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Commissioner Fox referred to Mr. Roush's letter regarding the owners filing a lawsuit of $25 million if the City continues to delay the hearing or otherwise interfere with the conversion. She inquired if this was indicative of what is considered the appraised value of the park. Mr. Close replied that this number was derived from experts and used throughout the State. He added that some cities have not followed State law, and the owners had to exercise their rights to sue for damages resulting from delay. He noted that six months ago, the City of Palm Springs wrote a check on the eve of the trial to the owner of a park for $937,000 due to delay in a conversion. Commissioner Fox stated that in the letter, the City Attorney has asked on numerous occasions to provide a more concrete example of what the purchase price of the lots would be. Mr. Close replied that it would be the fair market value of the property at the time of the conversion, based upon an appraisal. Commissioner Fox inquired why an appraisal was not done prior to sending out the surveys to provide an average cost for the air space. Mr. Close replied that this is not the process prescribed by State law. He noted that they are also following the El Dorado case which specifically states that pricing is not within the jurisdiction of the City. He added that it is even more relevant in this situation because nothing will happen for at least ten years. Ms. Forbath noted that it would not be practical to advertise a price of a home today to be sold ten years later. Commissioner Fox stated that she felt some estimate would provide the residents with the option to consider something in the future. Ms. Forbath noted, as an example, that the selling price in Palm Springs is $140,000, and in Morro Bay with ocean views is $220,000. She reiterated that not all residents will want to buy and that those who want to continue to rent will be able to do so. Commissioner Olson referred to the $25 million lawsuit and inquired if the Planning Commission's denial of the map would be considered a delay and would result in a lawsuit against the City. Mr. Close replied that they would appeal the denial to the City Council. Commissioner Olson noted that Section 66427.5 contemplates that the legislative body or advisory agency can either approve, conditionally approve, or disapprove the map, which is the law. He inquired what basis would be used to sue the City. EXCERPTS: PLANNING COMMISSION MINUTES, February 25, 2009 Page 13 of 19