- 30 -
Ingram/Ewing also employed the comparable sales21 method to value
the theater portion of the Redwood City Fox. Recognizing that
the theater would be run by a non-profit group and that there
were no income comparison data available, Ingram/Ewing did not
employ the income capitalization approach to value the theater
portion of the Redwood City Fox.
With respect to valuing the commercial portion of the
Redwood City Fox, Ingram/Ewing employed the replacement cost
approach and the market approach. Ingram/Ewing did not utilize
the income capitalization method for the retail/office component,
and they did not provide any reason for not employing this
method. Ingram/Ewing also did not consider the impact of the
Jacobs lease on the value of the retail/office portion of the
property.
1. Adamson Cost Estimate
To perform their appraisal, Ingram/Ewing required Jacobs to
retain a professional cost estimator to do a cost analysis of the
property. In December 1986, Adamson Associates, a construction
cost planning and management firm located in San Francisco,
California, prepared a detailed report for petitioners estimating
the probable cost to construct a new building matching, in plan
21 In their appraisal report, Ingram/Ewing refer to the
comparable sales method as the market data method. For clarity,
we shall refer to this method as the comparable sales method.
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