Agenda, regular meeting — Gridley City Council, August 17, 2026

GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 8-17-26 Page 1 of 3 “Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.” The Public is encouraged to attend and participate in person. Comments from the public on agenda items will be accepted until 4 pm on August 17, 2026, via email to [email protected] or via the payment/document drop box at Gridley City Hall and will be conveyed to the Council for consideration.

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CALL TO ORDER - Mayor Farr

ROLL CALL
PLEDGE OF ALLEGIANCE – Councilmember Roberts
PROCLAMATION – None

INTRODUCTION OF NEW OR PROMOTED EMPLOYEES
• Mike Clayton - Electrical Ground Support worker
• Alex Barajas - Lineman
COMMUNITY PARTICIPATION FORUM - Members of the public may address the City Council on matters not listed on the agenda. The City Council may not discuss nor take action on any community participation item brought forward by a member of the community. Comments are requested to be limited to three (3) minutes.

CONSENT AGENDA - None

ITEMS FOR CONSIDERATION

1. Acquisition of Real Property – 860 Cedar Street
The City Council to consider purchasing 860 Cedar St. from Butte County for a future sewer lift
Recommended Action(s):

Gridley City Council – Regular Meeting Agenda
Monday, August 17, 2026; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 8-17-26 Page 2 of 3 a. Approve the purchase of the real property located at 860 Cedar Street, Gridley, California (APN 010-123-007) from the County of Butte for a purchase price of $125,000, plus customary closing and transaction costs;
b. Approve Resolution 2026-R-029: a Resolution of the City of Gridley authorizing a supplemental appropriation for the acquisition of real property located at 860 Cedar St. c. Authorize the City Administrator to open escrow and make the necessary arrangements to proceed with the acquisition, including coordinating with the County of Butte, escrow, title, and other applicable parties; and
d. Authorize Mayor to execute the necessary escrow and transaction documents on behalf of the City, subject to review and approval as to form by the City Attorney.

2. Pink Patches Fundraiser – Gridley Police Department
City Council to consider approval of the Police Department Commemorative Pink Patch Fundraiser Benefiting Orchard Hospital’s Breast Cancer Screening/Mammography Program Recommended Action(s):
a. Authorize the Gridley Police Department to conduct a commemorative pink police patch fundraiser and authorize the donation of all net proceeds to Orchard Hospital’s Breast Cancer Screening/Mammography Program in support of community healthcare initiatives

3. Tentative Parcel Map 1-26: Woodruff
Council to review and approve Resolution 2026-R-029: a Resolution accepting and approving TPM 1-26: Woodruff the tentative parcel map for 800, 804, and 820 Spruce Recommended Action(s):
a. Approve Resolution 2026-R-030: a Resolution of the City of Gridley approving TPM 1-26 (APN 009-122-004) for the division of one parcel into two (2) parcels located at 800, 804 and 820 Spruce Street
COUNCIL COMMITTEE REPORTS - Brief reports on conferences, seminars, and meetings attended by the Mayor and City Council members, if any.

CITY ADMINISTRATOR REPORTS - Brief updates and reports on conferences, seminars, and meetings attended by the City Administrator, if any.

DEPARTMENT UPDATE REPORTS – Brief updates and reports on City services as it pertains to each department, if any.

POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):

Master Fee Schedule Study Session 9/8/2026
Noise Ordinance Amendment 9/8/2026
GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 8-17-26 Page 3 of 3 AMI Metering 9/8/2026
Electric Distribution System Study 9/8/2026
Records Retention RFP 9/8/2026
Code of Conduct Handbook 10/19/2026
CLOSED SESSION –

4. LIABILITY CLAIMS Cal. Gov. Code Section 54956.95(a): Claimant: Leon B. Ward; Agency Claimed Against: City of Gridley
ADJOURNMENT – adjourning to a regular meeting on September 7, 2026.

NOTE 1: POSTING OF AGENDA- This agenda was posted on the public bulletin board at City Hall at or before 6:00 p.m., August 14th, 2026. This agenda along with all attachments is available for public viewing online at www.gridley.ca.us and at the Administration Counter in City Hall, 685 Kentucky Street, Gridley, CA.

NOTE 2: REGARDING UNSCHEDULED MATTERS – In accordance with state law, it shall be the policy of this Council that no action shall be taken on any item presented during the public forum or on unscheduled matters unless the Council, by majority vote, determines that an emergency situation exists, or, unless the Council by a two-thirds vote finds that the need to take action arose subsequent to the posting of this agenda.

City Council Agenda Item #1
Staff Report
Date: August 17, 2026
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Acquisition of Real Property – 860 Cedar Street Recommendation
Staff recommends that the City Council:

1. Approve the purchase of the real property located at 860 Cedar Street, Gridley, California (APN 010-123-007) from the County of Butte for a purchase price of $125,000, plus customary closing and transaction costs;

2. Approve Resolution 2026-R-029: a Resolution of the City of Gridley authorizing a supplemental appropriation for the acquisition of real property located at 860 Cedar St.

