Place: L’Olivier Restaurant, 465 Davis Court, San Francisco in the main dinning room. (415-981-7824) The restaurant is easily accessible via BART (Embarcadero Station) and $5 valet parking is available.

NOTE: The dinner is being partly subsidized by the chapter, so the cost is a low $37. Please RSVP by April 2 to Secretary Gil Mitchell at gil.e.mitchell@gmail.com and let him know you are coming. Do not reply to the email address—Gil is the one who needs to know!

Captain Joseph W. Rodgers

From 1978 to present Captain Rodgers has been professionally involved as a marine surveyor for international and domestic insurance companies, financial institutions, yacht brokers, law firms, corporations and individuals and insurance companies representing American and London Institute of Marine Underwriters. He and his firm have surveyed vessels, both commercial and private, power and sail, of all sizes, types and construction, including yachts, passenger ferries, research crafts, cargo ships, commercial fishing boats and small tankers. Appointed by Geary Associates Marine Surveyors to the Underwriters at Lloyds of London providing surveys on cargo/ships/passenger ferries, charter fleets and private vessels.

USCG Licensed Master Senior Member NAMS
Certified Yacht Appraiser ASA
Member of ABYC
Certified "Ultra Sonic" N.D.T., Non-Destructive Testing Technician
Steel Ship Audio Gauge Technician.

CLIENTS COME TO RODGERS & ASSOCIATES for many reasons. They have a wide range of services offering an unusual depth of knowledge throughout that range and are internationally recognized experts in virtually every area of appraisal and inspection. Their Santa Cruz, CA based office is the appointed West Coast and San Francisco Bay Area representative of a world-wide network of marine surveyors and appraisers working with the underwriters at Lloyds and with major international insurance markets and financial institutions.

They abide by the code of ethics and regulations set by the American Society of Appraisers and the National Association of Marine Surveyors. They are not engaged in any other marine related industry and as a result we may represent all parties in fairness and truth without prejudice.

RODGERS & ASSOCIATES OFFER THE FOLLOWING SERVICES:
Conditional/Valuation Reports
Trip Surveys
Appraisals of Damage
Casualty Reports
Cargo Inspection
Maritime Arbitration
Expert Witness

Complete N.D.T (non-destructive testing)

• Ultrasonic Hull Gauging
• Oil Analysis on Machinery
• Moisture Gauging of Fiberglass

We are excited that Captain Rodgers will be addressing our chapter on the interesting art and science of Marine Surveying. If you are into boats and ships, see how many vessels you can identify on Joe’s “Sailing Quiz” at http://www.rodgersandassociates.com/index1.htm!

President’s Message

Robin J. Erdmann, ASA, MRICS MAI

Our March meeting speaker featured Richard Pearlman, a dealer and enthusiast of rare ancient coins. Richard’s presentation was about the history of coins and how they were crafted as it affects value. Quality of materials and workmanship all determine coin value. Societies in ancient times also had to deal with counterfeit money. Nothing changes.

We had 23 attendees for this meeting. In fact, we are averaging 20-25 attendees for each dinner meeting. Attendance is up substantially over last year. Ray Mattison won the raffle for the evening, winning a $175 rare coin donated by Mr. Pearlman. Thank you to Nancy Stacy, ASA, for inviting Mr. Pearlman as our speaker. He was among many familiar friends who came to hear him speak.

The next three meetings promise additional interesting topics. The April meeting will feature Captain Joseph Rogers, a pre-eminent marine surveyor from Santa Cruz. For all you folks who own boats of one sort or another, Joe will probably give you some tips on what to look for in your own boat—or prospective boat. You don’t have to own a boat to learn about the intricacies of evaluating them.

The May meeting will feature ASA Governor Jim Brown, who will provide the chapter with a “State of the ASA” presentation. Many changes are occurring at the national level, most notably greater cooperation with the American Society of Farm Managers & Rural Appraisers (ASFMRA), and the Royal Institution of Chartered Surveyor (RICS). The Real Property section has also developed very strong ties with the National Association of Independent Fee Appraisers (NAIFA). Learn the state of these negotiations and other inside scoop regarding our Society as a whole at this important meeting.

