: Ukiah, Fort Bragg, Willits, and
Point Arena. Approximately, 70% of the
population lives in the unincorporated
areas of the county,
The headwaters of the Russian River are located in Mendocino County, and its rich
bottomland supports many small and mostly organic farms that grow fruits and vegetables,
while ranches raise sheep and cattle. Mendocino County offers a wide variety of topography,
climate, and vegetation; from tidal flatlands of the coastline to rugged mountain terrain, with a
number of fertile valleys and a large plain. The climate is considered mild with lows rarely
dropping below freezing in the winter and highs in the summer average mid to high 90s.
The Coastal Mountain Range presents a significant geographic barrier, and divides the
coastal and interior regions of the county. On the eastern side of the Coastal Mountain Range
is Mendocino County's interior, which consists of a series of deep valleys running north and
south and contains the bulk of the county's population.
Ukiah is the largest city and County seat. Mendocino College, with a 127-acre permanent
campus, and an enrollment of +/- 5,000 students, is located 3 miles north of downtown Ukiah,
and is a major employer for the area. Just east of Ukiah in the community of Talmage, is the
488-acre 'City of Ten Thousand Buddhas', one of the nation's largest Buddhist
universities/colonies. It is situated at the site of the former Mendocino State hospital.
Keith Sablik, MAI: 161 Laws Ave
AREA DESCRIPTION
The economic base of the region has been in transition for decades. The following table
indicates some of the largest employers in Mendocino County (ranked by number of full-time
employees):
County of Mendocino
Ukiah Unified School District
Mendocino College
Georgia Pacific West
Productive People Empl, Services
Retech
Mendocino Co. Office of Education
Rainbow Construction
Harwood Products Inc.
Mendocino Coast Hospital
City of Ukiah
Savings Bank of Mendocino County
AMBD
Howard Frank R. Memorial hospital
Fetzer Vineyards
Source: Upstate California Economic Development Council
Source: www.cityofukiah com
The economy of Mendocino County has historically been centered on agriculture and resource
extraction -- primarily timber and fishing. However, both the timber and fishing industries have
been in decline for several decades due to the over -extraction and consequent dwindling of
these resources. Of the three dozen former mills in the county, only a handful remain open,
and these are mainly remanufacturing mills that that turn sawn logs into molding and other
products. The timber and fishing industries have been replaced with tourism within the county.
However, it is a cyclical industry that is dependent on worldwide economic conditions. Prior
to the recession, the Transient Occupancy Tax (TOT) collections for the county peaked in
2007-08 at $3,846,841. By 2009-10, they had fallen to $3,255,978 as the full impact of the
recession took hold. Subsequent years saw near -steady growth until 2022-23, when TOT
began to decline, leading to a 2023-24 figure of $8,145,097 (Mendocino County Tax
Collector).
Other visitor -serving businesses such as restaurants, gas stations, and entertainment venues
are also trending upward. Indian casinos are another growing visitor -serving service. There
are currently four along State Route 101, in or near Hopland, Redwood Valley, Willits and
Laytonville.
Keith Sabi ik, MAI: 151 Laws Ave
AREA DESCRIPTION
The table below reflects the change in average monthly industry -occupancy employment
levels in the county between 2010 and 2020:
Mendocino County Employment by Industry
Industry 2014 2015 2014 2017 2011 2019 2020 2021 2022 2023 2024
Farm
1,5v
1,460
1.060
1.180
1,230
1.200
1,140
1,530
1,400
1.410
1,390
rdvsnp, f_ugM and Can Won
1.320
1,330
1,200
1,560
1,630
1,600
1.420
1,550
I'm
1,630
t,760
maruWW"
2.490
2,520
2,550
2.460
2.3W
2,290
2,130
2.500
2,510
Z400
2,220
Wndesale Trade
830
730
810
800
780
740
720
750
710
690
590
RelalTrade
4,380
4,620
1 4.750
4.760
4.960
4,830
1 4,330
4,710
4,500
4,370
4,110
Trarnpataft� Wardaudrg R UffAes
M
680
7l0
760
770
000
750
000
ex
a
930
Inhtmaim
270
2d0
240
240
230
210
200
190
210
210
180
Fm"alAcivitas
1.050
11040
1.030
11070
1.090
1,060
1.020
1,010
920
9B0
920
Pmfeesiond 3 Businm Services
1.650
1,670
1,600
1.740
1,850
1.860
1,790
1.860
1,790
1,970
t,910
Educalmd E Hedt1 Services
5,5T0
5,490
5,720
5,790
SAW
5,890
5,$70
5,590
5,940
6.100
6,580
LdaveRH06PW4
4,230
4150
4.240
4,330
1 4,260
4,320
1 2.970
3,920
4,010
3,950
3,950
0trar Services
T70
780
790
020
I 710
730
$10
600
720
680
710
FederalGoverrawt
260
270
270
260
270
270
290
250
260
250
250
Sue d lacd Geuennmt
6.770
6,070
7.000
7.130
6.800
6.010
6,100
6,310
6.630
6,820
7,030
Tcrud: All lnduArles
31,780
31,910
34170
32,900
32,030
32,010
A040
31,720
3Z010
32,350
32330
% Pdvde
77.9%
77.7%
77.4%
77,5%
78.3%
MA
78.0%
NA
78.5%
1 7&1%
77.6%
% Pd*
22.1%
22.3%
22.6%
22,5%
21.7%
21.9%
22.0%
20.9%
21.5%
1 21.9%
22.4%
Source: Stale of California Employment Development Department
Government employment is the largest single source of employment in the county, followed
by retail trade, leisure/hospitality, and educational/health services. This highlights the shift
away from manufacturing, which was once a major employer in the region. The county's
employment is now focused upon services with the public sector coming in as number one in
employment.
Employment figures declined in all industries between 2019 and 2020, reflecting the on -set of
the Covid-19 pandemic in early 2020 and its devasting impact upon all sectors of
employments, but most notably in Leisure & Hospitality, which was down 31.3%. By 2024.
employment has returned to near pre -pandemic levels.
2023 vs 2024
-1.4%
B.0%
-7.5%
-14.5%
-5.9%
5-7%
-14.3%
-6.1%
-3.0%
7.9%
0.0%
4,4%
-18%
3.1%
0.6%
Keith Sablik, MAI: 151 Laws Ave
AREA DESCRIPTION
The table below reflects the historical labor force totals for Mendocino County since 2003:
Unemployment
Year Labor force Employment Unemployment Rate
2003
45.310
42,190
3,120
6.9%
2004
44,033
41,198
2,835
6.4%
2005
43,926
41,389
2,537
5.8%
2006
43,351
41,097
2,254
5.2%
2007
43,179
40,804
2,375
5.5%
2008
43,287
40,321
2,966
6.9%
2009
43,325
38,878
4,447
10.3%
2010
43,347
38,461
4,886
11.30/6
2011
42,755
38,077
4,678
10.91/0
2012
42,776
38,623
4,153
9.7%
2013
43,497
40,126
3.371
7.7%
2014
41,000
38,160
2,840
6,9%
2015
40,207
37,853
2,354
5.90/0
2016
39,644
37,555
2,089
5.3%
2017
39,628
37,842
1,786
4.5%
2018
39,715
38,151
1,564
3.9%
2019
38.934
37,388
1,546
4.00/6
2020
37,015
33,723
3,292
8.91/0
2021
36.920
34,622
2.298
6.2%
2022
37,183
35,653
1,530
4.1%
2023
1 37,377
1 35.621
1,756
4.7%
2024 (Prelim.)