3. Authorize the City Administrator to open escrow and make the necessary arrangements to proceed with the acquisition, including coordinating with the County of Butte, escrow, title, and other applicable parties; and

4. Authorize Mayor to execute the necessary escrow and transaction documents on behalf of the City, subject to review and approval as to form by the City Attorney.

Background
In early 2025, Butte County contacted the City of Gridley regarding the potential sale of the Countyowned property located at 860 Cedar Street, Gridley, California (APN 010-123-007). Since that time, City and County representatives have participated in multiple collaborative discussions and meetings to evaluate the property and determine whether acquisition would be beneficial to the City's long-term operational needs.

The property was previously utilized by Butte County Public Works as a Public Works yard and is located adjacent to the City's existing Public Works operations.

The property is approximately 0.20 acres and contains an existing industrial warehouse and office space.

The appraisal identifies the property's General Plan designation as Public and zoning as Public & QuasiPublic, with public works facilities and utility yards identified as permitted uses. The surrounding area is characterized as primarily industrial in nature.

There is an existing warehouse and office space that is older but can considered for as a temporary space to store equipment until improvements are made to use the site as a city sewer lift station.

Accordingly, the acquisition is being considered primarily for the City's long-term property control and operational needs, rather than the condition or value of the existing building improvements.

X Regular
Special
Closed
Emergency
As part of the City's review, Public Works Director Jerry Cox and City Administrator Elisa Arteaga reviewed available information regarding potential historical underground storage tanks and hazardousmaterial concerns associated with the property's prior use. Staff also consulted with Thomas Parker, Program Manager, Hazardous Materials, as part of this review. Based on the information reviewed and discussions conducted to date, staff have not identified any known underground storage tank or hazardous-material issue that would preclude the City from proceeding with the proposed acquisition.

An independent appraisal was completed by Evans Appraisal Service, Inc. The appraisal was prepared in accordance with USPAP and established an As Is Market Value of $125,000, based on a valuation date of February 3, 2026.

The proposed acquisition is intended, in part, to support the City's long-term sewer infrastructure needs. The property is strategically located in an area where continued growth and development may require additional sewer collection and conveyance infrastructure, including the potential construction of a future sewer lift station and associated improvements.

Acquisition of the property at this time would allow the City to secure and maintain control of a site that may be necessary for future sewer system improvements before additional development occurs or property availability becomes more limited. The acquisition therefore supports the City's long-term planning for sewer system capacity and infrastructure necessary to serve future development.

To the extent authorized by the City's adopted sewer impact fee or capacity charge program and applicable law, sewer impact fee revenues may be used toward the acquisition cost attributable to future sewer facilities. The City will maintain documentation demonstrating the relationship between the expenditure and the sewer infrastructure needs associated with new development and future system capacity.

The existing warehouse and office improvements are not the primary basis for the proposed use of sewer impact fee revenues. Rather, the sewer-related basis for the expenditure is the acquisition and control of the underlying property for potential future sewer infrastructure, including a sewer lift station, associated pipelines, access, equipment, and other improvements necessary to support the sewer collection and conveyance system.

If portions of the property are ultimately used for general Public Works operations, storage, or another municipal purpose unrelated to eligible sewer infrastructure, the City will evaluate those uses separately and, where appropriate, allocate costs to another eligible funding source.

Restricted sewer impact fee revenues will be used only for costs that are reasonably attributable to the purposes for which those fees were collected.

Based on the property's location, growth and development of the existing area, proximity to existing City Public Works facilities, potential for infrastructure improvements as a sewer lift station for future municipal use, the City's due diligence to date, and the independent appraisal supporting the proposed purchase price, staff recommends proceeding with the acquisition.

Financial Impact
The proposed acquisition would require an expenditure of $125,000 for the purchase price, in addition to customary closing, escrow, title, recording, and other transaction-related costs.

Funding for the acquisition would be provided from account 650-4652-56100 – Sewer Town Equipment Account. (For Accounting purposes, a transfer out from Sewer Reserve account 660-0000-52760 to Transfer In Sewer 650-0000-49765).

Capital Improvements to the to the property for a for a sewer lift station, would be considered subject to future funding, and City approval, as applicable.

Compliance with City Council Strategic Plan or Budget Goals The proposed acquisition supports the City's long-term management of municipal property and infrastructure by providing additional property adjacent to existing Public Works operations and maintaining municipal control over property that may support future operational needs.

