Determination of Best Secondary Use

The primary use of facilities located on the Site is the transmission and distribution of electricity in the City of Hawthorne. SCE's aboveground electric lines crossing the Site, and their associated restrictions and height clearances limit the potential secondary uses. SCE states that its objective has been to select secondary uses for its property that provide the highest revenue consistent with its utility safety and reliability obligations, and that it has determined that the VOA project offers the highest potential revenue. The Site is being developed as a vehicle storage lot in conjunction with the development of an adjacent Volkswagen dealership. To evaluate the rental potential of the Site, SCE analyzed the rent paid for comparable parking and storage facilities in and around the Site. SCE believes that the rent it will receive offers the highest level of potential revenue, falls within the acceptable market range, and is in line with revenues it receives from similar Commission-approved transactions.