Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.
A G E N D A
JOINT MEETING OF THE
GONZALES CITY COUNCIL AND
GONZALES SUCCESSOR AGENCY
CITY COUNCIL CHAMBERS – 117 FOURTH STREET
GONZALES, CA 93926
MONDAY, OCTOBER 6, 2025
6:00 P.M.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
1. ROLL CALL- City Council/Successor Agency
Mayor Pro Tem/Vice Chair Liz Silva, Council/Agency Member Scott Funk, Council/Agency Member Lorraine Worthy, Council/Agency Member Maria Orozco, Mayor/Chair Jose L. Rios
Successor Agency Item
PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/87020263943 or call 1 (669) 900-6833 and use Meeting ID: 870 2026 3943.
If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed two minutes for your comments.
If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on the day of the meeting to the City Clerk at [email protected]
PRESENTATIONS
2. Salinas Valley Health
3. Certificate of Recognition - American Legion Auxiliary Girl State Program
4. Community Center Complex Progress Report
BUSINESS FROM THE PUBLIC
5. Business from the Public not on the Agenda; any member of the Public may address the Council/Agency for a period not to exceed two (2) minutes on any subject not on the Agenda.
The Council/Agency will listen to all communications but may take no action.
*
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.
CONSENT AGENDA
All matters listed under the Consent Agenda are considered routine by the City Council and will be adopted by one action of the Council unless any Council Member has a question or wishes to make a statement or discuss an item. In that event, the Mayor will remove the item from the Consent Calendar for separate consideration.
6. Approve the Joint City Council & Successor Agency - Regular Meeting - September 15, 2025 Minutes
7. Approve City Accounts Payable Warrants #52637-52782
8. Consider Closure of City Offices for the Winter Holidays
REGULAR AGENDA
9. Presentation on City Property Appraisals
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Provide direction regarding the potential sale of certain City properties
10. Updates on Wastewater System Projects
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Receive presentation
GONZALES YOUTH COUNCIL UPDATES
11. Oral Communications
BUSINESS FROM CITY COUNCIL
12. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
b. Mayor Selection Committee
c. Salinas Valley Recycles
d. Measure K Oversight Committee
13. Oral Communications
BUSINESS FROM CITY MANAGER
14. Oral Communications
ADJOURNMENT
In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (831) 675-5000. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (CFR 35.102-
35.104 ADA Title II). This is a public meeting and as such, can be seen live by people present or online and is being recorded; therefore; anything you say or do here is public information. The recordings are available online.
*
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.
I, Mary Villegas, Deputy City Clerk of the City of Gonzales, do hereby certify that a copy of the foregoing Joint City Council/Successor Agency Regular Meeting Agenda was posted at City Hall, Council Chambers, and on the City’s website by Thursday, October 2, 2025, at 5:00p.m. 10/02/25
Mary Villegas Date
Salinas Valley Health
Allen Radner, M.D.
President / Chief Executive Officer
Gonzales City Council Meeting
October 6, 2025
AGENDA
ITEM
Packet Pg. 4
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) 2 2
Publicly-Elected Board of Directors
Local Healthcare District
Healthcare districts are public entities that provide
community-based healthcare services to residents.
• Quality Healthcare
• Delivered Locally
• For Everyone
Packet Pg. 5
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) 3 Salinas Valley Health
Medical Center
Hospital Based Outpatient
Department (HOPD)
Salinas Valley Health Clinics
Primary Care and Specialty Clinics
Population Health Division
SVH Clinics Outpatient Imaging
Monterey Peninsula Surgery Center
Doctors on Duty
Salinas Radiation Oncology
Monterey Bay Endoscopy Center
Hospital Discharges 11,423
Total Outpatient 204,669
ED 63,251
Mammography 23,073
SVH Clinics 700K
Primary Care 180,000+
Adult and Pediatric Diabetes Center 19,000+
Oncology Clinic 15,000+
Cardiology Services 74,000+
Licensed
Packet Pg. 6
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) 4 Payer Blind
Medical Center
Clinics
34 Specialties
~200 Providers
25 Sites
650,000+ Visits
Revenue $87M
“Safety Net”
Packet Pg. 7
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Taylor Farms Family Health & Wellness Center
(A Hospital-Based Rural Health Care Clinic)
Packet Pg. 8
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) MediCal (CCAH) 195,000
Medicare 74,000
Commercial 105,000
Uninsured 52,000
HR1
1.1T out of Medicaid in next 10 yr
CBO – 11-13M will lose insurance
CCAH 20-25%
Access – work requirements, redetermination
Supplemental funding
Non-HR1
Medicaid DSH
California – UIS changes
Sequestration- Medicare 4% annual cuts
($500B over 8 years) (1-2026)
Federal Subsidy of Exchange – 12-31-26
600K in California lose coverage; increased
premiums
OHCA
Challenges
Packet Pg. 9
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Consequences:
1. Increased Numbers of Uninsured
2. Deferred care / prolonged and more complex
needs
3. Reduced revenue from insured (governmental and
commercial)
4. Uncertain Viability of Healthcare Systems in our
County
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Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) The Salinas Valley Health Mobile Clinic is dedicated to improving the health of our community by increasing access to care for those living in medically underserved areas, providing preventive and primary care where it is needed Mobile Clinic
SVH Response
Packet Pg. 11
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Taylor Farms Family Health & Wellness Center
Packet Pg. 12
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Packet Pg. 13
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) PrimeCare Extended Hours Clinic
Effective January 2025, PrimeCare Salinas
offers after hours coverage for urgent care
/ same day visits for established
PrimeCare TFFH&WC patients
Urgent Care Clinic at PrimeCare:
Monday - Friday: 5pm-9pm
Saturday: 9am-6pm
Sunday: 10am-6pm
Packet Pg. 14
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Orthopedic Urgent Care Orthopedic Urgent Care Orthopedic urgent care open for all community members including
sprains, strains, sports injuries,
acute pain and fractures.
Work related injuries are not
treated.
Orthopedic Urgent Care Clinic:
Monday - Friday: 8am-5pm
Packet Pg. 15
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Telehealth After Hours Care
Effective March 2025, SVHC expanded
services to a telehealth provider
network for urgent care visits for all
SVHC patients via MyChart M-F: 5-8 pm
Saturday and Sunday All Day
Packet Pg. 16
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Blue Zones Project
Packet Pg. 17
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Primary Care
• Diabetes
• High Blood Pressure
• COVID/Flu/Strep Test/Pregnancy
• Additional POCT
Simple Urgent Care
• Lacerations
• Sore Throat
• Rashes
• Urinary Tract Infections (UTI)
Health Exams
• Sports Physical
• Annual Physical
Vaccines
• SGF (State General Fund – Flu)
• VFC (Vaccines for Children)
Health education resources
Assistance connecting patients with
resources to treat chronic health
problems
Virtual Visits
Services All services
are free to
patients!
Packet Pg. 18
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Sundays 11am
-2pm (service from March to November)
Salinas Regional Soccer Complex, 1440 Constitution Blvd., Salinas Mondays 3:30pm-7pm
Alisal High School, 777 Williams Road, Salinas
Tuesdays 10am-1:30pm
Walmart, 1800 N. Main Street, Salinas
Tuesdays 2:30pm-6pm
Everett Alvarez High School, 1900 Independence Blvd., Salinas Wednesdays 12pm-6pm
Greenfield Family Resource Center, 493 El Camino Read, Greenfield Thursdays 10am-5pm
MLK Family Resource Center, 925 N. Sanborn Road, Salinas Food Distribution
Food Distribution
Food Distribution
Packet Pg. 19
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Vaccinations Save Lives
Did You Know? • Getting the flu can raise your risk of going to the hospital or even dying from heart problems. In a study that looked at 9,000 people, getting the flu shot lowered the chance of having a serious heart problem by 34%. • Last winter, Salinas Valley Health cared for more than 200 patients who were very sick with the flu or RSV (respiratory syncytial virus). There are safe vaccines that can help protect you or make these illnesses less serious.
Packet Pg. 20
Attachment: SVH Powerpoint (3376 : Sallinas Valley Health) Packet Pg. 21
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) AGENDA
ITEM
4 Packet Pg. 22
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 23
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 24
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 25
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 26
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 27
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 28
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 29
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 30
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 31
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report) Packet Pg. 32
Attachment: Community Center Progress Report (3372 : Community Center Complext Progress Report)
MINUTES
JOINT MEETING OF THE
GONZALES CITY COUNCIL AND
GONZALES SUCCESSOR AGENCY
MONDAY, SEPTEMBER 15, 2025
6:00 P.M.
CALL TO ORDER
The meeting was called to order at 6:00 PM by Mayor Jose L. Rios.
PLEDGE OF ALLEGIANCE
1. ROLL CALL
Attendee Name Title Status
Jose L. Rios Mayor/Chair Present
Liz Silva Mayor Pro Tem/Vice Chair Present
Scott Funk Council/Agency Member Present
Lorraine Worthy Council/Agency Member Present
Maria Orozco Council/Agency Member Present
STAFF PRESENT
City Manager Carmen Gil, City Attorney Christie Crowl (via zoom), Community Development Director Taven Kinison Brown, Finance Director Mike Howard, Executive Assistant to the City Manager/Deputy City Clerk Mary Villegas, Development Services Technician/Administrative Analyst Alejandrina Ponce, Administrative Assistant II Marisol Gomez, Public Works Director/City Engineer Patrick Dobbins, Fire Chief Jason Muscio, and Police Chief Keith Wise.
* Successor Agency Item
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Minutes Acceptance: Minutes of Sep 15, 2025 6:00 PM (CONSENT AGENDA) AGENDA
ITEM
6
PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/87020263943 or call 1 (669) 900-6833 and use Meeting ID: 870 2026 3943. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.
If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on the day of the meeting to the City Clerk at [email protected]
PRESENTATIONS
2. Introduction of New Development Services Technician/Administrative Analyst Community Development Director Kinison Brown introduced new employee, Development Services Technician/Administrative Analyst Alejandrina Ponce.
3. Presentation of Blue Zones Community Certification to the City of Gonzales City Manager Gil introduced Salinas Valley Health Blue Zones Project team who have continued to do great work with Gonzales to try to get us Blue Zones certified.
Kendra Howell, Brenda Cabrera, and Marcos Pulido from the Salinas Valley Health Blue Zones Project, explained what the City had done to get to the certification milestone which included a readiness assessment, being the only certified Blue Zones community designation in the State, and assistance from Salinas Valley Health, Taylor Farms, and Montage Health, and the City of Gonzales. They elaborated on the work they did in the different areas and Gonzales being a role model for engagement and leadership, staff, business owners and residents since 2020; embracing the project and aligning it not only with the City planned projects, but how it could continue its commitment to a vibrant and healthy community. They mentioned Gonzales exceeded their goals across all sectors for certification, measurement, work sites, schools, food, retail, policy and most importantly, community engagement.
They presented the Blue Zones Community Certification to the City of Gonzales, and took photos with the Council.
4. FY 2025-2026 Gonzales Youth Council Presentation
Recreation Coordinator and Gonzales Youth Council Advisor Olmedo introduced the item.
The following members introduced themselves: Youth Commissioners Shelby Anderson, Orlando Rodriguez Perez and Ricardo Rodriguez Perez. Youth Council Members Adriel Lambert, Aiden Borongan, Silvestre Arellanes, Melanie Ochoa and Brandy Ochoa Valdez.
The Youth Council presented the Gonzales Youth Council purpose, empowering youth advocacy and voice, working together and communicating, leadership skill improvement and responsibilities, leadership training, and shared several pictures of their GYC Summer Training and experience they gained. They also elaborated on the next steps and future projects and recommendations and expressed their gratitude to the Council and City staff for making their Packet Pg. 34
Minutes Acceptance: Minutes of Sep 15, 2025 6:00 PM (CONSENT AGENDA)
experience possible from meeting with many of them to enhancing their understanding in local City government, and the different aspects that impact the City.
5. Emergency Alert System
Fire Chief Muscio and Recreation Coordinator Olmedo presented information on the Everbridge City Wide Alert System. They explained the number of contacts uploaded, usage on nonemergency notifications, messages from the State, outreach plan and registration information, emergency alerting notifications, and ability to send messages to all City employees.
City Manager Gil added that staff was working with FEMA to get their clearance, and then test the system internally on a monthly basis. She elaborated on the type of messages that would be sent, and staff also had a list of senior citizens who require special needs in case of an emergency that will be updated periodically.
BUSINESS FROM THE PUBLIC
6. Business from the Public not on the Agenda; any member of the Public may address the Council for a period not to exceed three minutes on any subject not on the Agenda. The Council will listen to all communications, but may take no action.
Rosa Rodriguez, 307 Ayrshire Way, thanked Youth Council for their great presentation; expressed her excitement about the text messaging alert system which she felt it was very important in the community; and her participation with Blue Zones on nutrition and physical activity.