Attachments
Evans Appraisal Service, Inc. – Appraisal Report for 860 Cedar Street Resolution 2026-R-029
RESOLUTION NO. 2026-R-029

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRIDLEY AUTHORIZING A SUPPLEMENTAL APPROPRIATION FOR THE ACQUISITION OF REAL PROPERTY LOCATED AT 860 CEDAR STREET

FOR THE CITY'S SEWER LIFT STATION PROJECT
WHEREAS, the City of Gridley has been evaluating the acquisition of real property located at 860 Cedar Street, Gridley, California (APN 010-123-007) from the County of Butte; and WHEREAS, the property was previously utilized as a Butte County Public Works yard and is located adjacent to the City's existing Public Works operations; and WHEREAS, acquisition of the property is to facilitate the City's sewer lift station project and will provide the City with property necessary to support the project; and WHEREAS, the City has engaged in discussions with Butte County regarding the potential acquisition of the property since early 2025 and has conducted due diligence regarding the property and its suitability for the City's intended use; and WHEREAS, an independent appraisal established an As Is Market Value of $125,000 for the property; and
WHEREAS, the City Council desires to establish sufficient budget authority to fund the acquisition of the property and associated transaction costs; and WHEREAS, funding is available for transfer from the applicable fund to provide funding for the acquisition
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

SECTION 1. The City Council hereby authorizes a $125,000 interfund transfer from Sewer Reserve Fund 660 to Sewer Operating Fund 650 for the acquisition of real property located at 860 Cedar Street for the City's sewer lift station project.

SECTION 2. The City Council hereby authorizes a $125,000 supplemental appropriation from Expense Account 650-4652-56100 for the acquisition of 860 Cedar Street for the City's sewer lift station project.

SECTION 3. The City Administrator is authorized to take the necessary administrative actions to implement the budget adjustments authorized by this Resolution, including coordinating the interfund transfer and establishing the necessary budget authority.

I HEREBY CERTIFY that the foregoing resolution was introduced, passed, and adopted by the City Council of the City of Gridley at a regular meeting held on the 17th day of August, 2026 by the following vote:

AYES: AGENCY MEMBERS
NOES: AGENCY MEMBERS
ABSTAIN: AGENCY MEMBERS
ABSENT: AGENCY MEMBERS
ATTEST: APPROVE:
____________________________ ________________________________ Elisa Arteaga, City Clerk Michael W. Farr, Mayor

APPRAISAL REPORT
THE SUBJECT PROPERTY LOCATED:
860 Cedar Street,
Gridley, CA 95948

REPORT PREPARED FOR
Gridley Public Works
2081 Second Street,
Oroville, CA 95965
Attention: Katie McAuliffe
2 February 17, 2026
Gridley Public Works
2081 Second Street,
Oroville, CA 95965
Attention: Katie McAuliffe
Dear Katie:

In accordance with your request, I have prepared an opinion of the As Is Market Value of the subject property, which is located at 860 Cedar Street, Gridley, CA 95948. I have valued this property as of the valuation date of February 3rd, 2026, noting that the subject was inspected on February 3rd, 2026.

This appraisal report is prepared in compliance with the Uniform Standards of Professional Appraisal Practice, (USPAP). By reason of my investigation and by virtue of my experience, I have been able to form and have formed the opinion that the requested As Is Market Value of the subject property, as of the valuation date of February 3rd, 2026, is as follows:

AS IS MARKET VALUE:…………....……..…………....$125,000
Your attention is respectfully invited to the following report, which contains certain exhibits and factual data upon which the value conclusions are partially predicated.

Respectfully submitted,
____________________________
Michael H. Evans, FASA, FRICS
California State Certified General
Real Estate Appraiser #AG002019
Recertified until October 28, 2026
3 TABLE OF CONTENTS

TITLE PAGE

LETTER OF TRANSMITTAL

TABLE OF CONTENTS

INTRODUCTION
EXECUTIVE SUMMARY.................................................................................... -4- THE APPRAISAL PROCESS............................................................................. -5- SCOPE OF APPRISAL ...................................................................................... -6- COMPETENCY.................................................................................................. -7- PURPOSE AND INTENDED USE OF APPRAISAL........................................... -8- MARKET VALUE DEFINED............................................................................... -8- IDENTIFICATION OF THE SUBJECT PROPERTY........................................... -9- PROPERTY RIGHTS APPRAISED.................................................................... -9- DEFINITION OF FEE SIMPLE ESTATE............................................................ -9- DATE OF VALUATION ...................................................................................... -9- ASSUMPTIONS AND LIMITING CONDITIONS................................................. -9- BUTTE COUNTY REGIONAL MAP ................................................................. -12- BUTTE COUNTY AREA ANALYSIS ................................................................ -13- IMMEDIATE AREA MAP & ANALYSIS............................................................ -23- NATIONAL FLOOD INSURANCE PROGRAM ................................................ -26- GENERAL PLAN AND ZONING ...................................................................... -27- TAXES…….….................................................................................................. -30-