Our final meeting during my tenure as your president is our June Candidates Night. This is always a sold-out event, and we can accept only the first 50 registrants.

We also have several seminars scheduled for your benefit. On May 21, we will be sponsoring the Zoning & Site Analysis seminar with Dave Lewis at the Sheraton Petaluma at the Petaluma Marina, just off of Highway 101. Costs will be $195 for regular member registration, $175 for early-bird member registration, and $225 for non-members. Membership rates will be extended to ASFMRA, RICS, REAA, NAIFA, and AI members. The price will include continental breakfast, morning and afternoon breaks, and lunch, as well as class materials. This seminar will be of most interest, but not limited to, real estate appraisers.

Our Filoli seminar is scheduled for June 4 in Woodside. Doug Baxter and Emily Newell are finalizing the program details. It is not just for the personal property appraiser, but for anyone interested in the era when California had a baronial class that lived large and collected well.

We are already beginning to plan for fall seminars, too. Your board approved scheduling a two day, 15 hour USPAP seminar followed by a one day expert witness seminar October 1, 2 and 3. It will be sponsored as an adjunct to an International Plant and Machinery Conference, co-sponsored by ASA, to be held at the Marriott Fisherman’s Wharf October 4 – 7. We expect a significant international participation in this event. This is also Fleet Week in San Francisco. The chapter agreed to sponsor a coffee break for the International Conference to showcase our chapter’s commitment to the MTS discipline.

The Business Valuation folks are also looking to sponsor a seminar with Dennis Webb, ASA, a member of both the BV and RP disciplines. Dennis is a member of the Southern California chapter. He will focus on minority interest analysis.

We have a growing list of dinner speakers and seminars that we are planning for the coming year. It’s your Board’s intent to provide you with a range of services and opportunities and to encourage you to get involved. If there is a dinner speaker or seminar you would like to have the chapter sponsor, please let us know.

Until next month……….

Upcoming Events

Thursday, May 14 ASA NorCal Dinner Meeting
ASA Governor James Brown, ASA

Governor Brown will address us on “The State of ASA . . . Where We Are, Where We’re Going”

Learn more about our international organization, the challenges presented by changing government regulations, and opportunities we are embracing.

Mark your calendar

Seminar “ZONING & SITE ANALYSIS: A Different Perspective”

WHEN: Thursday, May 21, 2009 8:30 am – 4:30 pm (Registration begins at 7:45 am)

INSTRUCTOR: David R. Lewis, ASA, MRICS, SR/WA

Continuing Education: 7 hours OREA credit

WHERE: Sheraton Sonoma County – Petaluma, 745 Baywood Drive, Petaluma, CA 94954 (707-283-2888). The hotel is located at the Petaluma Marina, at the Lakeview exit of Highway 101, in southern Sonoma County.

CONTACT: Robin J. Erdmann, ASA MRICS MAI Tel: 707 -766-8413

Thursday, June 11 Candidate’s Night

One of our most popular meetings, it always fills to capacity. Mark the date and RSVP early for this one!

ASA 2009 Conference in Orlando in July

Hold the Date! 2009 International Appraisal Conference July 12-15, 2009; Renaissance Orlando Resort at Sea World, Orlando, Florida. Budget & Finance, Governors’ Meeting & Committee Meetings preceding, July 10-12

Wayne Kompare will conduct a Wine tasting and discussion Monday July 13 at 5:30 at the International Conference titled "Great Wines to Fit Your Wallet. Wayne will be offering 6 highly rated wines (reds and whites) from two of the hottest wine regions in the world: Argentina and Spain. Only 100 seats are open for this multidisciplinary presentation. Cost is $35.00.

Check the website at www.appraisers.org to view the programs pertinent to the various disciplines.