Deputy City Clerk Villegas read comments received from Andrew Brown via email to [email protected] on Monday, September 15, 2025 at 8:00am and read as follows:
“Good evening, Mayor and Council. The Teen Innovation Center will only be a safe place for youth if it is consistently open as a true drop-in space. I’m concerned that relying on three program partners may result in sporadic, one- or two-hour activities that are inconsistent and could fade away over time. That model leaves teens without a dependable place to go after school. Right now, City recreation resources mainly serve the easiest groups to reach-young elementary students and seniors-while teens remain underserved. The current $250 entrance fee also filters out the very youth who need support most; many do not have adults able to pay. I’m asking the Council to ensure: Posted reliable hours (for example, school days into the evening and Saturdays), with City staff on site so the doors stay open regardless of partner programming.
Safety framework: post the rules, train staff, enforce firmly and consistently, and no leniency for misconduct. Full staff support: there is a reason the current rec staff doesn't serve middle schoolers and high schoolers. Sadly, the reason is reasonable. Parent involvement mandate. The Recreation Department isn’t a substitute for mental health counseling or family support. Parents should take the responsibility rather than shifting their burden onto staff. Most youth are intolerable and most parents are negligent in such behaviors.”
CONSENT AGENDA
7. Approve the Joint City Council and Successor Agency - Regular Meeting - September 2, 2025 Minutes
8. Approve City Accounts Payable Warrants #52595-52635
9. City Manager’s Report
10. Community Development Department Activity Report
11. Community Engagement & Recreation Departments Activity Report *
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12. Fire Department Activity Report
13. Police Department Activity Report
14. Public Works/City Engineer Department Activity Report
15. Consider Approval of an Agreement with the State of California – Office of Traffic Safety (OTS) for work and materials in the amount of $30,000 for the Selective Traffic Enforcement Program (STEP); and authorize the City Manager to Sign it
16. Consider Approval of a Consulting Services Agreement Between the City of Gonzales and Michelle Slade, C4 Consulting LLC. for Rendering Services that Support Youth Leadership Development; and Authorize the City Manager to Sign it
17. Consider Approval of Resolution No. 2025-69, A Resolution of the City Council of the City of Gonzales Awarding the Fifth Street Truck Ban Project to Chrisp Company and Authorizing the City Manager to Execute a Contract with Chrisp Company in the Amount of $130,000 which Includes a $8,564 Contingency for Unforeseen Field Conditions
18. Consider Approval of Resolution No. 2025-70, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to Sign a Consultant Services Agreement Between the City of Gonzales and EMC Planning Group for the Preparation of an Environmental Impact Report (EIR) for the Puente Del Monte Specific Plan
19. Consider Approval of Resolution No.2025-71, A Resolution of the City Council of the City of Gonzales Authorizing the Execution of a Memorandum of Understanding Between the City of Gonzales and the Painters and Allied Trades District Council 36 on behalf of Local Union #1991 of the International Union of Painters and Allied Trades AFL/CIO, for the period of January 1, 2025 through December 31, 2026
RESULT: APPROVED [UNANIMOUS] Consent Agenda Items 7-19
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Maria Orozco, Council Member
AYES: Jose L. Rios, Liz Silva, Scott Funk, Lorraine Worthy, Maria Orozco
REGULAR AGENDA
20. Consider 1) Waiver of Second Reading, Read by Title Only, and Adopt Ordinance No. 2025-148, An Ordinance of the City Council of the City of Gonzales Approving the Pre-Zoning of the Vista Lucia Project Area to Zoning Districts as Designated in the Vista Lucia Specific Plan; and 2) Waiver of Second Reading and Read by Title Only Ordinance No. 2025-149, An Ordinance of the City Council of the City of Gonzales Approving a Development Agreement by and Between the City of Gonzales and Cielo Grande Ranch, LLC Relative to the Development Known as Vista Lucia Staff Report: Community Development Director Kinison Brown presented the staff report.
Public Comment: Deputy City Clerk Villegas read comments received from Andrew Brown via email to [email protected] on Monday, September 15, 2025 at 8:00am and read as follows: “Good evening, Mayor and Council. I’m glad to see no high-density units as LandWatch suggested. Michael DeLapa is a blank (he used a derogatory word) -I interned for a terrible website he ran, demanding 10 hours a week for no pay. This looks like another grift. My main concern is speculative purchases of units, similar to what happens in the Bay, or that what we want because it brings in tax dollars? This already happens in Marina-teachers from CSUMB rent from owners despite regulations requiring living there for a minimum of four years. This undermines the intent of those rules and can reduce neighborhood stability and community engagement. Our youth grow up in Gonzales and don’t come back because there’s nothing to come back to: housing is priced up, wages lag, the Teen Innovation Center isn’t yet a reliable drop-in space, and non-local operators mark up basic services. If we want our kids to return as Packet Pg. 36
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successful adults, we need stability, affordability, and places that actually stay open. I assume the current population doesn’t contribute enough. Every time a senior dies, a single-family house turns into an 18-unit apartment. Unregulated, untaxed sheds-called “houses”-catch fire, and the tax-funded fire department shows up.”
Council Discussion: There was none.
RESULT: APPROVED [UNANIMOUS] Ordinance No. 2025-148
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Liz Silva, Scott Funk, Lorraine Worthy, Maria Orozco RESULT: APPROVED [UNANIMOUS] Ordinance No. 2025-149
MOVER: Liz Silva, Mayor Pro Tem
SECONDER: Scott Funk, Council Member
AYES: Jose L. Rios, Liz Silva, Scott Funk, Lorraine Worthy, Maria Orozco
BUSINESS FROM CITY COUNCIL
21. City Council Board/Committee Reports
a. League of California Cities Monterey Bay Division
Mayor Pro Tem Silva reported on the Division meeting she and the Mayor attended in Hollister and Supervisor Lopez was the guest speaker. She mentioned that Deanna Sessums informed everyone that the payment for the meeting dinners were going to be incorporated into the annual dues for each City. Mayor Rios reported Seaside Mayor Oglesby was the new Chapter's President.
b. Association of Monterey Bay Area Governments
Council Member Funk reported on the 2050 Metropolitan Transportation Plan update which staff will bring back in early 2026 for adoption. c. Monterey Salinas Transit
Council Member Worthy reported on their meeting last Monday where they announced they had 13 small buses that they would be retiring; informed of the new transportation company; and their new Counsel out of San Francisco.
22. Oral Communications
Council Member Orozco announced she would be traveling to Guanajuato tomorrow and be back Sunday, and the Annual St. Theodore’s Church Carnival will be on September 28th.
Council Member Funk followed up as part of the AMBAG update, that he was also the CalVans Regional Director and represented the tri-county area, and in relation to the MST buses, CalVans have now the first non Ag Van since Covid as part of the transportation system.
Mayor Pro Tem Silva reminded the residents that the applications for the City’s Senior Rebate Program need to be submitted by the first part of November but encouraged everyone to get them done by the end of September. She also announced that sadly the Gonzales Football team didn’t take the megaphone but played a great game. She announced the Senior Lunch Program this Thursday, September 18th at St. Theodore’s Parish Hall at 11:00am. She also reported that Salinas Valley Recycles was actively recruiting for the General Manager’s position and she looked forward to being interviewed by the recruiter next week via zoom.
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Council Member Worthy noted she would be having surgery on November 18th and would like to be present for the Community Center grand opening so she wanted to ask if staff could keep that in mind since it would probably be around that time. She elaborated on her Facebook post where she had a couple of people who were extremely belligerent to her and she had never experience that in her life to the point that her son suggested to call the police. She took the both of the posts off because she was so shocked by the whole thing and didn’t care what side people were on but she wanted everybody to be kind. She also elaborated on another incident that happened today at the clinic regarding a woman that tried to start an argument with her and told her she didn’t want to engage with her. She tried to be respectful to everyone and hoped everyone else did that especially because of the very hot temperature right now in our country.
Mayor Rios asked for the status on the petition to get the residents on the north side of town sign regarding the disgusting odor. He asked if anyone had started the petition and if not, he was willing to volunteer his Saturdays to knock on doors.
City Manager Gil mentioned it hadn’t been brought up to her attention about anyone starting it other than there had been a lot of talk about it. She said she would have to check with our City Attorney if the City could actually lead that.
Mayor Rios thanked staff for getting the signage item going under the consent agenda item, and couldn’t wait until the Chief could start issuing ticket after ticket to the folks coming off the freeway. He elaborated on a semi trying to make a left turn and the times it took to fit around. He appreciated what all the Ag companies did for us, but we've given them options such as La Gloria Road and they can come down Alta Street, so there's absolutely no need to come on Fifth Street with all the traffic from the school kids coming through there.
BUSINESS FROM CITY MANAGER
23. Oral Communications
City Manager Gil announced the Relay for Life event this Saturday, September 20th at 4:00pm and some City staff will be out there supporting cancer research. For registration information, people can find the QR code on social media and also in the City Manager report. She announced the Veterans Day banners registration will start opening up later this week and the plan was to do the same thing as last year. She also announced our Fall Trunk or Treat which will be a combination with the Halloween Movie Night on October 25th at Centennial Park. She also addressed public comments received earlier about an entrance fee to the Community Center. She clarified the City did not have an entrance fee established yet or anything of the like, and at this point we're still exploring partnership opportunities and gearing up some programming, but there is no established registration fee at this point.
Fire Chief Muscio extended an invitation to the Council and public on the new Fire Engine Dedication Ceremony this Thursday at 3:00pm at the Fire House.
Community Development Director Kinison Brown reported on the housing list staff prepared of people interested in housing since the approval of the project.
Mayor Rios asked Council Member Worthy if she could attend the TAMC meeting as his alternate on September 24th at 9:00am since he had an appointment at Standford that day.
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ADJOURNMENT
RESULT: APPROVED [UNANIMOUS] Ordinance No. 2025-149
MOVER: Scott Funk, Council Member
SECONDER: Liz Silva, Mayor Pro Tem
AYES: Jose L. Rios, Liz Silva, Scott Funk, Lorraine Worthy, Maria Orozco The meeting was adjourned at 7:13 PM.
ATTEST:
Mary Villegas, Deputy City Clerk
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ITEM
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Attachment: Warrants #52637-52782 (3378 : Approve City Accounts Payable Warrants #52637-52782) City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: October 6, 2025
FROM: Carmen Gil, City Manager
SUBJECT: Closure of City Offices for Winter Holidays
RECOMMENDATION
Staff recommends the City Council authorize the City Manager to close City offices from December 24, 2025, through January 2, 2026.
BACKGROUND
The Christmas holiday falls on Wednesday this year. The approved holiday schedule lists Christmas Eve, Christmas Day, and New Year’s Day. December 26
th, 29th, 30th, 31st, and January 2nd would be normal
workdays. Scheduling staff holiday vacation days can be a challenge given the small staff at City Hall.
The last few years, City Hall has been closed the week between Christmas and New Year’s Day without much inconvenience to the public. Utility due dates were changed, and the public was notified.
Employees have taken vacation time off during previous closures. Emergency services and shift employees remained on the job during office closures.
When staff requests City Hall closure, the Police Department office is also closed. However, the staff on duty are still working.
REVIEW AND ANALYSIS
Staff scheduling would be greatly improved if everyone is able to take holiday vacation at the same time.
Some employees will use compensation time earned for overtime, while others will use vacation time for the four days requested this year. Sick time will not be allowed.
AGENDA
ITEM
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Some staff will take the opportunity to clean and clear files preparing for 2026. Staff will check the main office phone messages daily and respond to inquiries.
Public Works standby personnel will handle utility connects and disconnects during this time.
The utility due date would normally be December 23
rd. Staff moved the due date to Monday, January 5,
2026. This change in normal operations would be communicated on the previous month’s utility bills, and other means of outreach available like the Kiosk program and website.
If the City Council approves this holiday closure, staff will receive notice as soon as possible.
Staff absences on Monday, January 5, 2026, after a week off, would require a doctor’s excuse.
All City offices would be closed if this is approved. This closure would not affect Police, Fire or Public Works emergency response.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: This approach to the holiday vacation time is centered on a family-friendly work environment. It also supports a reduction of liability of time on the books by encouraging staff to take their vacation time. Staff is still committed to providing quality service.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: This request will not increase cost. This use of resources is a coordinated effort to continue providing excellent services while improving employee vacation scheduling.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: This program is cost-effective use of employee hours. Vacation time accumulates and there is limited time to coordinate coverage while others maintain core functions. It also helps us reduce liability by encouraging employees to take their accrued time.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: There is no cost to this program and vital services continue.
ALTERNATIVES
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Alternative 1. The City Council could determine this closure is too disruptive to the public and deny the request. Staff will coordinate holiday vacation requests should this alternative be chosen.
Alternative 2. The City Council could modify the request and maintain some staff at City Hall to keep the doors open. Staff will coordinate efforts should this alternative be chosen.
BUDGET IMPACT
There is no budget impact for this closure.