PHYSICAL DESCRIPTION
SUBJECT PHOTOGRAPHS............................................................................ -31- ASSESSOR'S PLAT ........................................................................................ -34- PHYSICAL DESCRIPTION .............................................................................. -36- STATEMENT OF OWNERSHIP ...................................................................... -40- HIGHEST AND BEST USE.............................................................................. -40-

ANALYSIS
SALES COMPARISON APPROACH ............................................................... -43- COST APPROACH TO VALUE ....................................................................... -68- INCOME APPROACH...................................................................................... -70- RECONCILIATION OF VALUES...................................................................... -73- CERTIFICATION OF VALUE........................................................................... -74-

ADDENDA
SALES SUMMARY .......................................................................................... -76- SALES MAP..................................................................................................... -77- QUALIFICATIONS OF MICHAEL H. EVANS, FASA........................................ -79- REFERENCES…….…..................................................................................... -84- LEGAL DESCRIPTION .................................................................................... -85- 4 EXECUTIVE SUMMARY
Appraisal Type: Appraisal report
Property Type: Industrial Warehouse
Addresses of Property: 860 Cedar Street, Gridley, CA 95948 Land Configuration: Square shaped
Lot Size: 0.20 gross acres
Improvements: Industrial Warehouse
General Plan: Public
Zoning: Public & Quasi-Public
Highest and Best Use: Light Industrial
Property Rights Appraised: Fee Simple Estate
Date of Valuation: February 3rd, 2026
Values by All Approaches:

SALES COMPARISON APPROACH $115,000
COST APPROACH $117,000
INCOME APPROACH $139,000
Final Opinion of Value:

AS IS MARKET VALUE:…………....……..…………...$125,000
5 THE APPRAISAL PROCESS
The appraisal process is an orderly procedure of gathering information from the market which will lead to an opinion of value. This information is obtained from many sources, but the best source is through recent sales of similar type properties. All sales used are examined and confirmed by either, the buyer, the seller, or a party knowledgeable to the transaction. All pertinent facts from the sales are analyzed, classified, and interpreted for use in the approaches to value.

There are three approaches to value that are considered when arriving at an opinion of value for real estate. These are the Sales Comparison Approach, the Cost Approach, and the Income Approach.

The Sales Comparison Approach is a method of comparing recent sales of similar properties to the subject properties. This approach is based on the principle that the prudent investor would pay no more for a property than the cost of acquiring a satisfactory alternative property that possesses physical, economical, and financial comparability. The value of a particular property tends to coincide to the value indicated by the actions of informed buyers and sellers in the marketplace for similar properties. A number of sales are investigated in order to determine the value of the subject properties. A discussion and analysis of the sales are provided and adjustments are typically made for date of sale, physical and economical characteristics, and terms of sale or financing.

In the Cost Approach, the value of the land is estimated from market data. Next, the replacement cost of the buildings is estimated and the accrued depreciation is estimated and subtracted from the replacement cost estimate, providing an indication of the contributing value of the buildings. The estimated value of the land, added to the contributing value of the buildings, results in an opinion of value.

The Income Approach is based on an accurate measurement of a property's productivity under typical management, a conversion of the yields into gross and net income, and capitalization of this net income into an indication of the As Is market value. Whenever possible, all three approaches should be used. One approach, however, will often be given greater weight than the others, depending on the type of property, the most convincing factual data available, and the objective of the appraisal. 6 SCOPE OF APPRAISAL
This is an "appraisal assignment" as defined by the American Society of Appraisers and the Royal Institution of Chartered Surveyors within the standards of professional practice. The services resulting from this assignment have been performed in a manner consistent with the requirements of this organization and the analysis, opinions, and conclusions are those of a disinterested third party.

All appropriate data deemed pertinent to the solution of the appraisal problem has been collected, confirmed, and reported in conformity with the standards of professional practice and the code of professional ethics of the American Society of Appraisers and the Royal Institution of Chartered Surveyors. This appraisal report reflects a summary of the data, analysis, opinion, and conclusions of the author.

For completion of this appraisal assignment, a preliminary survey is conducted; the property to be appraised is inspected. Based upon this inspection a search for relevant market data is completed.

By use of county records, and various real estate listing services, some local and some national, a sales search is conducted for transactions involving properties which meet the criteria deemed by the appraiser to be appropriate for comparison to the subject. In addition, listings are obtained from knowledgeable sources within the area of the subject, including real estate brokers and participants within the real estate market. The sales information collected is then screened, inspected, confirmed, and analyzed for use within the comparison process.

Supplementary information such as comparative costs, rents, and market data are collected from knowledgeable sources as necessary, as well as from files maintained for this purpose within the office of the appraisal firm.

