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Del Rio Appraisal Below $1 Million
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While the Riverbank Redevelopment Agency paid $1.7 million for the Del Rio Building, its parking lot and the adjacent Reed's Garage four years ago, an appraisal of the buildings and parking lot performed last November estimated the current "as is" value at $912,500, Director of Economic Development Tim Ogden said in a written memo to the Agency for its March 14 meeting.

Bare land values, should the properties be demolished, were calculated by the private appraisal company at a market rate of $10 to $12 per square foot and totaled $525,000 for all three properties.

The appraisal did not consider the structural state of the property (the Del Rio Building was declared unsafe for use and boarded up two years ago). But it did suggest the highest and best use for the Del Rio Building as mixed retail/office or meeting hall and as repair shop/dwelling for the former Reed's Garage, Ogden added.

Ogden also recommended immediately transferring the Del Rio property that is now owned by the Redevelopment Agency to the ownership of the City of Riverbank since Governor Jerry Brown in his state budget, effective July 1, has proposed dissolution of redevelopment agencies and naming of a successor agency to take over agency affairs.

That recommendation was due before the council on Monday evening.

If the city does not step in, Ogden said of the Governor's proposed bill, the first local agency that elects to serve as the successor will take over the redevelopment agency's affairs. If no local agency is interested, the Governor will appoint a three-member board to become the successor agency, quickly dispose of agency properties and have the funds transferred to the county auditor-controller for distribution.

Thus both the Agency and the city would lose control of the property and any potential proceeds from its sale.