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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. Mr. Close replied that they have complied with all provisions of State law, and Ms. Forbath added that the Commission can deny it only if the owners had not complied with the requirements. Commissioner Olson stated that he thinks it does not take much to comply with the law. He questioned whether the entire process was a sham. Mr. Close stated that they are expected to comply with State law. He added that many people feel that State law is not fair and that many cities believe they have been given limited discretion. He noted that a bill was passed over a year ago that would have changed it, but it was vetoed by the Governor. Mr. Close stated that he felt it was a fair question and that that he was here not to defend what the legislature did but to follow the law. PLANNING COMMISSION MINUTES, February 25, 2009 Page 22 of 29