1 38,361
1 36,381
1 1,979
1 5.2%
Source: Bureau of Labor Statistics
The data indicates a moderate annual decline in the total workforce over the past ten years.
As of 2019, Mendocino County's unemployment rate was 4.0%; down from a recent peak of
11.3% in 2010 and below its pre -recession low of 5.2% in 2006. This followed the general
pattern observed within most counties in the state: a sharp increase in unemployment figures
as the recession takes hold in late-2008, followed by steady improvement from 2011-onward.
Mendocino County's rate of recovery, however, lagged those of the nine Bay Area counties,
which benefited from much stronger job growth throughout multiple industries.
In April 2020, unemployment increased dramatically to 14.7% in the county (16.1% in
California), reflecting the on -set of the covid-19 pandemic and its devastating impact on short-
term unemployment figures due to government mandated business closures and shelter -in -
place orders. By the end of 2020, unemployment had risen to an average rate of 8.9%. As
businesses were allowed to re -open, the rate fell to a normalized -level of 5.2% for 2024.
Keith Sablik, MAI: 151 Laws Ave
AREA DESCRIPTION
Demographics
Approximately 68% of the population lives in the unincorporated areas of the county. The 2000
Census saw a county population of 86,265. By January 01, 2025, this figure had by 4.1% to
89,827.
COUNTYXITY
2015
2016
2017
2018t.
2019
2020
2o21
2o22
2023
2024
1 2925
Mendocino County
Fort Bragg
7,633
7,672
7.449
7,540
7,494
7,451
7,409
7,153
7,014
7,179
7,187
Pantkena
444
448
437
438
430
438
435
443
439
445
452
U kiah
16,156
16,186
15,889
16,081
15,942
15,951
15,526
16,080
15,929
16,108
16,325
Willits
4,860
4,879
5,092
5,133
5,107
5,065
5.040
4,920
4,858
4,830
4,838
Balance Of County
59,070
59,193
60,225
59,350
59,232
1 58,803
1 58,259
61,403
60,924
60,914
61,025
Incopnierl
29,093
29,185
28,867
29,192
28,973
28,905
28,410
28,596
26,240
28,562
28,802
Counly Total
88,163
88,378
89,092
88,542
88,205
87,708
86,669
89,999
89,164
89,476
M,827
(California DepaAment of Finance E-5 Population and Housing Estimates)
The state's Dept. of Finance data indicates there were 888,250 households in the county as
of January 01, 2025. The median household income was $67,454 in 2023, with a December
2024 cost -of -living index of 90.6 (below the U.S. average of 100), making it a notably more
affordable environment than the Bay Area.
Housing
Housing in Mendocino County is predominantly detached single-family units, making up
approximately 70% of the total stock. They include modern subdivisions, custom homes, and
small and large acreage rural properties, such as ranch homes or cabins.
According to BAREIS (Multiple Listing Service) statistics, the average price for a single-family
residence, countywide in 2024, was $589,738 (median price $500,000) for a 1,529-sf, 3-
bedrooml2-bathroom residence. Manufactured homes account for approximately 13% of the
housing stock. These dwellings are the preferred primary residence of many persons in the
area due to their affordability and low maintenance. Multi -family housing is limited, accounting
for 13.8% of the housing stock with most situated in the four incorporated communities. The
county has ample vacant land that is planned for residential development; however, the rate
of countywide residential growth is expected to remain moderate due to limited infrastructure
of its communities and the availability of sewer and water services. Many of the unincorporated
residential areas must rely on private water sources and septic systems, and natural gas is
not available in the county.
Keith Sablik, MAI: 151 Laws Ave
AREA DESCRIPTION
Transportation
Mendocino County is served by the major roadway U.S. Highway 101. Local bus service is
provided by Mendocino Transit Authority, and regional service is provided by Golden Gate
Transit system. Railway access in Mendocino County is currently not in service. The former
Northwestern Pacific Rail line holdings, which shave historically served the area have been
acquired by the State of California. Some 316 miles of rail right—of-way located in northern
California are currently managed by the North Coast Railroad Authority (NCRA), which was
created in 1989. This agency has been under -funded since inception, and there is currently
significant deferred maintenance to the railway lines. However, the California Transportation
Commission recently approved funding as part of the $286 billion Transportation Equity Act
approved by congress in 1985, to begin restoration work to the railroad line in phases with the
eventual aim of providing a viable rail operation thru the southern portion of the rail line
(including portions of Mendocino County). Ukiah Municipal public airport currently offers no
major carrier service, and it has been forced to restrict the scope of its activities due to recent
construction of "big box" retailers in the vicinity of established flight patterns. It is unlikely that
major carrier service will be allowed at the current airport location, although there has been
some discussion in local news services about re -locating the municipal airport to a location
northeast of the current city limits.
Conclusion
Typical of most of California, the economic base of Mendocino County has recovered from the
recent recession, whose lingering effects had put all sectors of the economy on hold for several
years. Continued improvement in the economy will most likely continue the economic growth
at both the local and regional level.
The attendant problems of growth, such as sewage collection, treatment, and disposal, water
supply, and traffic congestion, are all matters currently being studied by local governmental
agencies. Resolution of these infrastructure constraints will be determinative of future
growth, both short- and long-term, within the county and its communities.
Keith Sablik, MAI: 151 Laws Ave
AREA DESCRIPTION: Area Map
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Keith Sablik, MAI: 151 laws Ave
CITY/NEIGHBORHOOD DESCRIPTION
Geographically, Ukiah is situated in a small agricultural valley 614 feet above sea level. The
town is located 110 miles North of San Francisco and 60 miles from the Mendocino coast.
Ukiah was incorporated in 1876. Ukiah has excellent recreation facilities including Lake
Mendocino just to the north and Cow Mountain Recreation area to the west. In addition Ukiah
has numerous city and regional parks.
Freeway mileage from Ukiah to:
San Francisco:
113
Eureka:
160
Santa Rosa:
62
Ft. Bragg:
60
Seattle:
764
Lakeport:
32
Willits:
25
Los Angeles:
620
Williams:
79
Sacramento:
148
i00
so
60
40
20
a
Climate
Source: Ukiah Chamber of Commerce
LowTemperalure
High Temperature
Unlike many other cities close to the coast, Ukiah is relatively fog -free. This fact, coupled with
warm days and cool evenings, gives Ukiah an ideal climate for those who want four seasons
but don't want extreme temperatures. Summer temperatures are regularly in the mid-90s with
cooling in the evenings. Winter temperatures are in the 50s with lows in the 30s-40s. Average
total annual rainfall is approximately 38.5 inches a year.
Population
Ukiah has experienced slow population growth with only a 1 % increase between 2004 and
2014. As of January 01, 2025, the population of Ukiah proper was 16,325. According to the
2020 Census data, per capita income in the city was $28,282 with an average household
income of $50,207, Approximately 21.7% of its population lived below the poverty level versus
15.3% statewide. As to higher education, 18.2% of the residents have a bachelor's degree or
higher. As to age, 24.8% of the population is under 18 years versus 14.5% 65 years and over.
Keith Sablik, MAI: 151 Laws Ave
CITY/NEIGHBORHOOD DESCRIPTION
Industry Employment
Industry employment in Ukiah and the surrounding area is mixed with government, retail &
service, manufacturing, and timber industry workers. Agriculture also plays a role in the
employment for the area; industries include wineries, vineyards, pear orchards and wood
products. Ukiah is the largest producer of Bartlett pears in the world, and has large packing
and export operations in support of this crop. The number of small non-agricultural types of
manufacturers and service industries continue to rise while timber industry activities are in
decline. As with many rural communities, State and local government agencies also constitute
a significant part of local employment.
