- 46 -
Mitten/Reynolds determined that preservation was the highest
and best use of the Redwood City Fox. They based this
determination on the property’s character and its use as an
operating theater and related commercial space, which they found
to be consistent with its zoning and location on Broadway. They
also acknowledged the quality of the Redwood City Fox as an
example of an early movie palace and as an example of Gothic
Revival architecture.24
Mitten/Reynolds valued the theater component of the Redwood
City Fox separately from the retail/office component. For the
theater, Mitten/Reynolds relied upon the replacement cost and the
comparable sales approaches. Because they concluded that the
highest and best use of the Redwood City Fox was preservation,
Mitten/Reynolds found that the value of the theater was not
determined by its income potential and that consequently the
income capitalization method was inappropriate for the theater.
For the retail/office space, Mitten/Reynolds relied upon
the replacement cost approach, the comparable sales approach, and
the income capitalization approach. Mitten/Reynolds considered
the impact of the Jacobs’ lease on the property’s value in their
report.
24 Highest and best use considerations for historic
properties, according to Mitten/Reynolds, include “the degree of
historical significance, the physical integrity of the structure,
the level of deterioration and obsolescence, and the physical and
economic environment in which the property is located.”
Page: Previous 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 NextLast modified: May 25, 2011