CONCLUSION
Staff recommends the City Council authorize the City Manager to close City offices from December 24, 2025, through January 2, 2026.
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City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: October 6, 2025
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Presentation on City Property Appraisals
RECOMMENDATION
Staff recommend that the City Council provide direction regarding the potential sale of certain City properties.
BACKGROUND
The City owns a handful of properties including City Hall, Police Station, Fire Station, Council Chambers and parcel associated with the City water and sewer systems. Earlier this year, the Council directed staff to conduct market rate appraisals for City-owned facilities for the potential sale and right sizing leases.
Staff engaged Piini Realty to prepare Market Value Appraisals for the following properties:
Name Address
1 Canyon Creek Park Phase 2 No address
2 Venice Way Park (Cipriani Subdivision) 469, 473 and 477 Venice Way 3 MAOF Child Care Facility 225 Elko Street
4 Old Medical Building 113 Fourth Street
AGENDA
ITEM
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Some background on these properties is:
1. Canyon Creek Park Phase 2 – This 3.0-acre site was provided to the City as part of the Canyon Creek Subdivision. It’s adjacent to the existing Canyon Creek Park but on an upper bench of land. Over the past ten years, staff submitted several grant applications to construct ball fields and other amenities that unfortunately were unsuccessful. It’s not an ideal location for a park due to the cost to extend water, sewer and electric utilities to the site. Staff recently engaged a landscape architect to install additional picnic tables, trees and other amenities to the existing park to further activate it. However, with potentially new parks and open space coming as part of the Vista Lucia Project, converting this land into a park is not cost effective.
2. Venice Way Park – The City came into owning the three parcels that make up Venice Park in the Cipriani Subdivision as the original developer defaulted on paying the property taxes for several years. These parcels were always planned to be homes.
3. MAOF Child Care Facility – The building has under a long-term lease to the Mexican American Opportunity Foundation for operation of a Child Care facility. The building is on the same parcel as the Community Pool so selling the building would require splitting the parcel with the City retaining ownership of the parcel containing the pool.
4. Old Medical Building – This property is adjacent to City Hall on Fourth Street. There are three separate spaces in the building with two of them leased to the Gonzales Medical Center and Unilab. Sun Street Centers recently vacated the third space which has been repurposed for the City Emergency Operations Center. As the City owns all properties along the north side of that block of Fourth Street, the City may want to consider holding onto this property until the City needs to construct a larger City Hall as the City grows. Alternatively, the City could decide to build a larger City Hall outside of the downtown area.
The completed appraisal reports are attached to this staff report.
REVIEW & ANALYSIS
The appraisal reports prepared by Piini Realty provided the following Market Value Ranges for these properties:
Name Market Value
1 Canyon Creek Park Phase 2 $105,000
2 Venice Way Park
(Cipriani Subdivision) $180,000 to $195,000
3 MAOF Child Care Facility $500,000 to 550,000
4 Old Medical Building $710,000 to $780,000
It’s important to note that selling City-owned property entails complying with the State Surplus Land Act.
The Surplus Land Act requires local agencies to make their unused property available for affordable housing development before selling. Local agencies must follow a specific process, including providing a notice of availability and engaging in good-faith negotiations, with the California Department of Housing and Community Development (HCD), overseeing the process and providing guidelines.
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Staff dosen’t recommend selling the Old Medical Building until the monthly lease rate is closer to fair market value which is expected to be in December 2027.
Another property to consider selling is the City-owned parcel at 498 South Alta Street. This property was purchased in 2022 with the goal of constructing senior housing and City staff has coordinated that effort with CHISPA. CHISPA recently advised City staff that the programs they hoped to use for senior housing are no longer an option. So staff recommend bundling that property in the properties offered for sale through the State Surplus Land Act.
Staff recommends that the Council consider putting some or all these properties through the Surplus Land Act process:
1) Canyon Creek Park Phase 2 parcel
2) Venice Way Park (Cipriani Subdivision)
3) 498 South Alta Street
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: Managing the portfolio of City-owned properties maximizes the benefit to the community. However, selling one of some of these properties may be of some benefit to the City.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: See Vision explanation above
City services will be delivered in a cost-effective, respectful, and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____ No ____ N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes X No N/A
• Housing X Yes No N/A
• Recreation Yes X No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: See Vision above.
ALTERNATIVES
Consider offering one or more of the following properties for sale:
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• Canyon Creek Park Phase 2 parcel.
• MAOF Child Care Facility parcel
• Venice Way Park (Cipriani Subdivision)
• Parcel at 498 South Alta Street
• Old Medical Building at 113 Fourth Street)
BUDGET IMPACT
There is no budget impact related to this staff report as staff are seeking Council direction on several City-owned properties.
CONCLUSION
Staff recommend that the City Council provide direction regarding the potential sale of certain City properties.
Attachments:
1. Canyon Creek Park Park Phase 2
2. 469, 473, 477 Venice Way
3. MAOF Child Care Facility 225 Elko St
4. Old Medical Building 113 Fourth St
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MARKET VALUE APPRAISAL OF:
AGRICULTURAL PROCESSING FACILITY AT
1275 HANSEN STREET
SALINAS, MONTEREY COUNTY
REQUESTED BY: Patrick Dobbins
Public Works Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
APPRAISAL AS OF: June 1, 2025
APPRAISED BY: John W. Piini, MAI
Piini Realty Inc.
263 Lincoln Avenue
Salinas, CA 93901
CANYON CREEK FARMLAND PARCEL
GONZALES, MONTEREY COUNTY, CA
APN 020-343-003
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals)
TRANSMITTAL LETTER
June 9, 2025
Patrick Dobbins
Public Works Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
Re: Market Value Appraisal Report
Canyon Creek Parcel
Dear Mr. Dobbins:
Upon your authorization, I conducted the investigations and analyses necessary to form an opinion of the market value of the 2.92±-acre Canyon Creek farmland parcel that is owned by the City of Gonzales and is farmed by Pisoni Farms. The property is identified as Monterey County Assessor Parcel Number (APN) 020-343-003.
This report is presented as a Restricted Appraisal Report. As such, its use is limited to the client and named intended users because it may not contain supporting rationale for all of the opinions and conclusions that are set forth.
Based on the inspection of the property and the investigations and analyses undertaken, I have formed the opinion that as of June 1, 2025, the market value of the property is $105,000.
The restricted appraisal report that follows consists of 15 pages and sets forth the identification of the property, the assumptions and limiting conditions, a summary description of the subject property, and summarized information about the comparable properties reasoning leading to the conclusions set forth.
Respectfully submitted,
John W. Piini, MAI
Piini Realty Inc.
Certified General Real Estate Appraiser
State of California, BREA No. AG005214
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page ii
TABLE OF CONTENTS
Transmittal Letter .......................................................................................................................................... i Table of Contents .......................................................................................................................................... ii Introduction................................................................................................................................................... 3 Identification ............................................................................................................................................ 3 Purpose of the Appraisal .......................................................................................................................... 3 Title ........................................................................................................................................................... 3 Client of the Appraisal .............................................................................................................................. 3 Intended Use of the Appraisal .................................................................................................................. 3 Intended Users ......................................................................................................................................... 3 Effective Date of the Appraisal ................................................................................................................. 3 Date of Report .......................................................................................................................................... 3 Report Format .......................................................................................................................................... 4 Scope of Work .......................................................................................................................................... 4 Summary Property Description ................................................................................................................ 5 Land Area ............................................................................................................................................. 5 Access ................................................................................................................................................... 5 Soil & Topography ................................................................................................................................ 5 Irrigation Water.................................................................................................................................... 5 Building Improvements ........................................................................................................................ 5 Assessed Valuation & Taxes ................................................................................................................. 6 Subject Photographs ................................................................................................................................. 6 Highest & Best Use ............................................................................................................................... 6 Market Valuation ...................................................................................................................................... 6 Certification ................................................................................................................................................. 10 Limiting Conditions ..................................................................................................................................... 11 Qualifications of the Appraiser ..................................................................................................................... 1 Packet Pg. 64
Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 3
INTRODUCTION
IDENTIFICATION
The property of this appraisal assignment is the 2.92±-acre Canyon Creek farmland parcel that is owned by the City of Gonzales and is identified as Monterey County Assessor Parcel Number (APN) 020-343-003.
PURPOSE OF THE APPRAISAL
The purpose of the appraisal is to estimate the market value of the property.
Market Value Defined
The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.1
TITLE
Title is vested as follows:
City of Gonzales, a municipal corporation
CLIENT OF THE APPRAISAL
The client of this appraisal is the City of Gonzales.
INTENDED USE OF THE APPRAISAL
The intended use of the appraisal is to assist the client in making future decisions regarding a possible sale of this city-owned asset.
INTENDED USERS
The intended user of this report is the client.
EFFECTIVE DATE OF THE APPRAISAL
This appraisal assignment represents a current appraisal in which the effective date of the appraisal and the valuation conclusion apply as of June 1, 2025.
DATE OF REPORT
This appraisal assignment was conducted in May 2025. 1
Dictionary of Real Estate Appraisal - 6th Edition. Appraisal Institute, 2015, p. 141.
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 4
REPORT FORMAT
This report is submitted as a Restricted Appraisal report that is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of USPAP for an Appraisal Report. As such, it presents only summary discussion of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained on file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated above.
SCOPE OF WORK
As part of this assignment, the appraiser reviewed his November 15, 2023 Market Rent Appraisal Report of the subject property, which was prepared for the City of Gonzales. For the 2023 appraisal an inspection of the property conducted and Mr. Mark Pisoni, tenant of the Canyon Creek property and the adjoining Breschini Ranch, was interviewed and he provided information on the farming use of the subject, including the importation of water and access.
For this assignment, a re-inspection was not made and the property description is predicated on the prior assignment. The market valuation though is based on a review and analysis of current Salinas Valley agricultural and rental data.
The results of the investigations and the analyses conducted are presented in this appraisal report, and were prepared by John Piini, MAI.
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 5
SUMMARY PROPERTY DESCRIPTION
This parcel is part of the larger
Canyon Creek residential
subdivision, which is located
within the city limits of Gonzales
and is situated on the east side
of Highway 101, with access
provided from 5th Street.
The subject parcel is situated on
an upper bench that physically
separates the subject from the
water detention parcel and the Canyon Creek residential development. The subject has a triangle shape, no physical access, no utilities, and borders irrigated farmlands to the north and west. The historical use of the property is row crop vegetable farming as part of the adjoining farmland to the north and west. The adjoining farmland is referred to as the Breschini Ranch, and the subject parcel is farmed as part of the Breschini Ranch, which can provide access and irrigation to the subject.
Land Area
The property has a triangle shape and contains a gross land area of 2.92 acres.
Access
There is no legal vehicle road access to the property. The tenant is able to access the property is from the adjoining Breschini Ranch, which the subject does not have a right-of-way or easement.
Soil & Topography
The property has a level terrain, and the soil is Salinas clay loam. This soil has a Class 1 capability rating and is considered a prime soil for growing a variety of Salinas Valley vegetable crops.
Irrigation Water
The property does not have developed water. Water to irrigate this parcel is provided from the adjoining Breschini Ranch. The tenant on the Breschini Ranch extends portable irrigation pipelines across the adjoining field road as there are no underground irrigation pipelines on the property.
Building Improvements
There are no building improvements.
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 6 Assessed Valuation & Taxes
The property is publicly owned and hence it does not have an assessed value, though it is subject to annual direct property taxes. The direct taxes for the 2024-2025 tax year are $9.98.
SUBJECT PHOTOGRAPHS
Southerly tip with the City’s North end looking south Easterly end with Canyon Creek water detention pond on the right. Booster pump owned by the tenant with detention pond on the left.
Note: Photographs taken August 23, 2023 by John Piini.
Highest & Best Use
Highest and best use is defined as,
The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.2
The Canyon Creek parcel is essentially a landlocked 2.92-acre triangular parcel, separated from the lands to the east by a steep bank and detention basin. The neighboring property to the north and west is the Breschini Ranch, which is a prime Salinas Valley agricultural property. The historical use of this property is agriculture as part of the neighboring Breschini Ranch, which is the only neighboring property that can provide access and water.
The highest and best use of the subject property is agriculture as part of the adjoining Breschini Ranch.
MARKET VALUATION
Similar to the 2023 market rent appraisal of this property, consideration is given to the properties limitations of having no access nor water and is only 2.92 acres, which is too small to be considered an economic unit. Due to these factors, a discount applies. Historically, in the Salinas Valley farmland properties that are landlocked, and do not have water, are marketable to only the neighbor and discounts 2 Dictionary of Real Estate Appraisal – 6th Edition. (Chicago: Appraisal Institute, 2015) p. 109 Packet Pg. 68
Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 7 of about 35 to 60% apply for renting and selling. Within this range a discount of 45% is in comparing the farmland sales to the subject.