The data is analyzed through the appropriate approaches to value explained in the Analysis section of this report and finally, the appraisal containing the description, analysis, and conclusions is completed.
7 Note that in valuing the subject property, three approaches will be considered: the Sales Comparison Approach, which will be the most meaningful in valuing the subject property, considering the nature of this assignment; the Cost Approach which will be less applicable due to the age of the improvements; and the Income Approach, which will carry the least consideration in the valuation process, due to the nature of this site being often owner occupied, with a significant lack of supportive market information in the subject’s town.

Significant professional assistance was provided by Quinn Hawkinson. He assisted in collecting and analyzing the comparable sales data, researching the sales data provided and reviewing the report.

He used all appraisal methods customarily used for a particular property type and assisted in the evaluation process of the comparables for the subject.

Michael H. Evans personally inspected the site and supervised the appraisal process from beginning to end and concluded the final value opinion of the subject property.

COMPETENCY
The Uniform Standards of Professional Appraisal Practice (USPAP) require that prior to accepting any assignment or entering into an agreement to perform any assignment, an appraiser must properly identify the problem to be addressed and have the knowledge and experience to complete the assignment completely or alternatively:

1. Disclose the lack of knowledge and/or experience to the Client before accepting the assignment.

2. Take all steps necessary or appropriate to complete the assignment competently.

3. Describe the lack of knowledge and/or experience and the steps taken to complete the assignment competently in the report.

The author of this report has had previous experience appraising real estate in the subject’s area and is familiar with the geographical area in which the property is located. Furthermore, properties which are physically and economically similar to the subject property have been common appraisal assignments. The author believes that he possesses the knowledge and experience to complete this assignment competently.
8 PURPOSE AND INTENDED USE OF APPRAISAL
The purpose of this appraisal report is to form an opinion of the As Is Market Value of the subject property as of the valuation date of February 3rd, 2026. The intended use of this appraisal report is to assist the client in making financial decisions regarding the subject property.

CLIENT AND INTENDED USER OF APPRAISAL
Gridley Public Works is the client and the intended user of this appraisal report.

MARKET VALUE
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date, and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated;

2. Both parties are well informed or well advised, and acting in what they consider their own best interests;

3. A reasonable time is allowed for exposure in the open market;

4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and

5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale1.

EXPOSURE AND REASONABLE MARKETING TIME
Per the definition section of the 2024 version of USPAP, "Exposure Time" is defined as follows: “an opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal."
A reasonable marketing time is defined as six months to one year. This time period corresponds with the typical listing period for properties of the subject type and is the typical time period during which comparable sales used in this appraisal were consummated. 1 (Office of the Comptroller of the Currency, [OCC] 1 under 12 CFR, Part 34, Subpart C-Appraisals, 34.42 Definitions [g], 01/01/04 edition)
9 The marketing time defined assumes adequate market exposure and diligent effort to sell through typical marketing techniques. The typical market time for this area, as of the valuation date is estimated to be 180 to 360 days. It is noted that the exposure time and the marketing time are considered to be the same for the subject property.

IDENTIFICATION OF THE SUBJECT PROPERTY
The subject property is identified in a legal description located in the Addenda section of this appraisal report. The Butte County Assessor's office identifies the subject property as Assessor's Parcel Number: 010-123-007. A Copy of the Assessor’s Map is located in the Physical Description section of this report. This map shows the basic outline of the subject property, and its relationship with the surrounding area.

PROPERTY RIGHTS APPRAISED
The rights of the subject property to be appraised are for the fee simple estate of the entire property.

The definition of Fee Simple Estate is as follows:

DEFINITION OF FEE SIMPLE ESTATE
Absolute ownership unencumbered by any other interest or estate; subject only to the limitations of governmental powers of taxation, eminent domain, police power, and escheat.2

DATE OF VALUATION
I have valued this property as of the valuation date of February 3rd, 2026, noting that the subject was also inspected on February 3rd, 2026.

ASSUMPTIONS AND LIMITING CONDITIONS
1) That I assume no responsibility for matters legal in character, nor do I render any opinion as to the title, which is assumed to be good and marketable. All existing liens and encumbrances securing payment of money have been disregarded, and the property is appraised as though free and clear under responsible ownership and competent management.
2) That although dimensions are taken from sources considered reliable and verifying, measurements were made and such verification should not, in any way, be construed as a survey.