Housing
Overall, housing in the Ukiah area is mixed with older individual construction homes and newer
suburban -type developments. As of January 01, 2025, there were 7,066 housing units in the
city, of which 60% (4,256) were single-family residences (both attached and detached), 440
were mobile homes, and the remainder comprised of multi -family residential properties. The
housing vacancy rate at that time was 5.3% versus a countywide vacancy of 9.8%.
Keith Sablik, MAI: 151 laws Ave
. — I — - - 4.
24
CITY/NEIGHBORHOOD DESCRIPTION
Most commercial activity, including the Mendocino County Superior Court, is concentrated
along State St or School St. The former is the only major commercial corridor through the city.
Within the downtown core, most uses range from small single -tenant structures to two-story
multi -tenant buildings. Many were developed in the late-1800s to early-1900s and are of
generally average to good -average quality. Design/appeal varies from fair to good, with those
that have retained their vintage architecture retaining the greatest appeal. Most properties
display average maintenance levels.
Residential uses are predominantly situated west of State St, though several pocket areas are
situated between State St to the west and US 101 to the east. Subject's specific neighborhood
is comprised of a single-family residential tract development on the west side of State St.
Developed between the 1950s and 1970s, most are average quality, single -story residences
displaying average maintenance levels. Multi -family residences, like the subject, are limited to
a few former motels/inns that have been converted into fair quality/appeal housing.
The limited commercial activity in the neighborhood is situated along State St, interspersed
amongst other uses. In general, the segment is comprised of fair to average quality single- and
multi -tenant properties developed from the mid-1900s onward. Most are of average
design/appeal and display average maintenance levels.
The bulk of the land use to the south of the subject is comprised of rural -residential and vineyard
lands.
Overall, subject's general location has average appeal to the commercial markets due to the
quality and care of existing properties and its proximity to the downtown.
Keith Sablik, MAI: 151 taws Ave
CITY/NEIGHBORHOOD DESCRIPTION: location Map
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Keith Sablik, MAI: 151 Laws Ave
SITE DESCRIPTION
Present Use
Single -tenant office
A title report was not provided for review.
Easements
It is assumed there are no known or noted adverse
easements at the subject that would impact its use or
value.
Off —Site Improvements
Illuminated, asphalt streets w/concrete curbs, gutters,
& sidewalks
Soils
No soils study has been reported; soils appear
adequate to support existing use; no soil contamination
apparent from initial inspection.
Overview
The subject parcel is identified as APN: 003-420-47 and is commonly referenced as 151 Laws
Ave. It is situated west of US 101, on the south side of Laws Ave, between S State St to the
east and S Dora St to the west. Laws Ave is secondary, east/west street providing ingress &
egress to and from a residential neighborhood lying west of S State St. At the subject, it is an
illuminated, 2-lane asphalt roadway with concrete curbs, gutters, & sidewalks. Parallel parking
is available on both sides of the street.
The subject maintains approximately 150' along the south side of the street. Traffic volume
at the subject is light throughout the day. Subject's visibility is rated fair -average based upon
the light traffic volume.
Per public records, this is an 20,940-sf (0.48-acre) parcel. It is a rectangle -shaped, interior lot
with level topography throughout. Landscaping is limited to a few bushes. Additional site
improvements include full public utilities, grading and an asphalt parking lot with striped -
parking for 22 vehicles, plus a gated/fenced side yard with additional, unmarked vehicle
parking. The former produces a better -than -average parking ratio of 5.5 spaces per 1,000 sf
of gross building area (GBA). Based upon a gross building area of 3,974 sf, the property has
a floor area ratio (FAR) of 0.19, resulting in some surplus land.
Based upon the attributes cited above, the subject has good site utility and average appeal.
Keith Sablik, MAI: 151 Laws Ave
SITE DESCRIPTION
Land Use and Zoning
The property resides within the SR: Suburban Residential land use designation under the
county's existing General Plan. Specifically, it is zoned: C-1: Limited Commercial District.
The following excerpt is taken from the county planning department's web site:
C-1: Limited Commercial District
This district is intended to create and enhance areas where public facilities and services
are available. It is also intended to facilitate a balance between jobs and housing, provide
for the possibility of live/work spaces, and provide additional opportunities for affordable
housing. A limited number of retail commercial goods and services are desired primarily
to meet day to day needs of local residents and to facilitate livable/walkable communities
and live/work opportunities. Typically this district would be applied in conjunction with
residential uses and would permit only those uses which do not significantly increase
traffic, noise or other impacts
The regulation emphasizes a broad range of retail and office uses, as well as single- & multi-
family residences.
Development standards under the C-1 zoning include:
1. Minimum lot size:
a. Parcels with water & sewer districts: None
b. Residential: 6, 000 sf
c. Parcels with water or sewer districts: 12, 000 sf
d. Parcels outside of a water or sewer district: 40,000 sf.
2. Maximum Dwelling Density, for parcels within municipal water & sewer districts:
a. 1 single-family residence per 6,000 sf parcel
b. 1 Multi -family residential unit per 1,600 sf
3. Building Height Limits: 35'
4. Setbacks
a. Front 20'
b. Side: None required, except that any side or rear yard contiguous to any district
other than commercial or industrial shall have a minimum side yard of five (5)
feet
c. Rear. • None required, except that any side or rear yard contiguous to any district other
than commercial or industrial shall have a minimum side yard of twenty (20) feet
d.
5. Parking:
a. Retail and Office: 1 space per 300 sf of gross floor area
Based upon these regulations, the subject site and use are legal and conforming.
Keith Sablik, MAI: 151 Laws Ave
SITE DESCRIPTION
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Subject is located in FEMA map reference #06045C1514G, Zone X (areas determined to be
outside the 0.2% annual chance floodplain), dated 0911912025.
The property is not located in a FEMA-designated flood -hazard area.
Earthquake Hazard
Per the California Dept, of Conservation's California Geological Survey, the property is located
in the Ukiah Quadrangle, but is not situated on a known fault zone.
In general, much of California is traversed by numerous faults — including many as -yet -known
— that produce frequent and sometimes notable seismic activity. The proximity to a fault has
proven to have little or no impact upon an area's marketability; though it may trigger additional
building requirements to mitigate damage from an earthquake.
Keith Sablik, MAI: 151 Laws Ave
SITE DESCRIPTION
Environmental Hazard
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STATUS
COMPUTED• CASE CLOSED
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1000 STATE STREET 901lTH
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1400 STATE STREET SOUTH
00UPLETED• CASE CLOSED
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COUPLETEO • CASE CLOUD
1610 STATE STREET. SOUTH
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Per the State Water Resource Control Board's Geotracker website, there are 6 environmental
hazard sites identified within a 1,000' radius of the subject. All are marked completed -case
closed.
Though it is noted the appraiser is not an expert in the detection of such matters, a cursory
inspection finds no known or noted environmental hazards at the subject.
Keith Sablik, MAI: 161 Laws Ave
SITE DESCRIPTION: Aerial Photograph
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(GoogleEarth. pate 041212025. Keith Sabak. MAi)
The approximate shape of the subject is shown in red. Adjacent and nearby uses include multi- and
single-family residential properties to the north, south and west; and a fire station (A) to the east, followed
by S State St (yellow line) and the Ukiah municiLpal a'rport (B).
The subject has unimpeded vehicular access to and from Laws Ave.