The selected sales for this valuation and the adjustments applied are the following:
Sales, Sale Allocations and Adjustment Summary
Sale No. 1 2 3 4 5 Ranch name Quail Run D'Carli Harney Vosti Herold Sale date 9/28/2023 6/7/2024 9/5/2023 10/27/2020 1/3/2020 Location Iverson Mile End Rd Spence Rd Gonzales River Rd Alta Street Nearest city Gonzales Soledad Salinas Gonzales Gonzales Grantor Arnold LLC Vosti Bank of West Vosti Meyers
Grantee SAIR Costa Springbook Holding D'Arrigo D'Arrigo Deeded acreage 238.9 19.9 147.0 95.4 560.6
Non farmable acreage 1.2 0.0 1.0 0.00 0.00
Other land use acreage 0.0 0.0 0.0 0.00 21.60
Usable and irrigated farm acreage 237.7 19.9 146.0 95.40 539.00 Sale price $11,350,000 $1,267,000 $9,450,000 $6,300,000 $41,500,000 Sale Allocations
Less: Improvement allocation (bldgs/vines) -$1,162,760 -$67,000 $0 $0 $0 Less: "Other Lands" adjustment $0 $0 $0 $0 -$5,000,000
Farmland allocation $10,187,240 $1,200,000 $9,450,000 $6,300,000 $36,500,000 Farmland allocation price per usable acre (rnd) $42,900 $60,300 $64,700 $66,000 $67,700 Percentage Adjustments
Agricultural adjustment 30.0% 5.0% 0.0% 0.0% 0.0%
Limited marektability adjustment -45.0% -45.0% -45.0% -45.0% -45.0% Total percentage adjustments -15.0% -40.0% -45.0% -45.0% -45.0% Adjusted price per usable acre (rnd) $36,500 $36,200 $35,600 $36,300 $37,200 Packet Pg. 69
Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 8 Based on the above, the market value of the Canyon Creek Parcel is concluded at $36,000 per acre. Hence, Usable acres 2.92
Indicated value per usable acre $36,000
Indicated value from the sales comparison approach $105,120 Rounded to $105,000
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page
CERTIFICATION
I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions and conclusions.
• I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • I have performed any real estate services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
• I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
• I have made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, John W. Piini, MAI has completed the continuing education program for Designated members of the Appraisal Institute.
John W. Piini, MAI
Certified General Real Estate Appraiser
State of California, BREA Number AG005214
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 1
LIMITING CONDITIONS
Assumptions and Limitations of Appraisal
This appraisal is for no purpose other than property valuation, and the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations to the accuracy of the information and analyses contained in this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read this entire section to understand these limitations.
Appraisal is not a Legal Opinion
No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in the report.
No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements, and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use.
It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting the subject property was not performed for this appraisal.
It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation.
Any significant question should be addressed to local zoning or land use officials and/or an attorney.
It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and regulations affecting the subject property.
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 1 Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal unless a signed contract has been executed prior to the date of this report.
Appraisal is not a Survey
No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist.
It is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted in the report.
All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, encroachments, or other survey matters.
Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with Limited Data
This appraisal should not be considered a report on the physical items that are a part of this property.
Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these matters in this report should be considered preliminary in nature.
The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or other components
The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for any such condition or for any expertise or engineering to discover them.
No opinion is expressed as to the value of subsurface oil, gas or mineral rights and that the property is not subject to surface entry for the exploration or removal of such materials except as is expressly stated.
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 1 No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted in the report. It is further assumed that the lot does not contain any type of dump site and that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise noted in the report. If any problems of this nature are known to the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report. Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. If it is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at additional cost will be necessary to estimate the effects of such.
Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested party is concerned about the existence, condition or adequacy of any particular item, we would strongly suggest that a construction expert be hired for a detailed investigation.
Appraisal Report Limitations
Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property or the real estate market. While no factors we believe to be significant but unknown to the client have been knowingly withheld, it is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information provided by others, etc.
Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue additional data gathering for a higher level of certainty.
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Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – Canyon Creek Parcel Page 1 Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendation to act. Any actions taken by you, the client, or any others should be based on your own judgment, and the decision process should consider many factors other than just the value estimate and information given in this report.
Appraisal reports made for lenders are technical documents specifically made to lender requirements.
Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of the information contained in these reports.
Neither all nor any part of the contents of this report, especially any conclusions as to value or the identity of the appraiser or the firm to which appraiser is connected, shall be disseminated to the public for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author.
The estimated market value, which is defined in the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions.
The value estimates consider the productivity and relative attractiveness of the property physically and economically in the marketplace as of the date of value.
The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised.
Acceptance of Appraisal Report
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
This appraisal is an estimate of value based on an analysis of information known to the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light, or if any conditions become apparent not previously known to the appraiser(s) which would affect the value of the property, the value given in this report is subject to change without notice and a re-appraisal at additional cost will be necessary.
Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited to the amount of fee received by the appraisers(s).
Packet Pg. 75
Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals)
QUALIFICATIONS OF THE APPRAISER
John Piini has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of Monterey, San Benito, Santa Cruz and Santa Clara Counties.
Academic Background
Formal Education
University of California, Los Angeles, BA degree -1974
Appraisal Education
Mr. Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements.
Since 1983, John Piini has completed a number of appraisal courses and seminars and is current with Appraisal Institute’s continuing education requirement.
Professional Experience
1975 - 1983 Associate appraiser with Joe Piini, MAI
1983 - present Part owner of Piini Realty, a family owned and operated real estate firm involved in appraising, brokerage, and property management. John Piini specializes and the majority of work activity is in the selling and appraising of agricultural properties in Monterey, San Benito, Santa Clara and Santa Cruz Counties
Appraisal Assignments
The majority of assignments pertain to the valuation of agricultural and acreage properties for a variety of purposes including estate planning, conservation easements, trust management and financial lending. Valuations of commercial, industrial special-use, residential and development properties are also performed.
Professional affiliation and memberships
MAI – Member of the Appraisal Institute – Certification Number 6708 California Certified General Real Estate Appraiser – OREA # AG005214 California Licensed Real Estate Broker – DRE # 00542238 Monterey County Board of Realtors
Packet Pg. 76
Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) Packet Pg. 77
Attachment: Canyon Creek Park Park Phase 2 (3374 : Presentation on City Property Appraisals) APPRAISAL OF: AGRICULTURAL PROCESSING FACILITY AT
1275 HANSEN STREET SALINAS, MONTEREY COUNTY REQUESTED BY: Patrick Dobbins Public Works Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926 APPRAISAL AS OF: June 1, 2025 APPRAISED BY: John W. Piini, MAI Piini Realty Inc.
263 Lincoln Avenue
Salinas, CA 93901
469, 473 & 477 VENICE WAY GONZALES, MONTEREY COUNTY, CA APNS 020-351-067, -068 & 069
Packet Pg. 78
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals)
TRANSMITTAL LETTER
June 9, 2025
Patrick Dobbins
Public Works Director
City of Gonzales
Gonzales, CA 93926
Sent via email: [email protected]
Re: Restricted Appraisal Report – 469, 473 & 477 Venice Way Gonzales, CA
Dear Mr. Dobbins:
Upon your authorization, I conducted the investigations and analyses necessary to form an opinion as to the present-day range in the market value of the three single-family residential lots located on Venice Way, which are currently used as a neighborhood playground. The parcels are owned by the City of Gonzales and are identified as Monterey County Assessor Parcel Numbers (APN) 020-351-067; 020-351- 068; and 020-351-069.
This report is presented as a Restricted Appraisal Report that is intended to comply with USPAP Standards Rule 2-2(b). As such, use of this report is limited to the client and named intended users because it may not contain supporting rationale for all of the opinions and conclusions that are set forth. Based on the inspection of the property and the investigations and analyses undertaken, I have formed the opinion that as of June 1, 2025, the market value range for each parcel is between $180,000 and $195,000.
The restricted appraisal report that follows consists of xx pages and sets forth the identification of the property, the assumptions and limiting conditions, a summary description of the subject property, and a summary table of the market data utilized the conclusions set forth.
Respectfully submitted,
John W. Piini, MAI
Certified General Real Estate Appraiser
State of California, BREA No. AG005214
Packet Pg. 79
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals)
GENERAL INFORMATION
Subject Address: 469, 473 and 477 Venice Way, Gonzales, CA 93926 Identification: Monterey County Assessor Parcel Numbers 020-351-067-000; 020-351-068-000; and 020-351-069-000.
Client: City of Gonzales.
Intended Users: The client is the only intended user of this Restricted Appraisal Report. No other users of this report are intended by the appraiser.
Intended Use: To assist the client in making future decisions regarding a possible sale of the property. This report is not intended for review by the Department of General Services.
Property Rights: Fee simple interest1. Type of Value: Market value2 . Date of the Report: The report was prepared in May and June 2025. Exposure Time: An exposure time of 6 to 12 months is considered reasonable and applied in this analysis.
Effective Date: June 1, 2025.
Appraisal Conditions: The subject properties are appraised under the extraordinary assumptions3that (1) each property is free and clear of any environmental, hazardous, or toxic contamination that would adversely impact value; and (2) each parcel would be allowed by the City of Gonzales to be developed for a single-family dwelling, consistent with the neighboring parcels.
Property History: There were no transfers of ownership within the past three years. I am not aware of any purchase options/agreements affecting the subject property. 1 Fee simple interest is defined as “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.
Dictionary of Real Estate Appraisal – 6th Edition. (Chicago: Appraisal Institute, 2015) p. 90. 2 Market value is defined as “The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available” (California Code of Civil Procedure §1263.320). 3 Extraordinary assumption is defined as “An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions” (Ibid., p. 83).
Packet Pg. 80
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals) Scope of Work: The subject was inspected by John Piini on May 2, 2025. In addition to the onsite inspection the scope of work included an investigation of single-family residential lot sales within the market area. Due to the lack of residential lots sales, a review and analysis of single-family residential properties was conducted to extract a reasonable allocation of land value.
PROPERTY DESCRIPTION
Aerial Map
Three residential lots fronting Venice Way that are currently used as a neighborhood park Packet Pg. 81
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals) Location: The three parcels are located on the east side of Venice Way with property addresses of 469, 473 & 477 Venice Way, Gonzales, CA. The parcels are part of Cipriani Estates, a 74-unit single family residential development that was developed between 2005 – 2007. The most recent home sales in Cipriani Estates were in 2022 and 2023 and during that period three homes sold between $560,000 and $650,000.
View of single-family homes on Venice Way and within Cipriani Estates.
Lot sizes:
Site Improvement: The street frontages are improved with curb, gutters and sidewalks. Water, sewer and power are provided within the development. It is assumed full utilities are available.
Land Use Policies: The parcels are utilized for a public park and zoned Public. The adjoining properties are zoned Single Family Residential providing one single family residence per parcel. The valuation assumes that each parcel could be developed a single-family dwelling, consistent with the residential properties within Cipriani Estates.
Highest & Best Use: Single family residential.
Address 469 Venice Way 473 Venice Way 477 Venice Way
Venice Way Frontage 64 feet 64 feet 64 feet
Depth 84.25 feet 84.25 feet 84.25 feet
Lot size (sqquare feet) 5,392 5,392 5,392
Packet Pg. 82
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals) Valuation Comments: There are no single-family residential lot sales in Gonzales, nor in the neighboring Salinas Valley towns of Soledad, Greenfield and King City. Due to the lack of single-family lot sales an analysis of single-family home sales was considered and from these improved sales 30% of the sale price is allocated to land value.
Value Conclusion Based on the above the market value range of the three parcels is concluded between $180,000 and $195,000. .
Sale Date Street Address Sale Price
Bed/
Baths
Sq Ft
Total $/SF
Lot Size
(sf) Age Lot %
Lot allocation
(rnd)
3/30/2022 457 Venice Way $615,000 4-2 1,442 $426 5,376 18 30.0% $184,500 5/24/2022 717 Cipriani St $650,000 4-2 1,676 $388 5,120 18 30.0% $195,000 12/27/2023 741 Cipriani St $560,000 3-2 1,156 $484 5,227 19 30.0% $168,000 5/17/2024 806 Appaloosa Way $650,000 4-2 1,298 $501 8,276 30 30.0% $195,000 8/8/2024 511 Fairview Drive $630,000 3-2 1,200 $525 6,472 44 30.0% $189,000 4/11/2024 540 Delmonte Drive $620,000 3-2 1,239 $500 6,000 58 30.0% $186,000 9/6/2024 960 Elko Street $618,000 3-1 1,008 $613 6,220 38 30.0% $185,400 Packet Pg. 83
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals)
CERTIFICATION
I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions and conclusions.
• I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • I have performed any real estate services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
• I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
• I have made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, John W. Piini, MAI has completed the continuing education program for Designated members of the Appraisal Institute.