Chapter 2009 Calendar

APRIL 2009

9th (Thurs) Captain Joseph Rodgers – Marine Survey

ASFMRA Spring Outlook
23rd (Thurs) Fair Value Accounting for Appraisers (Tony Correia, ARA and John W. Ross) $175
Hilton Arden West Hotel, Sacramento, CA

MAY 2009

14th (Thur) Chapter Meeting – Gov. Jim Brown, “State of ASA”

21^st Dave Lewis’s, ASA, Zoning & Site Analysis seminar

JUNE 2009

4^th ASA Filoli PP Seminar: “Tastes of the Barons” (tentative)

11^th (Thur) Chapter Meeting – “Candidates’ Night”

JULY 2009

ASA Conference, Orlando FL

· July 10: Budget and Finance/ Executive Committee Meeting

· July 11: Board of Governors Meeting

· July 11-12: Other Committee Meetings

· July 13-15th ASA Conference Ed Sessions

No Chapter Meeting – Join us at Conference!

AUG 2009

13^th (Thur) No Chapter Meeting?

TBA - Leadership Retreat

SEPT 2009

10^th (Thur) Chapter Meeting; Meet your new chapter officers!

OCTOBER 2009

8^th (Thur) Chapter Meeting

4-7 MTS International Conference at Fisherman's Wharf

NOVEMBER 2009

12^th (Thur) Chapter Meeting

DECEMBER 2009

10^th (Thur) Chapter Meeting?

Museum Exhibits:

Palace of the Legion of Honor: located in Lincoln Park near 34th Avenue and Clement Street.

Artistic Luxury: Fabergé, Tiffany, Lalique - February 7, 2009 — May 31, 2009

Waking Dreams: Max Klinger and the Symbolist Print - February 28, 2009 — July 5, 2009

De Young Museum: 50 Hagiwara Tea Garden Drive, Golden Gate Park, San Francisco, CA 94118; 415.750.3600; www.deyoungmuseum.org

Tutankhamun and the Golden Age of the Pharaohs returns to San Francisco 30 years after the blockbuster 1979 exhibition—with four new objects! - June 26, 2009 — March 28, 2010

Warhol Live - February 14, 2009 — May 17, 2009

Yves Saint Laurent - November 1, 2008 — April 5, 2009

Legislative Corner

Appraisal Regulation

By Charles B. Warren, MRICS, ASA-urban real property

Now that we are in the middle of a disaster there is a great hue and cry for regulatory reform. We were here before in the early 1990's. The answer on that occasion was licensing. Licensing did and does have some potential to address the proper evaluation of collateral for loan purposes. In the intervening years, however, it was subject to what is known in political science as "regulatory capture*".

The emphasis in the Cuomo proposal on AMCs to the exclusion of in-house or directly contracted appraisal services does nothing effective to address the inadequacy of appraisal and licensure. It is merely an extreme example of regulatory capture and sows the seed for the next crop of mortgage problems.

After the savings and loan bubble, Congress passed FIRREA (FIRREA). One of its provisions was that appraisals for loan purposes be obtained only by the lender (rather than the borrower) from appropriately qualified and licensed appraisers. Sounds good. Might have even worked.

My comments and observations apply to California. The implementation went fairly smoothly. There wasn't, however, any budget for enforcement for a number of years. The Republican governor appointed an appraiser to head the Office of Real Estate Appraisers. In the late 1990's the Democrat legislature held hearings impugning his competence and integrity. He was removed. The Democrat governor appointed an "acting director" whose experience was in alcoholic beverage control. The acting director addressed one of the legislature's concerns, processing of license applications. While the quality of applicants at the trainee level was pretty abysmal, pass rates on the test at or below 50%, persistence paid. After enough repetitions motivated trainees passed and were licensed. At one point an old friend who worked at OREA said, "The foxes haven't just gotten into the henhouse, they've taken over and established a breeding program." At the height of the bubble over one-third of California appraisal licensees were trainees.

About a year ago the AQB established more stringent educational standards for appraisal licensure. At about the same time the governor, now a Republican again, appointed a permanent director for OREA who had at least some appraisal experience. Obviously, both measures were a bit

belated. That doesn't mean that quality appraisal isn't achievable by these and other related measures**.