Areas not calculated by an engineer are not guaranteed accurate from an engineering standpoint. 2 The Appraisal of Real Estate, 12th Edition, Page 68
10 3) That legal descriptions, as furnished, are assumed to be correct. 4) That information obtained for use in this appraisal is believed to be true and correct to the best of my ability; however, no responsibility is assumed for errors or omissions, nor for any information not disclosed which might otherwise affect the valuation opinion. However, the appraiser reserves the right to consider and evaluate such data upon its disclosure. 5) That there exist no undisclosed restrictions or prohibitions concerning the possible use or development of the property for any purpose for which it is available. 6) That no responsibility is assumed for any condition not readily observable from the customary inspection of the premises, which condition might affect the valuation, except those items specifically mentioned in this report.
7) That exhibits included herein are to assist in visualizing the property and the surrounding area and are not to be construed to be the result of a survey. 8) That oil, gas, and mineral rights were not considered in making this appraisal unless otherwise stated.
9) That possession of this report, or a copy thereof, does not carry the right of use for any purpose for any but the client or their authorized agent without first obtaining the written consent of the author.
10) That testimony or attendance in court, by reason of this appraisal with reference to the property in question, shall not be required unless prior arrangements are made. 11 11) Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value opinion is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

The Four Forces
As indicated in the Appraisal Process section of this report the Four Forces constitute an important portion of the valuation process. How these forces affect the region and/or neighborhood has to be addressed. It is noted that regions and or neighborhoods can offer different advantages to its inhabitants and are said to differ in quality. The quality of a region or a neighborhood can best be judged in terms of the needs and standards of its occupants. The major factors that affect the quality of any area can be grouped as physical, economic, social, and political in nature. These major factors are often referred to as the four forces, which affect the Market Value of any type of property within a defined region or neighborhood. Typically, the area surrounding any property being appraised can only be understood via an analysis of the county, city or town, and the immediate area where this property exists. It is noted that the immediate area analysis is considered to be a direct indication of the way the four forces influence the overall marketability of a property.

Based on the above, the author of this report researched and reported analyses of Butte County, and the immediate area where this property is located. They are as follows on the next pages:

BUTTE COUNTY AREA MAP
13 BUTTE COUNTY ANALYSIS
Location and History
Butte County is centrally located on the east side of California's Sacramento Valley. The county extends easterly from the Sacramento River into the Sierra Nevada Foothills. Butte County was one of 27 original counties in California, officially established on February 18, 1850. At that time, it included all of the area that is now Plumas County, as well as parts of Sutter, Colusa, Tehama, and Sierra Counties. The county seat is located in Oroville, 65 miles north of Sacramento, the state capital. The five incorporated cities in Butte County, from largest to smallest, are Chico, Paradise, Oroville, Gridley, and Biggs.

Named in 1887 for renowned British botanist, Sir Joseph Dalton Hooker, the Hooker Oak in Chico was widely regarded as the largest Valley Oak in the world until its collapse in a 1977 windstorm. Covering over 18,000 square feet of ground with the shade from its branches, the Hooker Oak stood over 105 feet tall and its trunk had a circumference of 28 feet. On the day it fell, the Hooker Oak was estimated to be 326 years old.

Environmental Characteristics
Butte County covers 1,670 square miles, or 1,068,800 acres, of which 85% are privately owned. There is also extensive acreage in the national forest and state parks. The elevation varies from 60 feet on the valley floor to over 7,000 feet in the mountains. Two-thirds of the county's acreage is mountainous. The eastern portion of the county contains waterfalls and canyons. Feather Falls, at 640 feet, is second only to the falls of Yosemite in regards to waterfall heights in California, as well as being the sixth tallest in the United States. The balance of the county is fertile, alluvial flood plain along the Sacramento River, on its northwesterly side and on the south-central portion of the Feather River. The loam soils of the valley floor include some of the most versatile in the world.

The basin lands in the southwest portion of the county include heavy clay soils that are mainly utilized for rice production. The most extensive water development program in the United States is centered in Butte County. Oroville Dam is the key unit in the California Water Plan. 14 It is the world's largest earth-filled embankment with a developed lake, as well as being the nation’s tallest dam. Lake Oroville has a shoreline of 168 miles.

The Sacramento and Feather Rivers, together with their tributaries, contribute to an ample supply of water for domestic, agricultural, and industrial needs. They also combine with the County’s numerous lakes to provide recreational opportunities. The Butte County climate is warm and dry in the summer, with the winters being mild and pleasant. The average rainfall in the valley and the foothills is 20 inches per year. Historically, the mountains have accumulated a snow pack ranging from 30 inches to as much as 200 inches, thereby assuring a generous amount of runoff during the spring and summer. However, over the past ten years, the winter precipitation has been less predictable and has caused near-drought conditions during several of the summers. Most of Butte County's agricultural land is irrigated with water obtained from wells. While some of the wells have had to be deepened due to the lowering of the water table, the overall supply of irrigation water has not been substantially impacted through the drought and semi-drought years. Cities and counties from areas further south have expressed their interest in purchasing both surface and ground water from Butte County. In addition, there have been increased environmental demands to provide a sufficient amount of water to maintain migrating fish populations in the various rivers and streams of Northern California.

These conflicting demands on water between rural, urban, and natural uses will continue into the foreseeable future and insure that concerns regarding water remain in the forefront for years to come.