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Keith Sablik, MAI: 151 Laws Ave
SITE DESCRIPTION: Assessor's Parcel Map
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Keith Sablik, MAI: 151 Laws Ave
IMPROVEMENT DESCRIPTION: Building Sketch
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AREA CALCULATIONS SUMMARY
AREA CALCULATIONS BREAKDOWN
Code
DescAption
factor
Not size
Perimeter sm Totals
Name
Base x
might x
Widths
nna
GBAI
GBA
1.0
3974.0
287.0
3974.0
GBA
69.5 x
12.0 -
834.0
GAR
Canopy
1.0
756.0
114.0
756.0
23.0 x
6.0 -
138.0
40.5 x
6.0 -
243 -
67-5 x
36.0 -
2430.0
23-5 x
14.0 -
329-0
Net BUILDING
cnt
1
(rounded)
3,974
5 total items
(rounded)
a.974
Keith Sablik, MAI. 151 Laws Ave
IMPROVEMENT DESCRIPTION
Improvement data was obtained from a physical inspection of the interior and exterior of the
property on December 05, 2025. Building areas are calculated by an automated sketch
program (Apex IV) based upon measurements taken during the inspection.
The subject is improved with an average quality, single -story, single -tenant office building
estimated to have been constructed mid-1900s. Its design has no significant architectural
detailing, as is common of the era, and has average appeal to the market.
The structure has a gross building area of 3.974 sf and is 100% efficient,
Construction is masonry (concrete block) & wood framing over a concrete slab foundation.
Exterior materials include T-111 wood panel & concrete block siding; a composition shingle
roof; and a combination of single -pane, aluminum sash & dual -pane, vinyl sash windows.
The floor plan includes a central lobby, customer counter, open office space, five private
offices, conference room, breakroom, storage/shop room and three 2-fixture restrooms.
The floor plan functions well for its intended use with no noted obsolescence in its design.
Keith Sablik, MAI: 151 Laws Ave
IMPROVEMENT DESCRIPTION
Interior materials include finished sheetrock & concrete block; 8' to 9' finished sheetrock &
acoustic drop -panel ceilings; carpet, linoleum tile & ceramic floors; fluorescent lights; and
three roof -mounted HVAC units (per aerial images) providing warmed/cooled air to the
building. Security measures include standard door locks.
Additional improvements include a 756-sf metal canopy for covered storage of vehicles,
equipment and/or materials.
The roof and one of the HVAC units are newly installed. Overall, the property appears to be
well maintained and is in average condition with no apparent major repairs needed at the time
of inspection.
The actual age of the improvements is unknown, but have an effective age of 20 yrs. Based
upon a 50-yr economic life (Marshall Valuation Service cost index depreciation tables: Offices,
Average, Class C), the building has an anticipated remaining economic life of 30 yrs
Keith Sablik, MAI: 151 Laws Ave
MARKET ANALYSIS
Office Trends
The subject is located in Northern California in Mendocino County — a largely rural county
whose main industries are government service, retail, agriculture and tourism. Specifically,
the subject is located in the downtown core of the incorporated city of Ukiah — the largest city
in the county and home to the county seat. The city's commercial markets — retail and office
— are of moderate size with the both sectors largely serving the local populace.
National and local markets in nearly all industries have recovered from the recent recession,
which was rooted in the collapse of the housing market in 2005/2006. Rising mortgage
defaults subsequently triggered a collapse within the financial markets by the summer of 2008,
cementing it as the country's worst recession since the 1930s.
The recession's impact upon unemployment figures was significant within Mendocino County.
Vacancy levels, elevated in the early 2000s because of the softening economy attributed to
the events of September 11, 2001 and the dot-com bust, declined by mid -decade as the local
economy benefited from an overall improvement of economic conditions on both the local and
national levels. By 2006-2007, however, the evolving collapse of the residential real estate
market was starting to be felt in unemployment numbers, which began to climb from low 5%-
levels. The 2008 collapse of the financial markets and economic recession resulted in a peak
county unemployment rate of 11.3% in 2010. Since then, the rate steadily improved to a 2019
average rate of 4.0%.
In April 2020, unemployment increased dramatically to 14.7% in the county (16.1% in
California), reflecting the on -set of the covid-19 pandemic and its devastating impact on short-
term unemployment figures due to government mandated business closures and shelter -in -
place orders. By the end of 2020, unemployment had risen to an average rate of 8.9%. As
businesses were allowed to re -open, the rate fell to a normalized -level of 5.2% for 2024.
Keith Sablik, MAI: 151 Laws Ave
MARKET ANALYSIS
Costar is reporting a Q3-2025 office base of 571,425 sf for Ukiah, with a vacancy rate of 1.66%
on 9,480 sf. Countywide, there is a total base of 851,556 sf with a vacancy rate of 1.39% on
11,825 sf. Ukiah accounts for 67.1% of the countywide office space and 80.17% of the total
vacancy, indicating it is performing below market expectations relative to its size.
Vacancy Rate - Ar A616ty %e 3r y* IDY AN raaJu 1r 3e SY 0
tQY,
6%
6%
a%
2%
ex 1 , . , ! '--'- `-1 1�,—�I... �,� i<, I s. c x x c i} },� } . F �_. _� 1,_I1-+-�—L1 1
07 06 09 i0 n • 17 13 U 15 16 17 t! 19 ?D 21 T2 23 2a 23
Vacancy rates trended upward during the recession and immediately thereafter, with a
downward trend commencing by 2014 as was typical of most markets. Post -recession
economic gains resulted in the near -steady decline in vacancy rates until late 2018. Since
then, vacancy levels have generally trended upward. Initially, this was likely due to a slowing
economy after multiple years of strong growth, only to be followed by the on -set of the
pandemic by early 2020. By late-2021, vacancy rates began to stabilize only to trend upward
again by mid-2022, this time driven by economic concerns and the Federal Reserve's
aggressive campaign to battle inflation via quarter -aver -quarter interest rate increases that
have had a slowing effect upon most real estate markets.
One aspect that has come to light since the pandemic is the decline in demand for medium to
large office space. The proven viability of mass telecommuting during the pandemic has
allowed many large companies to re -think their office space requirements, with many shifting
to full-time telecommuting or a hybrid work environment (employees working remotely with
limited days in office) that demand less office space.
Keith Sablik, MAI: 151 Laws Ave
MARKET ANALYSIS
Corresponding to the rise and fall of vacancy rates, lease rates in the Ukiah market followed
an inverse path as seen in the following chart (Costar).
Market Asking Rent per SF
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sled
sl sa
S*40
$1.30
Inna;lpn Adjusted Nktary 1Y If Y f AR rotecast l Y Y• v a-
it zo I I I I 1 ` I I ' , t I 1 t r
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Lease rates declined 20%-plus during- and post -recession, excluding owner concessions
which increased (free rent and/or allowances) over the same period. At their lowest point in
recent years, office lease rates fell to an average of $1,28/sf in 03-2012. Improving economic
conditions and vacancy rates in the interim years resulted in a Q3-2025 average of $1.84/sf,
marking a 43.8% increase from its recessionary low. Currently, lease rates range from NNN
to full service with most falling between $1.00 to $2.00 per square foot. The typical lease
includes some provisions for tenant improvements and/or free rent; though the degree of
concessions/allowances has diminished in light of the improving market conditions. Most
include annual rent adjustments (either flat or tied to CPI) and at least one renewal option.
A continued slow decline, specifically related to medium- & large -tenant office space, is
forecasted over the coming year due to the pandemic -related shift in the work -force
environment; though some recent return -to -the -office announcements (primarily on a hybrid
schedule) amongst the business community may signal a stabilization of the market.