The present direction, proposed by Mr. Cuomo and known as HVCC (Home Valuation Code of Conduct), however, is unlikely to succeed. It identifies in-house appraisal and client-appraiser contact as the root of the appraisal quality problem and proposes a (relatively) new intermediary, the Appraisal Management Company (AMC), to separate the institution from the appraiser.

In house appraisal is not necessarily a problem. It is only a problem if the management of the institution is uninterested in a quality appraisal product. At one point in ancient history, the chief appraiser of Wells Fargo Bank was personally wealthy. Between him and his wife they controlled a significant percentage of its stock. He believed in quality and there wasn't anybody in management who could push him around. He was replaced with a sincere young man who was dependent on his salary.

Shortly afterward (1982) 90% of the appraisal staff was laid off. They were empanelled to contract independently for the bank, but to be employed by the borrowers. The explicit reason was to "put them closer to the customer". It took about two years to get most of the bank veterans off the panel. The appraisal department was always part of loan origination. In another case a mortgage company replaced a certified general appraisal licensee with a trainee to review their lending appraisals statewide. The head of underwriting quality control opined that quality control was purely his job. Lessons learned - the in-house appraisal department can produce a quality product. However, it has to be protected, either by the resources and integrity of its chief or some regulatory measure. Making appraisal part of, say, the audit or regulatory compliance departments might help.

In the last decade lenders contracting appraisal services has not been a particular problem because it has been rare. While FIRREA mandated lenders to contract for and obtain their own appraisals, during the last boom mortgage companies asked their borrowers to pay for, sometimes even obtain their own appraisals. Mortgage companies also eclipsed traditional lenders' market share. Attacking the relationship between lender and appraiser is not addressing a problem, but may be creating one.

In the new lending order appraisals will be ordered through appraisal management companies (AMCs). AMCs have no specific regulatory oversight.*** They basically are "black boxes". Appraisal requests are made by the lender. An AMC receives them. Orders go out to selected appraisers. Appraisals come back to the AMC and are somehow transmitted back to the lenders. How is the AMC selected? Could it be simply an off-balance-sheet affiliate of the lender? If not, why not? How are the appraisers selected? Is quality a function of education, experience and licensure, or speedy, reliable agreeability? The appraisal when received back at the AMC is presumably subject to review, also change? If changed, how is that to be supervised and what criteria apply to changes? This leaves out the issue of payment.

At present AMCs take about half of appraisal fees. Appraisers can only do a small finite number of quality appraisals per day and they have overhead expenses. At best, over the long run, appraisal fees might go up a little, but appraisal hourly rates will go down. Good appraisers are probably underpaid for their skills at present. Reducing their potential pay down to the low two-digit numbers is unlikely to attract high quality people to the field or even retain present well qualified people. Those with the ability to do as well or better in other fields will do so. I'm told that Pier 39, a local San Francisco tourist spot, is paying $15 per hour for clowns to tie balloons into swords and animals for kids. Of course there is presently a pool of under-qualified and underemployed appraisers who entered the field in the last five or ten years who might find those wages attractive. They might have worked in situations during the bubble where their take-home was no better.

Unfortunately the quality of their work is now pretty well known to be minimal. But you get what you pay for.

What the AMC does provide is known in intelligence tradecraft as a "cut-out". The next time that appraisal quality is an issue, the lenders can simply point at the AMC and say, "I relied on them!" The AMC can then try to let it roll downhill to the appraisers. The appraisers, who may not have been contracted at all if they hadn't been willing to cut corners or even fabricate information, also may have gone back to selling used cars or working in telemarketing. The net effect is to give the lender "plausible deniability". As with the present situation, those who benefited most from creating the problem are absolved of most blame.

If that isn't a case of regulatory capture, it must be one of regulatory blindness.