John W. Piini, MAI
Certified General Real Estate Appraiser
State of California, BREA Number AG005214
Packet Pg. 84
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals)
LIMITING CONDITIONS
Assumptions and Limitations of Appraisal
This appraisal is for no purpose other than property valuation, and the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations to the accuracy of the information and analyses contained in this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read this entire section to understand these limitations.
Appraisal is not a Legal Opinion
No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in the report.
No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements, and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use.
It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting the subject property was not performed for this appraisal.
It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation.
Any significant question should be addressed to local zoning or land use officials and/or an attorney.
It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and regulations affecting the subject property.
Packet Pg. 85
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals) Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal unless a signed contract has been executed prior to the date of this report.
Appraisal is not a Survey
No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist.
It is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted in the report.
All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, encroachments, or other survey matters.
Appraisal is Not an Engineering or Property Inspection Report and is Made Under Conditions with Limited Data
This appraisal should not be considered a report on the physical items that are a part of this property.
Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these matters in this report should be considered preliminary in nature.
The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or other components
The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental or health expert. No responsibility is assumed for any such condition or for any expertise or engineering to discover them.
No opinion is expressed as to the value of subsurface oil, gas or mineral rights and that the property is not subject to surface entry for the exploration or removal of such materials except as is expressly stated.
Packet Pg. 86
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals) No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted in the report. It is further assumed that the lot does not contain any type of dump site and that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise noted in the report. If any problems of this nature are known to the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report. Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. If it is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at additional cost will be necessary to estimate the effects of such.
Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested party is concerned about the existence, condition or adequacy of any particular item, we would strongly suggest that a construction expert be hired for a detailed investigation.
Appraisal Report Limitations
Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property or the real estate market. While no factors we believe to be significant but unknown to the client have been knowingly withheld, it is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information provided by others, etc.
Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue additional data gathering for a higher level of certainty.
Packet Pg. 87
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals) Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendation to act. Any actions taken by you, the client, or any others should be based on your own judgment, and the decision process should consider many factors other than just the value estimate and information given in this report.
Appraisal reports made for lenders are technical documents specifically made to lender requirements.
Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of the information contained in these reports.
Neither all nor any part of the contents of this report, especially any conclusions as to value or the identity of the appraiser or the firm to which appraiser is connected, shall be disseminated to the public for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author.
The estimated market value, which is defined in the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions.
The value estimates consider the productivity and relative attractiveness of the property physically and economically in the marketplace as of the date of value.
The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised.
Acceptance of Appraisal Report
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
This appraisal is an estimate of value based on an analysis of information known to the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light, or if any conditions become apparent not previously known to the appraiser(s) which would affect the value of the property, the value given in this report is subject to change without notice and a re-appraisal at additional cost will be necessary.
Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited to the amount of fee received by the appraisers(s).
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Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals)
QUALIFICATIONS OF THE APPRAISER
John Piini has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of Monterey, San Benito, Santa Cruz and Santa Clara Counties.
Academic Background
Formal Education
University of California, Los Angeles, BA degree -1974
Appraisal Education
Mr. Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements.
Since 1983, John Piini has completed a number of appraisal courses and seminars and is current with Appraisal Institute’s continuing education requirement.
Professional Experience
1975 - 1983 Associate appraiser with Joe Piini, MAI
1983 - present Part owner of Piini Realty, a family owned and operated real estate firm involved in appraising, brokerage, and property management. John Piini specializes in and the majority of work involves selling and appraising agricultural properties in Monterey, San Benito, Santa Clara and Santa Cruz Counties
Appraisal Assignments
The majority of assignments pertain to the valuation of agricultural and acreage properties for a variety of purposes including estate planning, conservation easements, trust management and financial lending. Valuations of commercial, industrial special-use, residential and development properties are also performed.
Professional affiliation and memberships
MAI – Member of the Appraisal Institute – Certification Number 6708 California Certified General Real Estate Appraiser – OREA # AG005214 California Licensed Real Estate Broker – DRE # 00542238 Monterey County Board of Realtors
Packet Pg. 89
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals) Packet Pg. 90
Attachment: 469, 473, 477 Venice Way (3374 : Presentation on City Property Appraisals) APPRAISAL OF:
AGRICULTURAL PROCESSING FACILITY AT
1275 HANSEN STREET
SALINAS, MONTEREY COUNTY
REQUESTED BY: Patrick Dobbins
Public Works Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
APPRAISAL AS OF: June 1, 2025
APPRAISED BY: John W. Piini, MAI
Chad Piini
Piini Realty Inc.
263 Lincoln Avenue
Salinas, CA 93901
225 ELKO STREET
GONZALES, MONTEREY COUNTY, CA
PORTION OF APN 020-111-022
Packet Pg. 91
Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) June 9, 2025
Patrick Dobbins
Public Works Director
City of Gonzales
Gonzales, Ca 93926
Sent via email: [email protected]
Re: Restricted Appraisal Report 225 Elko Street
Gonzales, California
Dear Mr. Dobbins:
Upon your authorization, we conducted the investigations and analyses necessary to form an opinion as to the present-day range in the fee simple market value for the day care center located at 225 Elko Street, Gonzales.
The day care center is a part of Monterey County Assessor Parcel Number (APN) 020-111-022, which is a
1.62-acre parcel, owned by the City of Gonzales and improved with a public swimming pool (Gonzales Community Pool) and the day care center. The day care center occupies approximately 0.47 acres of the larger parcel and this appraisal is predicated upon the extraordinary assumption that the Day Care Center is a separate and legal parcel.
This report is presented as a Restricted Appraisal Report that is intended to comply with USPAP Standards Rule 2-2(b). As such, use of this report is limited to the client and named intended users because it may not contain supporting rationale for all of the opinions and conclusions that are set forth. Based on the inspection of the property and the investigations and analyses undertaken, we have formed the opinion that as of June 1, 2025, the market value range for the fee simple interest in the subject property is $500,000 to $550,000.
The restricted appraisal report that follows sets forth the identification of the property, the assumptions and limiting conditions, a summary description of the subject property, and summaries of the valuation approaches utilized.
Respectfully submitted,
John W. Piini, MAI Chad Piini
Certified General Real Estate Appraiser Certified General Real Estate Appraiser State of California, BREA No. AG005214 State of California, BREA No. AG005214 Packet Pg. 92
Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 2
GENERAL INFORMATION
Subject Address: 225 Elko Street, Gonzales, Ca 93926
Identification: The property being appraised is a part of Monterey County Assessor Parcel Number (APN) 020-111-022. APN 020-111-022 is a 1.62-acre parcel that is owned by the City of Gonzales and improved with a public swimming pool (Gonzales Community Pool) and a day care center. The image below shows the approximate boundaries of APN 020-111-022 and the portion of that parcel that is the subject of this appraisal.
Extraordinary
Assumptions This appraisal is predicated upon the extraordinary assumption1that the area depicted above and containing 0.47± acres is a separate and legal parcel.
Client: City of Gonzales.
Intended Users: The client is the only intended user of this Restricted Appraisal Report. No other users of this report are intended by the appraiser. 1
Extraordinary assumption is defined as “An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions” Dictionary of Real Estate Appraisal – 6th Edition. (Chicago: Appraisal Institute, 2015) p. 83.
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Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 3
Intended Use: To assist the client in making future decisions regarding a possible sale of the property. This report is not intended for review by the Department of General Services.
Property Rights: Fee simple interest2. Ownership Interest Appraised: 100% undivided ownership interest.
Type of Value: Market Value3. Date of the Report: The report was prepared in May and June 2025. Exposure Time: An exposure time of 3 to 6 months is considered reasonable and applied in this analysis.
Effective Date of Value: June 1, 2025.
Appraisal Conditions: The subject property is appraised under the extraordinary assumption that the property is free and clear of any environmental, hazardous, or toxic contamination that would adversely impact value.
Property History: There were no transfers of ownership within the past three years. We are not aware of any purchase options/agreements affecting the subject property.
Scope of Work: The subject was inspected by Greg and Chad Piini on May 1, 2024 for a previous market rent appraisal. This appraisal is based on the extraordinary assumption that there have been no physical changes since the last inspection. We have reviewed parcel maps, aerial photographs, topography maps, flood maps, soil maps, and zoning maps.
The valuation of the property is predicated on market data collected specifically for this assignment and prior appraisal assignments. The market data is derived from a variety of sources including County records and Multiple Listing Service (MLS) data. 2
Fee simple interest is defined as “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.
Dictionary of Real Estate Appraisal – 6th Edition. (Chicago: Appraisal Institute, 2015) p. 90. 3 Market value is defined as “The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available” (California Code of Civil Procedure §1263.320).
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Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 4
PROPERTY DESCRIPTION
Location: The property address is 225 Elko Street, Gonzales, California. This location is within the center of Gonzales and the land uses along Elko Street, between 7th Street to the north and Fairview Road to the south include the La Gloria Elementary School, Fairview Middle School and Gonzales High School. Outside the public serving facilities, the predominate land use is residential, consisting mostly of single-family residential homes
Site: The subject property is part of a larger parcel; however, for the purpose of this appraisal, it is assumed to be a separate and legal 0.47-acre, irregular shaped parcel as depicted in the prior image.
Improvements: This site is improved with a single story 2,780 square foot commercially operated day care center. The building has a concrete block foundation, stucco siding with dual pane windows and the front and rear entrances are equipped with ADA ramps. Current layout provides for two large rooms, an office, a kitchen and three bathrooms. Overall, the property is in good condition. There is an enclosed 4,700 square foot yard area in the back composed mostly of a concrete patio and small lawn area, and seven parking spaces along Elko Street.
Lease: The property is leased to the Mexican American Opportunity Foundation (MAOF). The Lease is for two years and terminates on October 31, 2027. There is an option for another two-year extension. Currently the tenant is paying $1,569 per month and there is a 3% increase each year. The tenant is responsible for utilities, maintenance, janitorial, personal property fire insurance and public liability and damage insurance. The City of Gonzales is responsible for major repairs, property fire insurance and property taxes.
Land Use Policies: The property is zoned Open Space (OS). For valuation purposes, it is assumed that the current use is a permitted use and that property could also be utilized for an office use.
Packet Pg. 95
Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 5
Highest & Best Use: The subject is used as a day care center, which would be categorized as a commercial office. The highest and best use is the current use or as a commercial office. Valuation Comments: The valuation of the subject property is predicated upon the sales comparison approach and the income approach. The cost approach is not applied due to the lack of commercial office land in the market area.
Sales Comparison Approach:
The sales that provide the greatest comparability are summarized below. Due to the lack of comparable sales in the city of Gonzales, sales in South Monterey County and Salinas are considered. The selected sales are summarized below:
Sale 1: Sale 1 is located in Soledad and situated on an interior lot fronting the east side of Front Street, which is the main commercial arterial for Soledad. This property is improved with a two-story, unreinforced mixed-use building that has a 2,297 square foot retail space on the ground level and a two-bedroom apartment on the second floor.
At the time of sale, the ground floor was occupied by an auto parts store that was paying $1,900 per month ($0.83/SF) on a month-to-month tenancy, and the apartment unit was vacant.
An income analysis of the sale indicates an overall rate of about 5.8 % on first year income at market rent.
Sale 2: Sale 2 is located on south Main Street in Salinas near Salinas High School. This property shares a common parking lot with the adjoining properties and is improved with a 5,473 square foot commercial building that is divided into two rental units. Each unit is utilized for hair salons. The building is an average quality single-story building that was constructed in 1975.
Resume of Sales and adjustments
Sale No Subject 1 2 3 4 5 6
Sale Date N/A 10/30/2024 6/28/2023 4/30/2025 2/16/2024 2/29/2024 10/11/2023 City Gonzales Soledad Salinas Salinas Soledad Soledad Salinas Location 225 Elko street 415-417 Front St 843-847 S. Main 92 La Mesa Dr 1040 State St 515 Front St 1119-1121 Pajaro St APN 020-111-022 022-014-011 002-534-033 016-101-029 022-037-003 022-026-018 002-671-043 Year built No Record 1929 1975 1978 1963 1988 1958
Lot size 11,761 3,750 5,473 9,300 6,098 6,750 7,552
Building size 2,780 3,632 5,473 5,630 3,145 3,046 2,988 Floor area ratio 23.6% 96.9% 100.0% 60.5% 51.6% 45.1% 39.6% Zoning Public C-1 CR CR C-2 C-1 RL 5.5
Sale price N/A $550,000 $910,000 $975,000 $570,000 $605,000 $850,000 Price per sq. ft. N/A $151 $166 $173 $181 $199 $284
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Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 6
The property was offered for sale in May 2023 at an asking price of $900,000 and sold within 30 days to one of the tenants at a sale price of $910,000.
Market rent for the two units was about $1.30 per square foot and the sale indicates a first-year rate of return of about 6.5%.
Sale 3: Sale 3 is located in south Salinas, behind the Star Market Shopping Center and one-half block from the Pajaro Street and Blanco Road intersection. This property has a 9,300 square foot lot and is improved with a single story, 5,630 square foot, wood frame commercial building that was constructed in 1963.