Keith Sablik, MAI: 151 Laws Ave
MARKET ANALYSIS
Capitalization rates for office space throughout Mendocino County spiked during the
recession, climbing to a high of 10.0% in Q3-2009. As seen in the chart, rates slowly returned
to stabilized levels in the mid-7.00% range by 2017.
Market Cap Rate'
10.5%
EOA%
9.5%
9.0%
8.6%
e0%
7.5%
% reatay 1Y 3Y 5Y M? AN Fore"Sl 1r 3Y SY 0 - 5 —
7M4 t ,07` 08 409 10 1 11 1 12 t3 ! 1u 1 t5 ! is 1 17 1s 19 20 21 22 i 23 N f
By 2016, capitalization rates began a climb that was originally attributed to concerns over the
economy, only to be followed by the on -set of the pandemic, which saw a notable, negative
shift in the demand for medium -to -large office properties. Most recently, the Federal Reserve's
aggressive policy against inflation has caused lending rates to climb, adding to concerns that
some form of recession may be looming on the near horizon. Together, these factors have
resulted in a Q3-2025, countywide capitalization rate of 9.49%, with a stable -to -upward trend
anticipated over the next couple of years — again, specifically related to medium- and large -
office market environment.
Amongst the small owner -occupied offices, such as the subject, capitalization rates remain in
the 5% to 7% range, reflecting market -participants who place little to no emphasis on the
potential income of a building when malting a purchasing decision.
Keith Sablik, MAI: 151 Laws Ave
MARKET ANALYSIS
With the recession, office market values saw declines of 30%-plus since their peak in 2007
with increased marketing periods observed in the face of limited buyers and tightening credit.
Post -recession, positive signs within the market included a steady, low unemployment rate,
increases in leasing activity, and rising lease rates, resulting in upward pressure upon property
values. Ukiah's office market values responded favorably to this environment, rising to an
average price/sf of $176/sf by Q3-2025 — an 83.3% increase over 04-2009's low of $961sf, but
down 12.4% from a high of $201/sf in 04-2021
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Overall, the Ukiah office market had benefitted from strong consumer confidence levels, low
unemployment rates, and a positive business environment. By late 2019, signs of a softening
of the market had surfaced, with many analysts warning that the overall economy was due for
a correction after an extended, post -recession period of growth; and that the then -environment
was fragile and could falter in light of concerns over national & international debt levels,
continued unrest/fighting in the world, a lack of confidence if government leaders, and/or a
worsening of unemployment figures.
In early 2020, this environment was exacerbated by the on -set of the world-wide pandemic.
Most communities and many industries were initially, severely depressed by the evolving, on-
going threat of the covid-19 (corona) virus pandemic and government -enacted mandates to
curb transmission. As vaccines became commonly -available by early 2021, easing of social -
distancing mandates alleviated the financial distress amongst some, but not all industries.
Currently, rising inflation driven by pandemic -related supply -chain issues and the recent, on-
going war in Ukraine have added to the economic uncertainty of both national and regional
economies. In mid-2022, the Federal Reserve began an aggressive campaign to battle these
trends via quarter -aver -quarter, interest rate increases that appear have had a slowing effect
upon most real estate markets.
Looking at the long-term prognosis for medium -to -large office properties, it is anticipated that
space requirements for larger companies will continue to decline for a period as forced-
telecommuting during the pandemic has illustrated to many that telecommuting — either fully
or under a hybrid system (limited in -office days & shared employee work space) — is a viable
alternative to the traditional office environment.
Smaller, typically owner -occupied office space has proven more stable within the current
environment and are anticipated to fare better than their larger counterparts in the coming
years.
Keith Sablik, MAI. 161 Laws Ave
HIGHEST AND BEST USE ANALYSIS
Highest and best use is defined as:
The reasonably probable and legal use of vacant land or an improved property, which is
physically possible, appropriately supported, financially feasible, and that results in the highest
value. The four criteria the highest and best use must meet are legal permissibility, physical
possibility, financial feasibility, and maximum productivity."
To determine the highest and best use, the appraiser needs to complete the following analysis:
1. What are the possible physical uses of the site?
2. What legal restrictions or limitations are being imposed as a result of
zoning and/or deed restrictions?
What uses would feasibly produce the highest present value for the
site?
4. What is the highest and best use from among the feasible uses?
"Taken from the Dictionary of Real Estate Appraisal, 41" Edition, 2002, Appraisal Institute
Keith Sablik, MAI: 151 Laws Ave
HIGHEST AND BEST USE: As If Vacant:
Legal Permissibility — The property resides within the SR: Suburban Residential land use
designation under the county's existing General Plan. Specifically, it is zoned: C-1: Limited
Commercial District. The regulation emphasizes a broad range of retail and office uses, as
well as single- & multi -family residences.
The subject parcel is legal and conforming to regulations.
Physical Possibility — The physical characteristics of the site appear to be adequate for any of
the allowable uses cited above. Topography is level; drainage appears to be adequate; public
utilities are available; soil type appears to be adequate based on surrounding development;
and, the subject is not located in a known earthquake or flood hazard zone.
Financial Feasibility — The property is situated in a mostly -residential area with uses on its
specific block dominated by multi -family residential properties. Allowable multi -family
residential development would conform to the general neighborhood. In today's market,
however, development costs for a multi -family residence often exceed market values due to
the latter's recessionary decline, making most new projects unfeasible.
Maximal Productivity — The maximally productive use of the site is a small multi -family
residence conforming to development standards imposed under the zoning regulation. Current
economic conditions, however, may make such a development financially infeasible, which
would result in an interim highest and best use as hold for development.
Keith Sablik, MAI: 151 Laws Ave
HIGHEST AND BEST USE: As Improved
Legal Permissibility — The property resides within the SR: Suburban Residential land use
designation under the county's existing General Plan. Specifically, it is zoned: C-1: Limited
Commercial District. The regulation emphasizes a broad range of retail and office uses, as
well as single- & multi -family residences.
The subject property is developed with a single -tenant office building and is conforming in both
its site and use to current zoning regulations.
Physical Possibility — The structure is configured for single -tenant office occupancy. It is ill -
suited to any other use without significant renovation cost; though the number of suites is
flexible.
Financial Feasibility — Three options are considered under financial feasibility: leave the
property as -is, modify it, or demolish it. The latter is supported with the underlying land value
less demolition costs exceeds the value as improved. In today's market, subject's land value
does not exceed its value as -improved, precluding the option of demolition.
Subject's existing office use increases the productivity of the site. As improved, it is financially
feasible at this time.
Maximal Productivity —The subject's existing use as a single -tenant office property is identified
as the most productive considering the legal, physical, and financial aspects of the property.
Keith Sablik, MAI: 161 Laws Ave
METHODS OF VALUATION
In the appraisal of real estate, there are three separate appraisal methods that are customarily
utilized for the purposes of determining the value of a given property. The nature of the
property determines which one or more of these methods is utilized and which receives the
greatest emphasis in the reconciliation.
The value concluded via the cost approach is comprised of two components: the value of
the underlying land as if vacant and available for development and the estimate of the
reproduction or replacement cost of the improvements. This method typically receives the
greatest emphasis when valuing special purpose or newer properties for which reliable
construction costs can be determined. Limited land sales erode the reliability of this method,
as does the difficulty in accurately assessing all forms of depreciation, Furthermore, the typical
investment buyer within the segment will place much greater weight on the sales comparison
and income approaches. The cost approach, though considered, is not utilized in this report
in the determination of market value.
