Item 26 - Public Hearing Regarding Bristol Project

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ta www.FinanceDTA.com PROJECT INFORMATION SECTION I PROJECT INFORMATION DTA was engaged to conduct a Land Residual Value ("LRV") Study (the "Study") for the Related Bristol Specific Plan project (the "Project") located in the City of Santa Ana (the "City"), California, on behalf of EPD Solutions, Inc. (the "Client"). The purpose of this LRV analysis is to determine whether the Project to be developed by RCR Bristol, LLC (the "Developer") is financially feasible. This Land Residual Study Report ("Report") was prepared to provide the City with a summary of applicable financial assumptions that were utilized by DTA to support the Related Bristol Specific Plan's ("Specific Plan's") LRV. DTA was not provided with cost information to prepare this LRV. Instead, we have integrated information contained in DTA's Draft Market Study Report dated July 3, 2023. The basis of our costs for the LRV were the Specific Plan and the incorporation of costs developed from a database of information for similar projects provided by the firm Land Optimization Strategies and its President, Barry Gross. Based upon the assumptions presented in this Report, DTA concluded that the Net Asset Value ("NAV") of the Project exceeds its costs by $597,895,000. Table 1: NAV Summary 6- Total NAV $2,377,266,000 Total Costs ($1,779,371,000) Excess of NAV Over Costs $597,895,000 DTA's land residual model includes a substantial number of assumptions to support our findings. The focus of this Report is to discuss the general assumptions that support the LRV for the complete build -out of the Project. The Project site includes Income -Producing Properties ("IPP") expected to comprise 3,750 dwelling units, 350,000 square feet ("SF") of retail space, a 250-room hotel, and a 200-bed congregate care facility, as well as roadways, parks, and open space. The Project at build -out is anticipated to provide 3,896 parking spaces, the majority of which will be underground. The Specific Plan area is located north of Interstate 405 (the San Diego Freeway) and west of State Route 55 (the Orange Freeway). The adjacent streets are Sunflower Avenue to the south, South Bristol Street to the east, South Plaza Drive to the west, and West Sunflower to the south, which is the boundary between the Cities of Santa Ana and Costa Mesa. The intersection of South Bristol Street and West Sunflower Avenue will include the construction of a monument establishing an entrance to Santa Ana, including architecture and landscape elements that will establish a notable entry into the City. The current use of the 41.0-acre site includes 465,000 SF of retail space, some of which is vacant, underutilized, or obsolete. The City had a vision for the redevelopment of this property and updated its General Plan to accommodate a different type of development Related Bristol at 3600 South Bristol Street Land Residual Value Study Report Exhibit 10 September 27, 2023 / 1