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
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
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 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.
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.
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.
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 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 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
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
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.
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.
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.
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).
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