The property was acquired by the tenant who had a three-year lease that included an option to purchase the property for $975,000 at the end of the lease. The contract rent for the three years was at $5,000 per month ($0.89/SF) on a modified gross basis. The tenant, who operates a veterinarian clinic, exercised the option to purchase in April 2025.
An income analysis of the sale indicates an overall rate of about 5.3% on first year income. Sale 4: Sale 4 is located on State Street in Soledad, in an area composed mostly of commercial industrial and storage warehouses. The property is improved with a single story, low-cost commercial building and an attached 2-bed and 1-bath apartment unit. The commercial building is 2,600 square feet and divided into two units.
The property was offered for sale in May 2023 at an asking price of $598,000 and sold in February 2024 for $570,000. At the time of sale, the commercial building was vacant.
Sale 5: Sale 5 is another improved commercial sale located at 515 Front Street in Soledad. The property is improved with a two-unit, unreinforced masonry retail building that was constructed in 1928.
The property was offered for sale in January 2024 at an asking price of $575,000 and sold within one month for $605,000. At the time of sale, the retail units included a barber shop and an ice cream parlor. The units were rented at a below market rent of $0.44 per square foot.
Sale 6: Sale 6 is located in south Salinas in a mixed-use area of multi-family residential and several former residences and duplexes converted to offices. This property is a former duplex building that was converted to a two-unit office building. At the time of sale, the property was owner-occupied and used for a chiropractic business. One of the units continues to be used for a chiropractic office and the second unit for skin care. Market rent for the units is $2.25 per square foot and the sale indicates a first-year rate of return of about 7.0%.
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Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 7
Sale Adjustments: The sale adjustment grid summarizes the various adjustments applied in comparing the sales to the subject property:
In comparing the sales to the subject, quantifying adjustments is difficult due to the limited number of commercial sales in the market area and the sales that occurred do not necessarily provide a consistent pattern. For instance, Sales 2 and 3 are considered superior to Sales 4 and 5 and yet Sales 4 and 5 sold for a higher per square foot price. The difference in size would account for some of that, but not all.
In review of the above, Sale 1 is considerably inferior to the subject and that sale brackets the low end of value at $160 per square foot. Sale 6 is considerably superior and based on that sale, the value of the subject is less than $215 per acre.
After adjusting the remaining four sales for differences in location and building size the adjusted range from these four sales is between $190 per square foot and $200 per square foot. Hence,
Resume of Sales and adjustments
Sale No Subject 1 2 3 4 5 6
Sale Date N/A 10/30/2024 6/28/2023 4/30/2025 2/16/2024 2/29/2024 10/11/2023 City Gonzales Soledad Salinas Salinas Soledad Soledad Salinas Location 225 Elko street 415-417 Front St 843-847 S. Main 92 La Mesa Dr 1040 State St 515 Front St 1119-1121 Pajaro St APN 020-111-022 022-014-011 002-534-033 016-101-029 022-037-003 022-026-018 002-671-043 Year built No Record 1929 1975 1978 1963 1988 1958
Lot size 11,761 3,750 5,473 9,300 6,098 6,750 7,552
Building size 2,780 3,632 5,473 5,630 3,145 3,046 2,988 Floor area ratio 23.6% 96.9% 100.0% 60.5% 51.6% 45.1% 39.6% Zoning Public C-1 CR CR C-2 C-1 RL 5.5
Sale price N/A $550,000 $910,000 $975,000 $570,000 $605,000 $850,000 Price per sq. ft. N/A $151 $166 $173 $181 $199 $284
Location Comparable Superior (-) Superior (-) Inferior (+) Comparable Superior (-) Bldg Size (per unit comparison) Inferior (+) Inferior (+) Inferior (+) Comparable Comparable Comparable Overall percentage adjustment 5.0% 15.0% 15.0% 10.0% 0.0% -25.0% Adjusted price per sq. ft. (rnd.) $160 $190 $200 $200 $200 $215 Age and Condition Inferior (++) Comparable (=) Inferior (+) Inferior (+) Inferior (+) Comparable (=) Income potential Inferior (+) Comparable (=) Comparable (=) Inferior (+) Inferior (+) Superior (-) Square footage 2,780 2,780
Price per square foot $190 $200
Market value $528,200 $556,000
Rounded to $530,000 $560,000
Packet Pg. 98
Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 8
Income Approach:
FEE SIMPLE MARKET VALUE RANGE CONCLUSION
Income approach - fee simple value range
Gross monthly rent Unit Size $/SF Totals
2,780 $1.30 $3,614
Gross annual income $43,368
Less: Vacancy and collection loss 3.0% $1,301
Effective gross income $42,067
Operating Expenses
Fire insurance 2,780 $0.65 $1,807
Utilities Paid by tenant $0
Repairs & reserves 5.0% $2,103
Professional services 5.0% $2,103
Total expenses $6,014
Net income $36,053
Value ranged based on the capitalization rate
Capitalization rates 6.00% 5.50%
Estimated tax rate 1.15% 1.15%
Overall capitalization rate 7.15% 6.65%
Capitalized value $504,241 $542,154
Rounded to $500,000 $540,000
Sales comparison approach - fee simple value range $530,000 to $560,000 Income approach - fee simple value range $500,000 to $540,000 Market value conclusion $500,000 to $550,000
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Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 9
CERTIFICATION – JOHN PIINI
I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions and conclusions.
• I have no present or prospective interest in the properties that are the subject of this report, and no personal interest with respect to the parties involved. • I have performed appraisal services regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • I have no bias with respect to the properties that are the subject of this report or to the parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
• I have made a personal inspection of the properties that are the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, John W. Piini, MAI has completed the requirements of the continuing education program of the Appraisal Institute.
John W. Piini, MAI
Certified General Real Estate Appraiser
State of California, BREA Number AG005214
Packet Pg. 100 Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 10
CERTIFICATION – CHAD PIINI
I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions and conclusions.
• I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved.
• I have appraised the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
• I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
• My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. • I have made a personal inspection of the property that is the subject of this report. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
Chad Piini
Certified General Real Estate Appraiser
State of California, BREA No. 3012020
Packet Pg. 101 Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 11
LIMITING CONDITIONS
ASSUMPTIONS AND LIMITATIONS OF APPRAISAL
This appraisal is for no purpose other than property valuation, and the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations to the accuracy of the information and analyses contained in this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read this entire section to understand these limitations.
APPRAISAL IS NOT A LEGAL OPINION
No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in the report.
No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements, and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use.
It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting the subject property was not performed for this appraisal.
It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation.
Any significant question should be addressed to local zoning or land use officials and/or an attorney.
It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and regulations affecting the subject property.
Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal unless a signed contract has been executed prior to the date of this report.
APPRAISAL IS NOT A SURVEY
No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist.
Packet Pg. 102 Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 12
It is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted in the report.
All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, encroachments, or other survey matters.
APPRAISAL IS NOT AN ENGINEERING OR PROPERTY INSPECTION REPORT AND IS MADE UNDER CONDITIONS WITH
LIMITED DATA
This appraisal should not be considered a report on the physical items that are a part of this property.
Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these matters in this report should be considered preliminary in nature.
The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or other components
The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for any such condition or for any expertise or engineering to discover them.
No opinion is expressed as to the value of subsurface oil, gas or mineral rights and that the property is not subject to surface entry for the exploration or removal of such materials except as is expressly stated.
No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted in the report. It is further assumed that the lot does not contain any type of dump site and that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise noted in the report. If any problems of this nature are known to the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report.
Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. If it is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at additional cost will be necessary to estimate the effects of such.
Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or Packet Pg. 103 Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 13
condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested party is concerned about the existence, condition or adequacy of any particular item, we would strongly suggest that a construction expert be hired for a detailed investigation.
APPRAISAL REPORT LIMITATIONS
Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property or the real estate market. While no factors we believe to be significant but unknown to the client have been knowingly withheld, it is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information provided by others, etc.
Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue additional data gathering for a higher level of certainty.
Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendation to act. Any actions taken by you, the client, or any others should be based on your own judgment, and the decision process should consider many factors other than just the value estimate and information given in this report.
Appraisal reports made for lenders are technical documents specifically made to lender requirements.
Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of the information contained in these reports.
Neither all nor any part of the contents of this report, especially any conclusions as to value or the identity of the appraiser or the firm to which appraiser is connected, shall be disseminated to the public for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author.
The estimated market value, which is defined in the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimates consider the productivity and relative attractiveness of the property physically and economically in the marketplace as of the date of value.
The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised.
Packet Pg. 104 Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 14
ACCEPTANCE OF APPRAISAL REPORT
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
This appraisal is an estimate of value based on an analysis of information known to the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light, or if any conditions become apparent not previously known to the appraiser(s) which would affect the value of the property, the value given in this report is subject to change without notice and a re-appraisal at additional cost will be necessary.
Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited to the amount of fee received by the appraisers(s).
Packet Pg. 105 Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 225 Elko Street Page 15
QUALIFICATONS OF THE APPRAISER
JOHN W. PIINI, MAI
John W. Piini, MAI has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of Monterey, San Benito, Santa Cruz and Santa Clara Counties.
Academic Background
Formal Education
University of California, Los Angeles, BA degree -1974
Appraisal Education
John Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements.
Since 1983, John Piini has completed a number of appraisal courses and seminars and is current with the BREA continuing education requirements and has completed the continuing education program for Designated members of the Appraisal Institute.
Professional Experience
1975 - 1983 Associate appraiser with Joe Piini, MAI
1983 - 2008 Part owner of Piini Realty, a family owned and operated real estate firm involved in appraising, brokerage, development and management. 2008 - present In 2008 John Piini became the sole owner of Piini Realty and obtained his California Brokers license. For the past decade, real estate activities focus primarily on appraising and marketing agricultural properties.
Appraisal Assignments
The majority of assignments pertain to the valuation of agricultural and acreage properties for a variety of purposes including estate planning, conservation easements, trust management and financial lending. Valuations of commercial, industrial special-use, residential and development properties are also performed.
Professional affiliation and memberships
MAI Designation with the Appraisal Institute – Certification Number 6708 California Certified General Real Estate Appraiser – BREA # AG005214 California Licensed Real Estate Broker – BRE # 00542238 Monterey County Board of Realtor
Packet Pg. 106 Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) Packet Pg. 107 Attachment: MAOF Child Care Facility 225 Elko St (3374 : Presentation on City Property Appraisals) APPRAISAL OF: AGRICULTURAL PROCESSING FACILITY AT
1275 HANSEN STREET SALINAS, MONTEREY COUNTY REQUESTED BY: Patrick Dobbins Public Works Director
City of Gonzales
147 Fourth Street
Gonzales, CA 93926 APPRAISAL AS OF: June 1, 2025 APPRAISED BY: John W. Piini, MAI Chad Piini
Piini Realty Inc.
263 Lincoln Avenue
Salinas, CA 93901
113 4TH STREET GONZALES, MONTEREY COUNTY, CA
APN 020-073-001
Packet Pg. 108 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals)
TRANSMITTAL LETTER
June 9, 2025
Patrick Dobbins
Public Works Director
City of Gonzales
Gonzales, Ca 93926
Sent via email: [email protected]
Re: Restricted Appraisal Report – 113 4th Street
Gonzales, California
Dear Mr. Dobbins:
Upon your authorization, we conducted the investigations and analyses necessary to form an opinion as to the present-day range in the fee simple and leased fee market value for the office building located at 113 4th Street, Gonzales and identified as Monterey County Assessor Parcel Number (APN) 020-073-011.
This report is presented as a Restricted Appraisal Report that is intended to comply with USPAP Standards Rule 2-2(b). As such, use of this report is limited to the client and named intended users because it may not contain supporting rationale for all of the opinions and conclusions that are set forth. Based on the inspection of the property and the investigations and analyses undertaken, we have formed the opinion that as of June 1, 2025, the market value range for the fee simple and leased fee interest of the subject property are as follows:
Property rights appraised Fee simple Interest Leased Fee Interest Market value range $800,000 to $875,000 $710,000 to $780,000 The restricted appraisal report that follows sets forth the identification of the property, the assumptions and limiting conditions, a summary description of the subject property, and summaries of the valuation approaches utilized.
Respectfully submitted,
John W. Piini, MAI Chad Piini
Certified General Real Estate Appraiser Certified General Real Estate Appraiser State of California, BREA No. AG005214 State of California, BREA No. AG00521 Packet Pg. 109 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 2
GENERAL INFORMATION
Subject Address: 113 4th Street, Gonzales, Ca 93926
Identification: Monterey County Assessor Parcel Number 020-073-011 Extraordinary
Assumptions This appraisal is predicated upon two extraordinary assumptions1. The first extraordinary assumption is that there are easements allowing for the shared use of the paved parking lot situated between the subject parcel and the adjoining Gonzales City Hall parcel that is identified as APN 020-073-001.