The sales comparison approach requires several distinct steps. The appraiser must first
identify recent sales of similar type properties in the competing market place. These sales
must then be confirmed and qualified to determine that they represent "arm's length"
transactions with no unusual conditions attached. The resulting data must then be compared
with the appraised property and supportable adjustments must then be made for any
significant variances. The final step is then to correlate the adjusted data to provide an
indicated market value for the subject. The approach is essential in the process of appraisal
for most real property. This approach is given much consideration by market participants and
is utilized within this appraisal.
Value via the income approach can be determined through the use of direct capitalization or
yield capitalization (discounted cash flow) analysis. The former requires the appraiser first
determine the economic income capable of being generated by the subject, commensurate
with its highest and best use. A stabilized pro -forma operating statement is developed based
on this economic income and the anticipated operating expenses required to secure the
stabilized income stream. This anticipated net operating income is then converted to value
estimate via a capitalization rate determined derived from the market. Both methods are given
much considered by participants within subject's market segment.
Direct capitalization is utilized in the appraisal of the subject property.
Keith Sablik, MAI: 151 Laws Ave
SALES COMPARISON APPROACH
The sales comparison approach is defined as:
A set of procedures in which a value indication is derived by comparing the property
being appraised to similar properties that have been sold recently, then applying
appropriate units of comparison and making adjustments to the sale prices of the
comparables based on the elements of comparison.2
Traditionally, an estimate procedure in which the market value estimate is predicated upon
the price paid in actual market transactions with current listings setting the upper limits of
value. It is a process of analyzing sales of similar recently sold properties in order to derive
an indication of the most probable selling price for the subject property under the conditions
set forth within the appraisal report. The reliability of this process is dependent upon:
1, the availability of comparable data
2. the verification of that data
the degree of comparability and the extent of necessary
adjustments for the differences
4. the absence of non -typical conditions affecting the sales price of
the properties.
The following pages summarize the sales used in this approach to value. In turn, they are
followed by a quantitative comparison analysis and the final estimate of value derived from
this approach.
As is typical of market participants, a price -per -square foot unit of comparison is utilized.
2 The Dictionary of Real Estate Appraisal 4a Ed ticn. Appraisal nst lute
Keith Sablik, MAI: 151 Laws Ave
SALES COMPARISON APPROACH
Comparable #1
Address
780 S Dora St
Ukiah, CA
Sale Price
$407, 725
Price/SF
$135.91
Date of Sale
04/25/2025
Document #
25-03378
Lot Size
19,166 sf
Year Built
1960
Construction
Wood Frame
QualltylAppeal
Average
Condition
Average
Gross Building Area
3,000 sf
FAR
0.16
Use
Office
Parking
12 spaces
Seller Redwood Childrens Services Inc
Buyer William B Binns And Michaela M Binns
Revocable Trust
Data Sources MLS 3250121901Public Records
Comments: Sale of an average quality/appeal, single -tenant, office building located on a
secondary roadway in Ukiah. The wood frame building was constmcted in 1960 and was in
average condition at time of sale; selling after 63 days on the market.
Keith Sablik, MAI: 151 laws Ave
SALES COMPARISON APPROACH
Comparable #2
Address
115 E Smith St
Ukiah, CA
Sale Price
$381,000
Price/SF
$138.24
Date of Sale
0812012024
Document #
24-07124
Lot Size
5,450 sf
Year Built
1921
Construction
Masonry
Quality/Appeal
Average
Condition
Good -Average
Gross Building Area
2,756 sf
FAR
0.51
Use
Office
Parking
4 spaces
Seller
Thomas F Parducci Charitable
Remainder Trust
Buyer
Mendocino County Resource
Conservation District
Data Sources
MLS 3240225491Public Records
Comments: Sale of an average quality/appeal, single -tenant, office building located on a
secondary roadway in Ukiah. The masonry building was constructed in 1921 and was in good -
average condition at time of sale; selling after 63 days on the market.
Keith Sablik, MAI: 151 Laws Ave
SALES COMPARISON APPROACH
Comparable #3
Address
166 E Gobbi St
Ukiah, CA
Sale Price
$495,000
Pfice/SF
$221.97
Date of Sale
0210212024
Document #
24-00905
Lot Size
9.009 sf
Year Built
1930
Construction
Wood Frame
Quality/Appeal
Average
Condition
Average
Gross Building Area
2,230 sf
FAR
0.25
Use
Office
Parking
8 spaces
Seller David Groezinger
Buyer LS Health Properties LLC
Data Sources MLS 3239300921Public Records
Comments: Sale of an average quality/appeal, dual -tenant, office building located on an
arterial roadway in Ukiah. The wood -frame building was constructed in 1930 and was in
average condition at time of sale; selling after 16 days on the market.
Keith Sablik, MAI: 161 Laws Ave
SALES COMPARISON APPROACH
Comparable #4
Address
1367 S Dora St
Ukiah, CA
Sale Price
$500,000
PrlcelsP
$106,38
Date of Sale
08/28/2023
Document #
23-06841
Lot Size
27,617 sf
Year Built
1966
Construction
Wood Frame
Quality/Appeal
Average
Condition
Average
Gross Building Area
4,700 sf
FAR
0.17
Use
Office & Medical Office
Parking
22 spaces
Seller Vineyard Valley Inn LLC
Buyer J & L Valley Properties LLC
Data Sources MLS 3230191051Public Records
Comments: Sale of an average qualitylappeal, two -building, multi -tenant, office complex
located on a secondary roadway in Ukiah. The wood frame buildings were constructed in 1966
and were in average condition at time of sale; selling after 132 days on the market.
Keith Sablik, MAI: 151 Laws Ave
SALES COMPARISON APPROACH
Comparable #6
Address
617 S State St
Ukiah, CA
Sale Price
$675,000
Price/SF
$192.86
Date of Sale
0211512023
Document #
23-01200
Lot Size
13,416 sf
Year Built
Unknown
Construction
Masonry & Wood Frame
Quality/Appeal
Average
Condition
Good -Average
Gross Building Area
3,500 sf
FAR
0.26
Use
Office
Parking
Unknown, ample
Seller Frederick Wong Living Trust
Buyer Benjamin & Anela Kobetz
Data Sources MLS 3220900261Public Records
Comments: Sale of an average quality/appeal, single -tenant, office building located an an
arterial roadway in Ukiah. The wood -frame & masonry building was in good -average condition
at time of sale; selling alter 96 days on the market.
Keith Sablik, MAI: 161 Laws Ave
SALES COMPARISON APPROACH
a la mode inc'
Mendocino College. h*Awks
107
,QVIPAPARLE No,
Pr 115 E Smith St Why Springs
x 1.76 miles N
COMPARABLE No. 5 ;a
617 S State St
1.33 miles N lAv
e
Grow- Rif U9 I CUMPARABLEHu. 3
166 E Gobbi St
ld 1.26 miles N
COMPARABLE No. 1
780 s Dora St s
1.20 miles N k
-- TWgaCegkl
loll Talmage
.A
COMPARASLE No. 4
1357 S Dora St k
0.34 miles NW
SUBS;CT
151 laws Ave
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Keith Sablik, MAI: 161 Laws Ave
SALES COMPARISON APPROACH
Overview
Comparable selection emphasized average to good -average quality/appeal office buildings in
the Ukiah market area, having sold from 2023-onward. Greatest consideration was given to
properties ranging in size from 2,000 sf to 6,000 sf.
