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
9 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.
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:
• 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