The second extraordinary assumption is that the property is free and clear of any environmental, hazardous, or toxic contamination that would adversely impact value.
Property Type: Multi-tenant office building.
Client: City of Gonzales.
Intended Users: The client is the only intended user of this Restricted Appraisal Report. No other users of this report are intended by the appraiser.
Intended Use: To assist the client in making future decisions regarding a possible sale of the property. This report is not intended for review by the Department of General Services.
Property Rights: The property is leased through December 30, 2027, and at the client’s request, the property rights appraised is both the fee simple interest2 and the leased fee interest.3
Ownership Interest Appraised: 100% undivided ownership interest.
Type of Value: Market value4. 1
Extraordinary assumption is defined as “An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions” Dictionary of Real Estate Appraisal – 6th Edition. (Chicago: Appraisal Institute, 2015) p. 83. 2 Fee simple interest is defined as “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.
Dictionary of Real Estate Appraisal – 6th Edition. (Chicago: Appraisal Institute, 2015) p. 90. 3 The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the Lease plus the reversionary right when the Lease expires. 4 Market value is defined as “The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so Packet Pg. 110 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 3
Date of the Report: The report was prepared in May and June 2025.
Exposure Time: An exposure time of 6 to 12 months is considered reasonable and applied in this analysis.
Effective Date: June 1, 2025.
Property History: There were no transfers of ownership within the past three years. We are not aware of any purchase options/agreements affecting the subject property.
Scope of Work: The subject was inspected by Greg and Chad Piini on May 1, 2024 for a previous market rent appraisal. This appraisal is based on the extraordinary assumption that there have been no physical changes since the last inspection. We have reviewed parcel maps, aerial photographs, topography maps, flood maps, soil maps, and zoning maps.
The valuation of the property is predicated on market data collected specifically for this assignment and prior appraisal assignments. The market data is derived from a variety of sources including County records; Multiple Listing Service (MLS) data; website subscription services including LoopNet, and Costar.
PROPERTY DESCRIPTION
AERIAL MAP
doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available” (California Code of Civil Procedure §1263.320).
Packet Pg. 111 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 4
113 4th Street office building on right, Gonzales City Hall on left and common area parking for both buildings in center of photo. Photo taken from alley facing 4th Street.
Location: The property is located at 113 4th Street. The surrounding land uses along 4th Street include city hall, the Gonzales police station and other governmental offices.
Site: The subject parcel is an interior lot with 90-feet of frontage on the north side of 4 th Street and a depth of 140-feet. Lot size is 12,600 square feet.
Improvement: The site is improved with a single story, 5,330 square foot that is currently divided into three rental units, which are summarized below:
The building has a concrete slab foundation, stucco and slump stone siding, single pane windows and a flat, tar and gravel roof. Each rental unit has its own access and there are no common areas shared by the three units. The entrance to the Gonzales Medical Center has direct access at 4th Street and the entrance has a steep concrete slope that does not meet ADA standards.
There is one gas and one electrical meter. To the east of the building is a 7,000 ± square foot paved parking lot that provides for 14 parking spaces. This parking lot overlaps onto the Gonzales City Hall parcel (APN 020-073-001). It is assumed that if the subject parcel were sold, right-of-way’s and easements would be established to allow the continued shared use of the on-site parking.
Gross Building Area
Tenant % of GBA Square Feet
Gonzales Medical Center 54.1% 2,884
Labcorp 17.3% 923
Vacant 28.6% 1,523
Gross Building Area (GBA) 100.0% 5,330
Packet Pg. 112 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 5
Lessee Gonzales Medical Center
Lease term 5-Years: 1/1/2022 to 12/30/2027
Leased premise (square feet) 2,883
Base year monthly rent $500
Monthly rent per square foot $0.17
Rental adjustment Based on change in CPI with a 3% ceiling Landlord obligations General maintenance and major repairs Lessee obligations Water, sewer, gas, electrical & janitorial Leases: The subject has two tenants and one space that is vacant. The largest tenant is Gonzales Medical Center, which leases 2,883 square feet. The second tenant is LabCorp, which leases 923 square feet. The second tenant, LabCorp is on a month-to-month term and pays approximately $790+. The Gonzales Medical Center has a Lease that expires on December 30, 2027 and is currently dramatically under market and it is this reason why the client requests a leased fee valuation range. The terms of the Gonzales Medical Center are further summarized as follows:
Land Use Policies: The property is within the Historic District (H) and zoned Public Facility (PF).
Highest & Best Use: The subject is located in the Historic District of downtown Gonzales and the surrounding land uses are commercial and governmental buildings. The highest and best use is as an office use. Valuation Comments: For the valuation of the subject property, the fee simple value is determined first, and it is predicated upon the sales comparison approach and the income approach. The cost approach is not applied due to the lack of commercial office land in the market area.
Following the conclusion of the fee simple value range, the leased fee value range is predicated on the present value of the difference between the contract rent and market rent.
FEE SIMPLE VALUE RANGE
Sales Comparison Approach: The sales that provide the greatest comparability are summarized below. Due to the lack of comparable sales in the city of Gonzales, sales in south Monterey County and Salinas are considered. The selected sales are summarized below:
Packet Pg. 113 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 6
Sale 1: Sale 1 is located in Soledad and situated on an interior lot fronting the east side of Front Street, which is the main commercial arterial for Soledad. This property is improved with a two-story, unreinforced mixed-use building that has a 2,297 square foot retail space on the ground level and a two-bedroom apartment on the second floor.
At the time of sale, the ground floor was occupied by an auto parts store that was paying $1,900 per month ($0.83/SF) on a month-to-month tenancy, and the apartment unit was vacant.
An income analysis of the sale indicates an overall rate of about 5.8 % on first year income at market rent.
Sale 2: Sale 2 is located on south Main Street in Salinas near Salinas High School. This property shares a common parking lot with the adjoining properties and is improved with a 5,473 square foot commercial building that is divided into two rental units. Each unit is utilized for hair salons. The building is an average quality single-story building that was constructed in 1975.
The property was offered for sale in May 2023 at an asking price of $900,000 and sold within 30 days to one of the tenants at a sale price of $910,000.
Market rent for the two units was about $1.30 per square foot and the sale indicates a first-year rate of return of about 6.5%.
Sale 3: Sale 3 is located in south Salinas, behind the Star Market Shopping Center and one-half block from the Pajaro Street and Blanco Road intersection. This property has a 9,300 square foot lot and is improved with a single story, 5,630 square foot, wood frame commercial building that was constructed in 1963.
The property was acquired by the tenant who had a three-year lease that included an option to purchase the property for $975,000 at the end of the lease. The contract rent for the three years was at $5,000 per month ($0.89/SF) on a modified gross basis. The tenant, who operates a veterinarian clinic, exercised the option to purchase in April 2025.
Resume of Sales
Sale No Subject 1 2 3 4 5 6
Sale Date N/A 10/30/2024 6/28/2023 4/30/2025 2/16/2024 2/29/2024 10/11/2023 City Gonzales Soledad Salinas Salinas Soledad Soledad Salinas Location 113 4th St. 415-417 Front St 843-847 S. Main 92 La Mesa Dr 1040 State St 515 Front St 1119-1121 Pajaro St APN 020-073-011 022-014-011 002-534-033 016-101-029 022-037-003 022-026-018 002-671-043 Year built No Record 1929 1975 1978 1963 1988 1958
Lot size 12,600 3,750 5,473 9,300 6,098 6,750 7,552
Building size 5,330 3,632 5,473 5,630 3,145 3,046 2,988 Floor area ratio 42.3% 96.9% 100.0% 60.5% 51.6% 45.1% 39.6% Zoning Public C-1 CR CR C-2 C-1 RL 5.5
Sale price N/A $550,000 $910,000 $975,000 $570,000 $605,000 $850,000 Price per sq. ft. N/A $151 $166 $173 $181 $199 $284
Packet Pg. 114 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 7
An income analysis of the sale indicates an overall rate of about 5.3% on first year income.
Sale 4: Sale 4 is located on State Street in Soledad, in an area composed mostly of commercial industrial and storage warehouses. The property is improved with a single story, low-cost commercial building and an attached 2-bed and 1-bath apartment unit. The commercial building is 2,600 square feet and divided into two units.
The property was offered for sale in May 2023 at an asking price of $598,000 and sold in February 2024 for $570,000. At the time of sale, the commercial building was vacant.
Sale 5: Sale 5 is another improved commercial sale located at 515 Front Street in Soledad. The property is improved with a two-unit, unreinforced masonry retail building that was constructed in 1928.
The property was offered for sale in January 2024 at an asking price of $575,000 and sold within one month for $605,000. At the time of sale, the retail units included a barber shop and an ice cream parlor. The units were rented at a below market rent of $0.44 per square foot.
Sale 6: Sale 6 is located in south Salinas in a mixed-use area of multi-family residential and several former residences and duplexes converted to offices. This property is a former duplex building that was converted to a two-unit office building. At the time of sale, the property was owner-occupied and used for a chiropractic business. One of the units continues to be used for a chiropractic office and the second unit for skin care. Market rent for the units is $2.25 per square foot and the sale indicates a first-year rate of return of about 7.0%.
Sale Adjustments:
The sale adjustment grid that follows summarizes the various adjustment applied in comparing the sales to the subject property.
Packet Pg. 115 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 8
In comparing the sales to the subject, quantifying adjustments is difficult due to the limited number of commercial sales in the market area and the sales that occurred do not necessarily provide a consistent pattern. For instance, Sales 2 and 3 are considered superior to Sales 4 and 5 and yet Sales 4 and 5 sold for a higher per square foot price. The difference in size would account for some of that, but not all
In review of the above, Sale 1 is considerably inferior to the subject and that sale brackets the low end of value at $151 per square foot. Sale 6 is considerably superior and based on that sale, the value of the subject is less than $284 per acre.
After adjusting the remaining four sales for differences in location and building size the adjusted range from these four sales is between $145 per square foot and $160 per square foot, from which the value range derived from the sales comparison approach is $155 to $165 per square foot. Hence, Resume of Sales and adjustments
Sale No Subject 1 2 3 4 5 6
Sale Date N/A 10/30/2024 6/28/2023 4/30/2025 2/16/2024 2/29/2024 10/11/2023 City Gonzales Soledad Salinas Salinas Soledad Soledad Salinas Location 113 4th St. 415-417 Front St 843-847 S. Main 92 La Mesa Dr 1040 State St 515 Front St 1119-1121 Pajaro St APN 020-073-011 022-014-011 002-534-033 016-101-029 022-037-003 022-026-018 002-671-043 Year built No Record 1929 1975 1978 1963 1988 1958
Lot size 12,600 3,750 5,473 9,300 6,098 6,750 7,552
Building size 5,330 3,632 5,473 5,630 3,145 3,046 2,988 Floor area ratio 42.3% 96.9% 100.0% 60.5% 51.6% 45.1% 39.6% Zoning Public C-1 CR CR C-2 C-1 RL 5.5
Sale price N/A $550,000 $910,000 $975,000 $570,000 $605,000 $850,000 Price per sq. ft. N/A $151 $166 $173 $181 $199 $284
Location Inferior (+) Superior (-10%) Superior (-10%) Inferior (+) Inferior (+) Superior (-) Bldg Size (per unit comparison) Superior (-) Comparable (=) Comparable (=) Superior (-) Superior (-) Superior (-) Overall percentage adjustment -10.0% -10.0% -20.0% -20.0% Adjusted price per sq. ft. (rnd.) $150 $155 $145 $160
Age and Condition Inferior (++) Comparable (=) Comparable (=) Inferior (+) Inferior (+) Superior (-) Income potential Inferior (+) Comparable (=) Comparable (=) Inferior (+) Inferior (+) Superior (-) Sales comparison approach - fee simple value range
Bldg Size 5330 5,330
Indicated value per square foot $155 $165
Indicated value from the sales comparison approach $826,150 $879,450 Rounded to $826,000 $880,000
Packet Pg. 116 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 9
Income Approach: The following table summarizes the income approach, which estimates value based on the income potential of the property.
Fee Simple Market Value Range Conclusion
Income approach - fee simple value range
Gross monthly rent Unit Size $/SF Totals
Unit 1 - Gonzales Medical Center 2,884 $1.30 $3,749
Unit 2 - Labcorp 923 $1.25 $1,154
Unit 3 - Vacant (Former Sun Street Center) 1,523 $1.20 $1,828 Total gross market monthly rent 5,330 6,731
Gross annual income $80,767
Less: Vacancy and collection loss 5.0% $4,038
Effective gross income $76,728
Operating Expenses
Fire insurance 5,330 $0.80 $4,264
Utilities $110 per month $1,320
Repairs & reserves 5.0% $3,836
Professional services 6.0% $4,604
Total expenses $14,024
Net income $62,704
Value range based on the capitalization rate
Capitalization rates 6.75% 6.00%
Estimated tax rate 1.15% 1.15%
Overall capitalization rate 7.90% 7.15%
Capitalized value $793,724 $876,981
Rounded to $790,000 $880,000
Sales comparison approach - fee simple value range $826,000 to $880,000 Income approach - fee simple value range $790,000 to $880,000 Market value conclusion $800,000 to $875,000
Packet Pg. 117 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 10
LEASED FEE VALUE RANGE
The Gonzales Medical Center Lease has a below market rent with 31 months remaining on the lease term. This creates a leased fee interest that has a lower value than the fee simple value. For this particular property, the leased fee value is measured by the present value of the rental difference between market rent and contract rent for the remaining lease term.