The five closed sales utilized in the analysis are the best available indicators at this time,
requiring the fewest adjustments. As is the practice of market participants, a price -per -square -
foot unit of comparison is employed in the approach.
Market Conditions
The five sales occurred between February 2023 and April 2025. Analysis finds there has been
no significant change in market values during or since this period, precluding the need for
adjustment.
Location
The subject is situated on a secondary roadway in an unincorporated portion of southern
Ukiah. Its location has average appeal to the office market.
Comparable 4 is located in subject's general market area and has similar location appeal.
Comparables 1, 2, 3 and 5 are located within central Ukiah, amongst greater concentrations
of commercial uses that result in superior location appeal.
Quality/Appeal
The subject has average build quality and design/appeal attributes, as do all five indicators.
Condition
Average condition levels are observed on the subject and Comparables 1, 3 and 4. The good -
average condition levels of Comparables 2 and 5 are superior to the subject and are adjusted
accordingly.
Size
The Comparables are adjusted for size differences based upon the inverse relationship of size
to price (i.e., larger properties typically sell for a lower price/sf and vice versa). At 3,974 sf,
subject's gross building area falls between the Comparables, which range in size from 2,230
sf to 4,700 sf. It is smaller than Comparable 4 and larger than all others.
Use
The subject is configured for general office use, as are all four of the five indicators.
Comparable 4 has a mix of general- and medical -office uses. Adjustment is made for the
greater cost and value associated with its medical -office space.
Other
The subject parcel includes surplus land area, as well as a metal canopy for covered storage.
Comparables 1 and 4 are the best match of its parcel, but lack a similar or off -setting
improvement to subject's canopy. Comparables 2, 3 and 5 are adjusted for varying degrees
of inferior parcel size and their lack of a canopy or off -setting improvement.
Keith Sablik, MAI: 151 Laws Ave
SALES COMPARISON APPROACH
Parking
Parking is evaluated on the basis of number of spaces relative to building size and use.
Subject has ample parking, as do Comparables 1, 4 and 5. Comparables 2 and 3 are adjusted
for their inferior, limited on -site parking.
Summary
The adjusted range of the comparables is approximately $105 to $200 per square foot, with
four of the five sales ranging from $105 to $170, All are good representatives of subject's
competitive market segment with weight distributed fairly evenly amongst them.
In the final analysis, subject's $499,999 pending purchase price equates to a price of
$125.821sf, falling at the predominant midrange of the market data, indicating the property is
selling at a fair -market level.
3,974 sf @ $125.821sf = $500,009, rounded to $500,000
The indicated value of the subject, via the sales comparison approach, is $500,000.
Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH
The income approach is defined in the Dictionary of Real Estate Appraisal, 41" Edition, 2002
as:
A set of procedures through which an appraiser derives a value
indication for an income -producing property by converting its anticipated
benefits (cash flows and reversion) into property value. This conversion
can be accomplished in two ways. One year's income expectancy can
be capitalized at a market -derived capitalization rate or at a capitalization
rate that reflects a specified income pattern, return on investment, and
change in the value of the investment. Alternatively, the annual cash
flows for the holding period and the reversion can be discounted at a
specified yield rate.
The purpose of the income approach is to determine the present value based on future
potential benefits of a property. This is generally measured by the net income which a
fully informed person is warranted in assuming the property will produce during its remaining
useful life. The property is compared with investments of a similar type and class and the
net income is capitalized into a value estimate.
Value via the income approach can be determined through the use of direct capitalization or
yield capitalization (discounted cash flow) analysis. The former requires the appraiser first
determine the economic income capable of being generated by the subject, commensurate
with its highest and best use. A reconstructed operating statement is developed based on
this economic income and the anticipated operating expenses required to secure the
stabilized income stream. The anticipated net operating income is then converted to value
estimate via a capitalization rate determined derived from the market.
Direct capitalization is applied to the subject's forecasted income stream.
The following data illustrates competitive leases in the subject's market segment followed by
a quantitative analysis and comments on the comparison. All lease rates are displayed as
priceisf/month.
Keith Sablik, MAi: 151 Laws Ave
INCOME APPROACH: Comparable Lease Analysis
Lease Comparable #1:
2146 S State St
Ukiah, CA
The indicator is a fair -average quality/appeal, 5,630-sf, single -tenant commercial building
located on an arterial roadway in Ukiah. The metal frame building was most recently used as
a church but can also function as office space. It was in average condition at the time of
leasing.
An undisclosed tenant leased the building on April 01, 2025 for a 5-year term, at an initial rate
of $0.651sflgross.
Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Comparable Lease Analysis
Lease Comparable #2:
495 E Perkins St
Ukiah, CA
The indicator is an average quality/appeal, 4,828-sf, single -tenant office building located on
an arterial roadway in Ukiah. The wood frame building was in average condition at the time
of leasing.
An undisclosed tenant leased the building on May 23, 2024 for a 3-year term, at an initial rate
of $1.241sflgross.
Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Comparable Lease Analysis
Lease Comparable #3:
154 E Gobbi St, Suite A
Ukiah, CA
The indicator is part of a good -average quality/appeal, 1,541-sf, dual -tenant office building
located on an arterial roadway in Ukiah. The wood -frame building was constructed in 1915
and was in good -average condition at the time of leasing.
An undisclosed tenant leased a 1,201-sf suite on June 05, 2024 for a 1-year term, at a rate of
$1.251sflgross.
Keith Sablik, MAI: 161 Laws Ave
INCOME APPROACH: Comparable Lease Analysis
Lease Comparable #4:
320 S State St, 2nd Floor
Ukiah, CA
The indicator is part of a good -average quality/appeal, approximate-2,400-sf, multi -tenant
office building located on an arterial roadway in Ukiah. The masonry building was in good -
average condition at the time of leasing.
An undisclosed tenant leased a 1,200-sf suite on December 13, 2024 for a 1-year term, at a
rate of $1.461sflgross.
Keith Sablik, MAI: 161 Laws Ave
INCOME APPROACH: Comparable Lease Analysis
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Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Comparable Lease Analysis
Overview
Comparable selection emphasized average to good -average quality office space within the
Ukiah market area, having leased from 2023 onwards. Greatest consideration was given to
properties ranging in size from 2,000 sf to 6,000 sf.
Four executed leases are utilized in the analysis. They are the best available indicators at this
time, requiring the fewest adjustments. As it typical of market participants, all leases are
displayed as rate/sf/month. CAM/net charges, if applicable, are excluded from the displayed
rates.
Type of Lease
A gross lease is common to the market and is forecast for the subject. Similar lease types are
found on all four comparables.
Market Conditions
The four leases were signed between May 2024 and April 2025. There has been no significant
change in market rates since their signings, precluding the need for adjustment.
Location
The subject is situated on a secondary roadway in an unincorporated portion of southern
Ukiah. Its location has average appeal to the office market.
Comparable 1 is located in subject's general market area and has similar location appeal.
Comparables 2 thru 4 are located within central Ukiah, amongst greater concentrations of
commercial uses that result in superior location appeal.
Quality/Appeal
The subject is an average qualitylappeal, office property. In this regard, it is similar to
Comparable 2. Comparable 1 is adjusted upwards for its inferior, fair -average design/appeal;
Comparables 3 and 4, downward for their superior, good -average quality/appeal attributes.
Condition
Average condition levels are noted on the subject and Comparables 1 and 2. The good -
average condition levels of Comparables 3 and 4 are superior and are adjusted accordingly.
