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Attachment 1 and tradefixtures. The appraisal assumes the tenant fixtures and trade fixtures remain fullyinstalled and continue in the existing beauty salon use. Manyofsubject tenantimprovements and trade fixtures are items that are attached to the land and building in a permanentmanner. In some cases, the subject trade fixtures have the physical characteristics of real estate improvements. Thus, it could be argued that the landlord willown thesetenant improvements and trade fixtures at the end of the tenant’s leasehold. The Salon 27 business is currently on a month-to-month lease, with the City as 1 landlord. It is understoodthat the Salon 27 is a profitable business. The appraisal is based on theassumption that had the Citynot acquired the retail center property, then Salon 27would have continued to occupy the subject spaceuntil the subject tenant improvements and trade fixtures were attheends of their usefullives. Thisis an extraordinary assumption that may have a positiveimpact on the estimate of fair market value. Those itemscategorized hereinas tenant improvements essentially consist of the interior finishes and interior wall constructions. Theseincludethe suspended ceiling, painted sheetrock wallcovering, floor covering, baseboards, ceiling trim, and interior wall constructions. The tenant improvements also include light fixtures and electrical outlets that provide general illumination and electrical service withinthe space. Many of the tradefixtures could also be categorizedas tenant improvements (interior finishes) but, for purposes of thisassignment, are categorized separately as trade fixtures. These items are specificto the existing beauty salon use. The trade fixtures include lighting soffits that house can-typelightfixtureswhich, in turn,specifically illuminate the reception desk and the 12 styling stations. The trade fixturesalso include thoseelectrical outlets whichspecifically provide power to the 12 styling stations and the six wall-mounted hair dryers. The trade fixtures also include the interior bracingsystemsthat support the hair dryers. Such trade fixtures also include the plumbing systems that support the four hair- washing (shampoo) stations. The plumbing systems include hotand cold-water supplylines and wastewater drainage. Theimmovable trade fixtures also include built-in displaycases behindthe reception desk, stenciled lettering in the production area, andlettering on the storefront glass. 1 Based only on discussions with the tenant. Ihave not examined any financial records as part of the appraisal process. - Page 2 - Qbhf!:6!pg!385