- 71 -                                         
               The deed restrictions effectively prohibit demolition                  
               of the building.  Furthermore, without even such                       
               restrictions, any attempt to demolish the building                     
               would likely encounter vocal public opposition and a                   
               complicated process to obtain a demolition permit.                     
                         b.  As Improved                                              
               With respect to the highest and best use of the property as            
          improved, Mansbach gave consideration to the Redwood City Fox's             
          "poor operating history", "average" physical condition, and its             
          "poor suburban location".  Mansbach also considered the Redwood             
          City Fox's "limited purchase market appeal":                                
                    Overall, it is concluded that there is a very                     
               narrow purchase market for the subject theater.  The                   
               primary purchaser of the historic movie palaces                        
               nationwide is a public or non-profit entity.  However,                 
               this purchase segment typically involves redevelopment                 
               agencies within cities, and/or historic foundations.                   
               Even public entity purchases of historic theaters over                 
               the past decade have generally been limited to urban                   
               locations and involved only a few transactions.  As                    
               such, due to the lack of activity within this purchase                 
               market, there is scant evidence to support a highest                   
               and best use conclusion for the subject improvements to                
               renovate it to a modern stage facility.                                
          Despite these considerations, Mansbach found that the integrated            
          retail/office portions of the property would have "stronger                 
          demand", and that the "value of the subject as currently improved           
          exceeds the value on the land only basis."  Mansbach also noted             
          that the Redwood City Fox was "architecturally significant", and            
          that it had some "intrinsic value regardless of its                         
          profitability."  Mansbach thus concluded that overall,                      
          preservation of the existing improvements on the subject site               
Page:  Previous   61   62   63   64   65   66   67   68   69   70   71   72   73   74   75   76   77   78   79   80   NextLast modified: May 25, 2011