Size
Size adjustments are based upon the inverse relationship of rate to size (i.e., larger space will
typically lease for a lower price/sf and vice versa). At 3,974 sf, the subject falls between the
four indicators, which range in size from 1,200 sf to 5,630 sf. It is smaller than Comparables
1 and 2; larger than Comparables 3 and 4.
Use
The subject is configured for general office use, as are Comparables 2 thru 4. Comparable 1
was most recently utilized as a church, but can function as an office. Its floor plan, though,
has inferior functional utility due to two large open rooms with limited build -out.
Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Comparable Lease Analysis
Other
The subject parcel includes surplus land area, as well as a metal canopy for covered storage.
Comparable 1 is the best match of its parcel, but lacks a similar or off -setting improvement to
subject's canopy. Comparables 2 thru 4 are adjusted for parcel size and their lack of a canopy
or off -setting improvement.
Parking
Parking is evaluated on the basis of number of spaces relative to building size and use.
Subject has ample parking, as do Comparables 1, 2 and 3. Comparable 4 is adjusted for its
inferior, limited on -site parking.
Summary
The analysis produces an adjusted lease rate range of $0.80 to $1.31 per square foot on a
gross basis. As a group, they are good indicators of subject's competitive market segment
with weight distributed fairly evenly amongst them.
In the final analysis, the estimated fair -market rate of the subject is based upon a midrange
figure of $1.051sflgross.
Subject Lease Analysis
The subject is currently owner -occupied and will continue to be so upon completion of the
proposed sale.
Based upon the preceding analysis, forecasted income is estimated as follows:
3,974 sf @ $1.051sflgross = $4,1731mo.
For purposes of the appraisal, a projected gross monthly income of $4,1731mo. is utilized
in the reconstructed operating statement that follows.
Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Expense Analysis
Overview
No operating data was provided for the subject. The following expenses are derived from an
evaluation of reported expenses within competing properties in the subject's market
area/segment.
Vacancy & Collection Loss
Defined in the 41h Edition of the Dictionary of Real Estate Appraisal as:
An allowance for reductions in gross potential income attributable to projected
vacancy (physical or economic) and potential collection loss considerations. Vacancy
is an expected loss in income as a result of periodic vacant space attributable to
unrented space and tenant turnover. Credit loss considers nonpayment of rent and
can consider units rented at below -market rates (also known as lag vacancy). Vacancy
and collection loss is usually estimated on a property -specific basis as part of the
reconstructed operating statement in the income capitalization approach and applied,
as a percentage, to potential gross income or as a percentage of rentable area of the
property, may also refer to a study of vacancy and collection loss in a defined market
or submarket.
Long term trend analysis finds a stabilized vacancy rate of 5% is anticipated by knowledgeable
market participants, accounting for losses described above in a well maintained, professionally
managed property.
A stabilized 5% vacancy and collection loss is utilized in the subject's income analysis.
Operating Expenses: A gross lease is forecast for the subject. The following estimates are
derived from market costs.
Property taxes are derived from a formula by which the indicated value via the approach is
multiplied by the estimated tax rate of 1.210%, plus direct charges of approximately $300. The
formula requires Excel to utilize a forced circular reference in the calculation.
Insurance costs amongst competitive properties in the region range from $0.501sf to $0.75/sf.
A forecasted rate of $0.50/sf is applied in the analysis based upon the size and quality of
improvements found at the property.
Utility costs are a tenant obligation under a typical gross -lease structure, as are janitorial costs.
Maintenance and repair (M/R) range from $0.50/sf for newer properties to $1.50 for older
properties in poor condition. Based upon subject's age, condition, and size, a stabilized figure
of $1.00/sf (GBA) is applied.
Landscape maintenance is included in maintenance & reserves due to its limited size and low -
maintenance nature of its plantings.
Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Expense Analysis
Management is assumed to be professionally handled. Based upon conversations with
leasing agents at Keegan & Coppin and Orion Partners, two leading commercial brokerage
firms in the region, expenses are typically based upon a graduated scale starting at 5-7% in
the first year with subsequent reductions until a stabilized rate of 3% to 6% is attained. The
management rate is estimated to be 5% of effective gross income (EGI) based upon subject's
lease type, occupancy, and size.
Replacement reserves are forecasted for the subject. They represent the prudent
operation/management of the building and are put in place in anticipation of any future, sudden
expenses and/or the normal deterioration and needed replacement of items. Based upon
subject's age, condition, size, and amenities, a 2% reserve is applied.
Capitalization Rates: Capitalization rates are derived from a single year's net income of a
property divided by sale price. This is the most common method used in the valuation of
subject's market segment via the income approach.
Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5
Overall Ratel 6.82% 1 6.43% 4.1r/6 7.66% 4.99%
The comparables present of a range of capitalization rates from 4.17% to 7.66%. Based upon
current market conditions and the subject's location and physical attributes, a midrange
capitalization rate of 6.50% is applied to the property and utilized in the following reconstructed
operating statement.
Keith Sablik, MAI: 151 Laws Ave
RECONCILIATION
Consideration was given to all three approaches to value; though only the sales comparison
and income approaches were deemed most relevant to the valuation of the subject.
The sales comparison approach is considered a good indicator of value as direct comparisons
are possible. Data within subject's market segment and market area was felt to be of sufficient
quality and quantity as to give much weight to its value conclusion.
The income approach is typically given much weight when appraising income producing
properties. The weakness of the approach is the difficulty in gathering income and expense
data for the comparable sales. The strength of the approach is that it allows consideration to
the subject's net income, which is the actual income to an investor. In this analysis, adequate
office lease data from subject's market area was available, resulting in good reliance upon the
value conclusion.
The two approaches faced similar limitations in their development and indicate a narrow value
range. Weight is distributed evenly amongst them in the final value conclusion.
Indicated value via the sales comparison approach $500,000
Indicated value via the income approach $495,000
Opinion of Value
$500,000
Subject's $500,000 (rounded) proposed purchase price is well supported by the appraisal,
indicating the property is selling at a fair -market value.
Based on my analysis, the opinion of market value of the subject property, as set forth,
documented, and qualified in the attached report under conditions prevailing on December 05,
2025, is:
FIVE HUNDRED THOUSAND DOLLARS
($500,000)
Keith Sablik, MAI: 151 Laws Ave
CERTIFICATION
I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct.
• Unless otherwise noted in writing, the appraiser has done similar assignments to the
subject property and has the knowledge and experience to complete this assignment
competently.
■ The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
■ 1 have no present or prospective interest in the property that is the subject of this report
and no personal interest with respect to the parties involved.
■ i have performed no other services, as an appraiser or in any other capacity, regarding
the property that is the subject of this report within the three-year period immediately
preceding acceptance of this assignment.
■ 1 have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
■ My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
■ My compensation for completing this assignment is not contingent upon the development
or reporting of a predetermined value or direction in value that favors the cause of the
client, the amount of the value opinion, the attainment of a stipulated result, or the
occurrence of a subsequent event directly related to the intended use of this appraisal.
■ My analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
• 1 have made a personal inspection of the property that is the subject of this report.
■ No one provided significant real property appraisal assistance to the person signing this
certification.
• The reported analyses, opinions and conclusions were developed, and this report has
been prepared, in conformity with the requirements of the Code of Professional Ethics
and Standards of Professional Appraisal Practice of the Appraisal Institute.
• The use of this report is subject to the requirements of the Appraisal institute relating to
review by its duly authorized representatives.
■ As of the date of this report, I have completed the continuing education program of the
Appraisal Institute.
�4
Keith Sablik, MAI
Certified General Appraisal
CA Lic #AG008653
Keith Sablik, MAI: 151 Laws Ave