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these total direct construction costs were 7 percent for “General
Conditions” and 5 percent for “Overhead and Profit”. The Adamson
report estimated the probable replacement cost of the Redwood
City Fox to be $7,016,000, broken down as follows:
Price per
Square Feet Square Foot Total Cost
Theater 24,430 $222.06 $5,425,000
Second Level Office 6,892 132.33 912,000
East Retail 5,550 61.62 342,000
West Retail 4,940 68.22 337,000
Total $7,016,000
The Adamson estimate did not include the cost of demolishing
the existing structure, nor did it include the cost of any
improvements to the building, such as increasing seismic
performance or improving accessibility. Also excluded from the
Adamson cost estimate were legal and financing costs, fire and
all risk insurance costs, building permits, utility connections
and fees, and fees for professional design, testing, inspection,
and management.
2. Replacement Cost Approach
Under the replacement cost approach, Ingram/Ewing first
valued the land utilizing comparable sales. Ingram/Ewing viewed
6 sales of commercially zoned vacant land in Redwood City as
comparables. Ingram/Ewing made adjustments to the sale prices
for factors such as location, size, time of sale, and potential
use. Ingram/Ewing valued the land, as if vacant, at $27.00 per
square foot, or $720,000 rounded (26,583 square feet x $27.00 per
square foot = $717,741). Ingram/Ewing assigned 20,089 square
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