So, in the brave new world of the AMC important people will be seen to have "done something". That the something they did achieved no positive result won't be obvious for more than one election cycle. The effect of giving savings and loans permission to write commercial development loans (1980-2) wasn't obvious right away either (1989).****

Charles B. Warren, MRICS,

ASA-urban real property

San Francisco

www.charlesbwarren.com

415.433.0959

*http://en.wikipedia.org/wiki/Regulatory_capture

** Simply requiring lenders to assign appraisals to appropriately licensed people whose office is proximal to the appraised property in numeric order of their license would remove lender pressure from the appraiser.

*** 2nd definition may be more appropriate - http://www.merriam-webster.com/dictionary/oversight

****The S&L Crisis: A Chrono-Bibliography - http://www.fdic.gov/bank/historical/s&l/index.html

In Memoriam

James H. Schilt, ASA

James Schilt, ASA, a major contributor and tireless crusader for the business valuation profession, died on March 18, 2009 in his San Francisco home after a long illness. He was 81.

As one of the founding members of the American Society of Appraisers (ASA) Business Valuation Committee in 1981, Jim became synonymous with the work of the Committee for treading new ground and challenging established opinions on the business valuation process. Jim will most likely be remembered by many of his ASA colleagues as the first editor and editor emeritus of The Business Valuation Review. He held this position for almost twenty years from March 1982 to December 2001.

Affectionately known by his colleagues on the ASA Business Valuation Committee as “Dr. Schilt”, Jim was one of the members of the Committee’s Editorial Review Board where he authored numerous articles providing “ground-breaking” business appraisal models and processes that are still widely used by the appraisal community today. His articles were published in numerous technical journals, including those of the ASA, CFA and others. As editor, Jim was an innovative force in providing opportunities for younger appraisers and especially women who were not part of the early business valuation process, to contribute their knowledge and expertise to The Business Valuation Review’s content. Jim was also an active member of the Valuation Roundtable of San Francisco and continued in the capacity as member of the ASA San Francisco Bay Area Chapter until his death.

Born in Lake Oswego, Oregon, Jim served in the US Merchant Marine on victory ships in the Atlantic at the end of World War Two. He also served in the US Army in Germany where he met his wife, Franca, a native of Italy. While living in Europe, Jim attended Trinity College, part of Cambridge University in England and became a non-resident member of the Oxford-Cambridge Club in London. Jim has been a generous donor to the 1209 Society, established by Cambridge in America to recognize the generous donations of benefactors living in the United States. After moving to the San Francisco Bay Area with his wife, Jim graduated from Stanford University in 1951 with a BA in Economics. Before beginning his career in business appraisal as a sole practitioner, Jim worked as a financial analyst for several San Francisco-based boutique investment banks.

A peerless raconteur, Jim will always be fondly remembered for his love and devotion to his wife Franca, his always impeccable dress, his extensive photography and antique camera collection and his wide-ranging collection of books. Jim attributed his longevity to “…Bombay Sapphire Gin martinis, a curmudgeonly attitude and lifelong love of his work.”

Jim is survived by a brother, Steven Schilt of Newport Beach, CA and a niece, Sarah of Ontario, Canada.

Guest Article

WHEN GOOD LEASES GO BAD:

WORKOUT STRATEGIES FOR LANDLORDS AND TENANTS

By Douglas Van Gessel, Esq., and Katharine E. Allen, Esq *

With consumer confidence plunging and companies significantly reducing their work- forces, the remainder of 2009 will likely bring a rise in troubled commercial leases. Office and retail tenants alike will find themselves burdened with either too much space or rent that exceeds current market rates. Either way, more and more tenants will begin contemplating lease restructuring in the upcoming year.

The simplest solution for a tenant seeking to reduce its occupancy costs is to find a subtenant. However, in the current market, subleasing may not be feasible for most tenants due to an increase in supply and a decrease in demand for commercial space. Accordingly, tenants may seek more creative alternatives to alleviate their lease burden. Prior to taking action, the initial question a tenant must ask is whether the tenant and its business are sustainable in the long run. The answer to this question not only dictates the tenant's strategy in approaching its landlord, but also the options available to it.

