AgdaPkt 2002-12-09 - Laserfiche WebLink

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� R.�-q3 VI. CONCLUSIONS AND LIMITING CONDITIONS A. Opinion of Value/Condusinn Section V of this report discussed the reuse valuation. Based on this analysis, it is our opinion that as of November 2002. $7.5 million is a fair consideration for air rights par�ls on Block 1, subject to the Reuse Conditions summarized below and the limiting conditions stated below. 6. Reuse Conditions The Project is subjed to specified development standards and restrictions set forth in the DDA. The DDA includes wvenants and reuse conditions that impact the development economics and hence the vaiue of the Site and the interest to be conveyed. If the reuse conditions are changed, then the reuse value is subject to change. This reuse assumes compliance with these covenants and conditions. The most important economic conditions are listed below: • The Developer will construct, operate, and maintain a first class state-of-the-art retail/cinema project as defined in the DDA. • The Developer will provide a copy of a signed lease with a theater operator — approved by the Agency, which lease will have a tertn of not less than fifteen (15) years and will provide for the operation of a 20-screen, 4,200-seat theater with stadium seating and Dolby, THX, or comparable sound system, and which will be open for business seven days per week and will show primarily first-run movies. • The Developer will commence construction immediately upon conveyance. Speculation is not allowed. C. Statement of Limiting Conditions and Assumptions The conduct of any valuation is necessarily guided, and its results influenced, by the terms of the assignment and the assumptions that together form the basis of the study. The following conditions and assumptions, together with lesser assump6ons embodied in this report, constitute the framework of�our analysis and conclusions. It is assumed that the title of the parcels is good and marketable. No title search has been made by KMA, nor have we attempted to detertnine the ownership of the parcels. The value estimates are given without regard to any questions of title, boundaries, encumbrances or encroachments. It is assumed that all assessments, if any, are paid. Keyser Merston Associates, Inc. 18610.0011D17-023.tloc Paga 73