The following table summarizes the conclusion of the leased fee value range.
Unit 1 Market rent per month $3,750
Unit 1 Contract rent per month $500
Difference between contract rent and market rent -$3,250 Remaining term (months) from valuation date (6/1/2025) to lease termination (12/30/2027) 31 Present value of the income loss
Fee simple capitalization rate 6.75% 6.00%
Discount rate 8.00% 7.25%
Present value of the income loss -$90,749 -$93,115
Fee Simple Market Value Conclusion $800,000 to $875,000 Less: Present value of the income difference -$90,749 to $93,115 Leased fee value $709,251 to $968,115
Leased fee value rounded $710,000 to $780,000
Packet Pg. 118 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 11
CERTIFICATION – JOHN PIINI
I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions and conclusions.
• I have no present or prospective interest in the properties that are the subject of this report, and no personal interest with respect to the parties involved. • I have performed appraisal services regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • I have no bias with respect to the properties that are the subject of this report or to the parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
• I have made a personal inspection of the properties that are the subject of this report. • No one provided significant real property appraisal assistance to the person signing this certification.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this report, John W. Piini, MAI has completed the requirements of the continuing education program of the Appraisal Institute.
John W. Piini, MAI
Certified General Real Estate Appraiser
State of California, BREA Number AG005214
Packet Pg. 119 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 12
CERTIFICATION – CHAD PIINI
I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions and conclusions.
• I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved.
• I have appraised the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
• I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
• My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. • I have made a personal inspection of the property that is the subject of this report. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
Chad Piini
Certified General Real Estate Appraiser
State of California, BREA No. 3012020
Packet Pg. 120 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 1
LIMITING CONDITIONS
ASSUMPTIONS AND LIMITATIONS OF APPRAISAL
This appraisal is for no purpose other than property valuation, and the appraiser(s) is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations to the accuracy of the information and analyses contained in this appraisal. Before making any decision based on the information and analysis contained in this report, it is critically important to read this entire section to understand these limitations.
APPRAISAL IS NOT A LEGAL OPINION
No opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in the report.
No opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements, and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use.
It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. A comprehensive examination of laws and regulations affecting the subject property was not performed for this appraisal.
It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. Information and analysis shown in this report concerning these items is based only on a rudimentary investigation.
Any significant question should be addressed to local zoning or land use officials and/or an attorney.
It is assumed that all required licenses, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Appropriate government officials and/or an attorney should be consulted if an interested party has any questions or concerns on these items since the appraiser(s) has not made a comprehensive examination of laws and regulations affecting the subject property.
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Testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal unless a signed contract has been executed prior to the date of this report.
APPRAISAL IS NOT A SURVEY
No engineering survey has been made by the appraiser, and no responsibility is assumed in connection with such matters. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist.
It is assumed that the utilization of the land and improvements is within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted in the report.
All maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, and the reliability of the information contained on such is assumed by the appraiser(s) and cannot be guaranteed. A surveyor should be consulted if there is any concern on boundaries, setbacks, encroachments, or other survey matters.
APPRAISAL IS NOT AN ENGINEERING OR PROPERTY INSPECTION REPORT AND IS MADE UNDER CONDITIONS WITH
LIMITED DATA
This appraisal should not be considered a report on the physical items that are a part of this property.
Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraiser(s) is not a construction, engineering, environmental, or legal expert, and any statement given on these matters in this report should be considered preliminary in nature.
The appraiser(s) has inspected as far as possible, by observation, the land and the improvements; however, it was not possible to personally observe conditions beneath the soil or hidden structural or other components
The appraisal is based on the assumption that there are no hidden, unapparent, or apparent conditions of the property site, sub-soil, or structures or toxic materials which would render it either less or more valuable. The appraiser(s) is not an environmental nor health expert. No responsibility is assumed for any such condition or for any expertise or engineering to discover them.
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No opinion is expressed as to the value of subsurface oil, gas or mineral rights and that the property is not subject to surface entry for the exploration or removal of such materials except as is expressly stated.
No chemical or scientific tests were performed by the appraiser(s) on the subject property, and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted in the report. It is further assumed that the lot does not contain any type of dump site and that there are no underground tanks (or any underground source) leaking toxic or hazardous chemicals into the groundwater or the environment unless otherwise noted in the report. If any problems of this nature are known to the appraiser(s) which, in the appraiser's opinion would create a significant problem, they are disclosed in this report.
Nondisclosure should not be taken as an indication that such a problem does not exist, however. An expert in the field should be consulted if any interested party has questions on environmental factors. If it is found that any of the aforementioned is present, the value of the property may be adversely affected and a re-appraisal at additional cost will be necessary to estimate the effects of such.
Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition or other comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating system, air conditions system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested party is concerned about the existence, condition or adequacy of any particular item, we would strongly suggest that a construction expert be hired for a detailed investigation.
APPRAISAL REPORT LIMITATIONS
Appraisal reports are technical documents addressed to the specific technical needs of clients. Casual readers should understand that this report does not contain all of the information we have concerning the subject property or the real estate market. While no factors we believe to be significant but unknown to the client have been knowingly withheld, it is always possible that we have information of significance which may be important to others but which, with our limited acquaintance of the property and our limited expertise, does not seem to be important. On the other hand, appraisal reports are performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser (that go beyond the scope of the ordinary knowledge of an appraiser), the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information provided by others, etc.
Packet Pg. 123 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page
Before relying on any statement made in this appraisal report, interested parties should contact the Appraiser(s) for the exact extent of the data collection on any point which they believe to be important to their decision making. This will enable such interested parties to determine whether they think the extent of our data gathering process was adequate for their needs or whether they would like to pursue additional data gathering for a higher level of certainty.
Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendation to act. Any actions taken by you, the client, or any others should be based on your own judgment, and the decision process should consider many factors other than just the value estimate and information given in this report.
Appraisal reports made for lenders are technical documents specifically made to lender requirements.
Casual readers are cautioned about their limitations and cautioned against possible misinterpretation of the information contained in these reports.
Neither all nor any part of the contents of this report, especially any conclusions as to value or the identity of the appraiser or the firm to which appraiser is connected, shall be disseminated to the public for public communication purposes through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior written consent and approval of the author.
The estimated market value, which is defined in the report, is subject to change with market changes over time. Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimates consider the productivity and relative attractiveness of the property physically and economically in the marketplace as of the date of value.
The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised.
ACCEPTANCE OF APPRAISAL REPORT
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
This appraisal is an estimate of value based on an analysis of information known to the Appraiser(s) at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light, or if any Packet Pg. 124 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page 1
conditions become apparent not previously known to the appraiser(s) which would affect the value of the property, the value given in this report is subject to change without notice and a re-appraisal at additional cost will be necessary.
Acceptance and/or use of this appraisal report by the client or any third party constitutes acceptance of the above conditions. Appraiser liability extends only to the stated client and not to subsequent parties or users, and the liability is limited to the amount of fee received by the appraisers(s).
Packet Pg. 125 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Restricted Appraisal Report – 113 4th Street Page
QUALIFICATONS OF THE APPRAISER
JOHN W. PIINI, MAI
John W. Piini, MAI has been engaged in the real estate business since 1975. From 1975 to 2008 the majority of real estate activity was in appraising and since 2008 he has been active in both real estate appraisals and brokerage. The majority of appraisal assignments involve acreage and agricultural properties prepared for attorneys, land trusts and property owners throughout Monterey, San Benito, and southern Santa Cruz and southern Santa Clara Counties. He is qualified as an expert witness in the Superior Courts of Monterey, San Benito, Santa Cruz and Santa Clara Counties.
Academic Background
Formal Education
University of California, Los Angeles, BA degree -1974
Appraisal Education
John Piini obtained his MAI designation from the American Institute of Real Estate Appraisers in 1983 after completing the required courses, examinations and experience review requirements.
Since 1983, John Piini has completed a number of appraisal courses and seminars and is current with the BREA continuing education requirements and has completed the continuing education program for Designated members of the Appraisal Institute.
Professional Experience
1975 - 1983 Associate appraiser with Joe Piini, MAI
1983 - 2008 Part owner of Piini Realty, a family owned and operated real estate firm involved in appraising, brokerage, development and management. 2008 - present In 2008 John Piini became the sole owner of Piini Realty and obtained his California Brokers license. For the past decade, real estate activities focus primarily on appraising and marketing agricultural properties.
Appraisal Assignments
The majority of assignments pertain to the valuation of agricultural and acreage properties for a variety of purposes including estate planning, conservation easements, trust management and financial lending. Valuations of commercial, industrial special-use, residential and development properties are also performed.
Professional affiliation and memberships
MAI Designation with the Appraisal Institute – Certification Number 6708 California Certified General Real Estate Appraiser – BREA # AG005214 California Licensed Real Estate Broker – BRE # 00542238 Monterey County Board of Realtor
Packet Pg. 126 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Packet Pg. 127 Attachment: Old Medical Building 113 Fourth St (3374 : Presentation on City Property Appraisals) Wastewater Program
1 Packet Pg. 128 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater AGENDA
ITEM
10 2025 Wastewater Milestones
1. Received 6 Bids for the IW Treatment Facility (IWTF) (February 2025)
2. Secured SRF Planning Grant for MWWTP Upgrades (April 2025)
3. Issued Contract Award for the IW Treatment Facility (May 2025)
4. Completed IW Conveyance System Project (June 2025)
5. Began Construction of the IW Treatment Facility (July 2025)
6. Secured an SRF Loan Extension (August 2025)
7. Kicked off the MWWTP Upgrades Planning Project (August 2025)
8. Continued Infiltration Improvements at the MWWTP (January 2025 – Present)
9. Released MH Rehabilitation Project for Bid (September 2025) 2 Packet Pg. 129 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater IW Conveyance Project Completion
3 Project Accepted: July 21, 2025
Original Construction Bid: $7,610,175.00
Final Construction Cost: $7,467,595.36
Original Total Project Budget: $8,775,000
Final Total Project Cost: ~$8,280,000
Packet Pg. 130 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater IWTF Bid Results and Contract Award
4 February 26, 2025: 6 Bids Received
• Gateway Pacific: $21,938,000 – AWARDED May 19, 2025
• Specialty Construction: $22,219,663
• Clark Brothers: $22,447,500
• SCEI: $22,813,420
• Don Cascade: $24,640,726
• Anderson Pacific: $27,968,100
Packet Pg. 131 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater SRF IW System Loan Extension
5 $6M loan extension secured from SRF
$34,884,000 total loan amount
Accommodated by the 2023 Rate Study
Packet Pg. 132 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater Construction of IWTF
6 • 95 % Complete Grading • Upcoming: Influent Wet Well Excavation • Completion: March 2027 Packet Pg. 133 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater Construction of IWTF
7 Packet Pg. 134 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater MWWTP Planning Grant
8 $300,000 SWRCB Grant Awarded
MWWTP Rehabilitation Planning Study
◦ Kickoff Meeting August 2025
◦ Site Walk October 2025
◦ Completion April 2026
Packet Pg. 135 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater MWWTP Emergency Infiltration Work
9 • Additional Basins and Flood Lanes Constructed
• Bioaugmentation Alternatives being Evaluated
• Dechlorination System being Evaluated
• Pricing Rehabilitation of MWWTP Infiltration Basins A and C.
Packet Pg. 136 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater 2025-26 Wastewater Work Plan
1. Industrial Wastewater System
2. Municipal Wastewater System
3. Adopt Updated Sewer Ordinance with Pretreatment Program for Industrial Dischargers
11 Packet Pg. 137 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater Industrial Wastewater System
12 1. Continue IW Treatment Facility Construction
2. Apply for RWQCB Discharge Permit for IWTF
Packet Pg. 138 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater Municipal Wastewater System
13 1. Manhole Rehabilitations
2. Clean, Video Inspect and Rehabilitate Existing 21” Sewer Trunk Main
3. Install Additional Groundwater Monitoring Wells at MWWTP
4. Finalize MWWTP Rehabilitation Plan
5. Issue RFP for Wastewater Master Plan
Packet Pg. 139 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater Adopt Updated Sewer Ordinance with
Pretreatment Program
14 Packet Pg. 140 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater Wastewater Program
15 Questions and Comments
Packet Pg. 141 Attachment: Updates on Wastewater System Projects (3373 : Updates on Wastewater