Strategies for a Non-Sustainable Tenant

If, after careful consideration, a tenant determines that its business is not sustainable, reorganization or even dissolution is likely inevitable. This tenant will probably first attempt to reorganize or dissolve its affairs on its own, which, among other things, will require negotiating the early termination of its commercial leases. If all else fails, this tenant will file for bankruptcy.

If the tenant knows its business is going to fail, its first course of action will likely be to approach its landlord about voluntarily terminating its lease. With the threat of bankruptcy looming, a landlord may be more inclined to discuss this option in order to avoid receiving little or no lease damages in a bankruptcy liquidation. A lease termination agreement generally provides for the early termination of a lease in exchange for a lump sum payment to the landlord equal to a few months' rent due under the lease plus any unamortized portion of tenant improvement and brokerage costs incurred in connection with the lease. Additionally, the parties may wish to address other issues in the lease termination agreement, such as what happens to any rent already past due, the security deposit, the condition of the premises upon surrender, and the removal of tenant improvements or furniture. A savvy tenant will also bargain for a general release of all claims and obligations under its lease (including California Civil Code Section 1542 language) as part of any lease termination agreement.

A key obstacle a tenant may encounter in negotiating a lease termination agreement is its ability to make a termination payment. The termination payment is generally made upon termination in a lump sum cash payment. In many instances, the security deposit held by the landlord can be used to offset the amount of the termination payment. However, if the tenant cannot make a lump sum cash payment even with the application of the security deposit, the parties may consider an installment payment arrangement. Nonetheless, a landlord will likely have concerns about such an arrangement given the uncertainty over the continued existence of the tenant and its ability to make those payments when they come due. The landlord might suggest that any such payment obligation be secured by a letter of credit or promissory note secured by additional collateral.

While the threat of bankruptcy may give the landlord an incentive to reach an agreement for the early termination of a lease, this threat is somewhat of a double-edged sword. Landlords should be aware that if the tenant ends up filing for bankruptcy even after its initial restructuring or dissolution attempts, any termination agreement entered into within ninety days prior to the tenant filing for bankruptcy risks being treated as a preferential transaction under the U.S. Bankruptcy Code. As a result, a landlord could end up being bound by the termination agreement but having to return any payments made under the agreement within such ninety day period to the bankruptcy estate. Therefore, any lease termination agreement should state that it unwinds and the parties retain their existing remedies if the agreement is deemed a preference in bankruptcy court.

If a failing tenant is not successful in negotiating a lease termination agreement with its landlord, its only other option to rid itself of its lease may be through bankruptcy. If the tenant files for bankruptcy, the bankruptcy trustee, upon request by the tenant within 120 days after the bankruptcy petition (subject to extension for an additional 120 days) has the power to reject the lease, thus effectively forcing the landlord to accept termination. If the lease is rejected, Section 502(b)(6) of the U.S. Bankruptcy Code caps the amount of damages recoverable by the landlord to the greater of (a) twelve months rent or (b) fifteen percent of the rent for the remainder of the lease term, not to exceed three years. The amount of any security deposit or draws made on any letter of credit held by the landlord will be applied to offset these capped damages. However, the stark reality for a landlord is that it will likely not receive its statutory damages unless there are sufficient funds in the bankruptcy estate to pay all of the tenant's unsecured creditors.

Strategies for a Sustainable Tenant

If a tenant's business is sustainable in the long run and it simply suffers from a temporary decrease in profitability, the goal of both the landlord and the tenant should be to arrive at some compromise to ensure that the lease also remains sustainable. In this instance, bankruptcy is not an effective option and, in any event, the tenant will most likely want to keep the leased space with a few adjustments. Thus, the tenant's primary objective will be to reduce the financial burden of the lease by negotiating a temporary reduction in the rent in exchange for other concessions.

One approach is to reduce the amount of space leased and/or relocate the premises to a less desirable or less improved location in the building. This is especially appealing to the landlord if it frees up a full floor of space, for example, to lease to a new tenant.

Another approach is to alter the amount of rent due under the lease, either by unconditionally reducing the rent per square foot, declaring a lease "holiday" for a discrete period of time, or deferring a portion of the rent until later during the term of the lease. It is not uncommon for the parties to agree to extend the lease term in exchange for the rent reduction under the theory that by granting the rent reduction the landlord is creating a more viable tenant the landlord will want to lease to for a longer period of time. However, a landlord will want to condition any such rent modification on the tenant not defaulting in the future. Upon any future default, the tenant's previous higher rental obligations return.

A landlord's rental accommodations typically come at a price to the tenant, however. Landlords will typically look to strip the lease of: (i) existing economic advantages, such as undisbursed tenant improvement allowances or impending free rent or moving allowances; (ii) tenant options, such as early termination rights, expansion and/or extension options; and/or (iii) generally favorable provisions, such as representations and indemnities given to the tenant in a more generous leasing market. In addition (or in the alternative) to such provisions, landlords might ask for additional lease guaranties or increased security deposits (or a security deposit in the form of a letter of credit instead of cash), or introduce net worth, income flow or other financial tests to be met in order for the tenant to expand the premises or extend the lease, or possibly as a covenant allowing the landlord to terminate the lease if such financial test is not met by the tenant. More aggressive landlords might also ask for a stipulated judgment for possession of the premises, avoiding the eviction process in the event of a subsequent tenant default.

Finally, sometimes a landlord will ask for — or a tenant will offer — warrants in the tenant's company at an attractive "strike price" under the theory that a landlord who grants a tenant rental concessions is much like an economic partner in the company who deserves a piece of the "up side" created by those concessions.

The foregoing overview is not an exhaustive list of all possible options available for dealing with troubled leases. It is merely meant to outline several ways to address leases involving too much space or that are above market rents. The best available option will vary based on individual circumstances, and landlords and tenants will want to discuss all of these options with experienced counsel.

*Doug Van Gessel is a partner with Sheppard Mullin Richter & Hampton in San Francisco. His practice focuses on real estate and business transactions. He can be reached at dvangessel@sheppardmullin.com. Katey Allen is an associate at Sheppard Mullin Richter & Hampton in San Francisco. Her practice emphasizes real estate and land use. She can be reached at kallen@sheppardmullin.com.

This article is reprinted from The Marin Lawyer with the approval of the authors

Tech Tips

OK, this is a Tech Tip only in that it technically applies to earning the 20 or so credit hours per year of continuing education required for ASA reaccreditation. Did you know that you receive 1 credit hour for each ASA Chapter meeting you attend?

Yes? Well, did you know that if you attend a second chapter meeting in the same fiscal year you receive 4 credit hours for it? That makes 5 big credit hours for attending two chapter meetings. Now, that’s worth the effort. I guess the theory is that if you attend two meetings and benefit from the networking, the program and the camaraderie, you will want to keep coming back. And we hope you do! Be sure you sign the roster at each meeting, because it is turned in to ASA for immediate posting to your education history.

NorCal Officers

L to R: Bob Lentz, Treasurer, Gil Mitchell, Secretary; Robin Erdmann, Chapter President, Jim Brown, Region 5 Governor, Will Schnitzer, Immediate Past Chapter President, Doug Baxter, Chapter Vice-Chair

Chapter officers:

Chapter President Robin J. Erdmann, ASA (RP)

Chapter Vice President Douglas S. Baxter (PP)

Chapter Secretary Gil Mitchell, ASA (MTS)

Chapter Treasurer Robert P. Lentz III, ASA (BV)

Chapter Past Chair William C. Schnitzer, ASA (RP)

Discipline Directors and Associate Directors:

Business Valuation    Jim Schilt, ASA               /    Alan Karbousky, ASA
   Gems & Jewelry     Nancy Stacy, ASA          /              Maury Woulf
                             Master Gemologist Appraiser
                  MTS     Gil Mitchell, ASA             /                           tba
Personal Property     Roger Rapport, ASA         /                           tba
      Real Property     Will Schnitzer, ASA         /                           tba