Camp Fire
The Camp Fire was the deadliest and most destructive wildfire in California history. It is also the deadliest wildfire in the United States since the Cloquet fire in 1918 and is high on the list of the world's deadliest wildfires; it is the sixth-deadliest U.S. wildfire overall. It started on November 8, 2018, and was caused by Electrical Fire Transmission by PG&E; the fire reported a loss of 16.5 billion USD, noting that a total of 18,804 buildings were destroyed mostly in Paradise with few in Concow. Additionally thousands of acres were burnt along with their natural vegetation and many lives were lost.
15 Social Characteristics
As of July 1, 2024, Butte County had an estimate total population of 208,334 as per the United States Census, which is less than a 1.6% decrease compared to 2020. Butte County is serviced by the Western Pacific, Southern Pacific, and Sacramento Northern Railroads. State Highways 70 and 99 East run through Butte County, both being major thoroughfares in Northern California. The county interior road system provides access to most areas in the county and is adequately maintained. There are commercial airports in both Oroville and Chico.

Recreational Characteristics
Butte County is home to many recreational opportunities. Chico is home to the fourth largest municipal park in the nation. Annie Bidwell, widow of Chico’s founder General John Bidwell, donated over 2,200 acres to the City of Chico to be used as a public park. Since that time, the City of Chico has added to the original acreage, creating a park that now encompasses close to 3,700 acres. Lake Oroville is home to a multitude of recreational activities. All types of water sports are possible at Lake Oroville, as well as hiking, fishing, camping, horseback riding, and mountain biking in the areas surrounding Lake Oroville. The first suspension bridge ever built in California, the Bidwell Bar Suspension Bridge, is California State Historical Landmark Number 314. When built in 1856, the Bidwell Bar Bridge crossed over the Feather River at Bidwell Bar.

Due to flooding that occurred with the construction of the Oroville Dam, the bridge was relocated to Bidwell Canyon for preservation purposes where, in 1954, it was closed to all but pedestrian traffic.
16 Economic Characteristics
According to the California Employment Development Department, the average unemployment rate in Butte County in 2025 was 6.07% noting that as of 2024 the rate increased to 5.90%, compared to 2023. See the following historical breakdown:

January 23, 2026 Employment Development Department
March 2024 Benchmark Labor Market Information Division, (916) 262-2162 Data Not Seasonally Adjusted http://www.labormarketinfo.edd.ca.gov Historical Civilian Labor Force
Chico MSA
(Butte County)
Notes: 1) Data may not add due to rounding. The unemployment rate is calculated using unrounded data. 2) Labor force data for all geographic areas for 1990 to 2025 now reflect the March 2024 annual revision (or benchmark), Census Vintage 2023 (for years 2020-2025 estimates) and Synthetic Population Estimates (for years 2016-2019 estimates) population controls at the state level.
2025 Labor Force Employment Unemployment Unemp. Rate
January 92,600 86,700 5,900 6.3%
February 93,600 87,800 5,800 6.2%
March 94,500 88,700 5,800 6.1%
April 93,900 88,600 5,300 5.7%
May 94,000 89,000 5,000 5.3%
June 93,100 87,000 6,100 6.5%
July 91,900 85,700 6,200 6.8%
August 93,800 87,900 5,900 6.3%
September 94,500 88,800 5,600 5.9%
October
November 94,500 89,000 5,500 5.9%
December 93,500 88,100 5,400 5.8%
2024 Labor Force Employment Unemployment Unemp. Rate
January 90,400 84,600 5,800 6.4%
February 92,000 85,900 6,000 6.6%
March 92,400 86,700 5,700 6.2%
April 91,700 86,700 5,000 5.5%
May 91,500 86,900 4,600 5.1%
June 90,200 84,800 5,500 6.1%
July 89,100 83,400 5,800 6.5%
August 91,400 85,700 5,700 6.3%
September 92,100 87,000 5,100 5.5%
October 92,700 87,500 5,100 5.5%
17 November 92,300 87,000 5,300 5.7%
December 92,000 86,700 5,200 5.7%
Annual Averages 91,500 86,100 5,400 5.9%
2023 Labor Force Employment Unemployment Unemp. Rate
January 90,400 85,300 5,100 5.7%
February 91,500 86,400 5,200 5.6%
March 91,600 86,500 5,100 5.6%
April 90,800 86,500 4,300 4.7%
May 91,100 86,900 4,200 4.6%
June 89,400 84,700 4,700 5.2%
July 88,200 83,600 4,600 5.2%
August 90,000 85,100 4,800 5.4%
September 91,600 87,100 4,500 4.9%
October 92,200 87,600 4,600 5.0%
November 91,600 87,100 4,600 5.0%
December 90,800 85,900 4,900 5.4%
Annual Averages 90,800 86,000 4,700 5.2%
18 Industry Projections
2020-2030 Industry Employment Projections
Chico Metropolitan Statistical Area
(Butte County)
NAICS Code[1] Industry Title
Base Year
Employment
Estimate 2020[2][3]
Projected Year
Employment
Estimate
Numeric
Change
Percentage
Change
2030 2020-2030 2020-2030
No data Total Employment 82,500 94,300 11,800 14.30%
No data Self Employment[4] 5,700 5,900 200 3.50%
No data
Private Household
Workers[5] 100 100 0 0%
111-1132,114-
115 Total Farm 2,900 3,200 300 10.30%
No data Total Nonfarm 73,800 85,100 11,300 15.30%
1133,21,23
Mining, Logging, and
Construction 4,200 4,700 500 11.90%
31-33 Manufacturing 4,000 4,500 500 12.50%
22,42-49
Trade, Transportation, and
Utilities 13,600 15,500 1,900 14.00%
42 Wholesale Trade 2,100 2,600 500 23.80%
44-45 Retail Trade 9,800 10,900 1,100 11.20%
22,48-49
Transportation,
Warehousing, and Utilities 1,700 2,000 300 17.60%
51 Information 600 800 200 33.30%
52-53 Financial Activities 3,000 3,200 200 6.70%
52 Finance and Insurance 1,700 1,900 200 11.80%
54-56
Professional and Business
Services 5,400 6,500 1,100 20.40%
61-62
Educational Services
(Private), Health Care, and
Social Assistance 17,500 21,400 3,900 22.30%
71-72 Leisure and Hospitality 7,200 9,100 1,900 26.40%
81 Other Services (excludes
814-Private Household
Workers) 3,100 3,400 300 9.70%
No data Government 15,300 16,000 700 4.60%
No data Federal Government 700 800 100 14.30%
No data State and Local Government 14,500 15,200 700 4.80% No data State Government 4,200 4,000 -200 -4.80%
No data State Government Education 3,100 3,200 100 3.20% No data Local Government 10,400 11,200 800 7.70%
No data
Local Government Excluding
Education 4,600 5,200 600 13.00%
19 Major Employers
Employer Name Location Industry
Butte Community Insurance Agcy Chico Insurance
Butte County Comm Employment Oroville Employment Agencies & Opportunities Butte County Sheriff Oroville Government Offices-County California State Univ Chico Chico
Schools-Universities & Colleges
Academic
Cascade Auto Glass Chico
Automobile Glass-Service &
Installation
Chico High School Chico Schools
Enloe Homecare Chico Hospices
Enloe Medical Ctr Chico Physical Therapists
Enloe Medical Ctr Chico Hospitals
Enloe Medical Ctr Chico-Vlntr Chico
Social Service & Welfare
Organizations
Firestorm Wildland Fire Chico Foresters-Consulting
Gold Country Casino Resort Oroville Casinos
Graphic Packaging Intl Oroville Paperboard Mills (mfrs) Knife River Construction Chico Construction Materials NEC (whls) Orchard Hospital Gridley Hospitals
Pacific Coast Producers Oroville Canning (mfrs)
Paradise Unified School Dist Paradise School Districts
S-S Organic Produce-Natrl Chico Fruits & Vegetables & Produce-Retail United Healthcare Chico Insurance
Walmart Chico Department Stores
Walmart Supercenter Oroville Department Stores
Wayfinder Family Svc Chico Family & Children Services
Wehah Farm Inc Richvale Rice Mills (mfrs)
Wil-Ker-Son Kiwi Ranch Gridley
Fruits & Vegetables-Growers &
Shippers
Work Training Ctr Chico Disability Services
20 Agricultural Characteristics
The climate and soil have historically made agriculture the economic base of Butte County.

Butte County produces large quantities of almonds, rice, oranges, olives, peaches, prunes, grains, and beans. Over 446,000 of Butte
County’s acreage is devoted to agriculture,
without including grazing land for livestock, and
greenhouse space for nursery stock. Almost any
edible plant or tree that can be grown in the
United States can be cultivated successfully in
Butte County. Dairy, beef cattle, sheep, and hogs
contribute considerably to the economy as well.

The estimated gross value of agricultural production in Butte County for 2024 totaled $589,065,628. This is a $15,212,326 increase over the 2023 gross value total of $573,853,302. Butte County’s 10-year average is $657,622,740.

The following chart on the next page compares the values for agricultural products in Butte County for 2020-2024:
21 22
The natural resources of the county, together with its pleasant residential environment, have stimulated some industrial development. Industrial development in Butte County has been affected by the overall poor condition of the California economy. Major products include lumber, light machinery, prefabricated homes, fabricated metal, stone and clay building materials, and processed foods.

Governmental and Political Characteristics
Butte County is one of 58 California counties and is governed by an elected board of supervisors. Major responsibilities of the county government include the County Sheriff's Department, Justice Courts, Public Health, and Public Works (including road maintenance). The major county agencies affecting real property are the Planning Office, the Planning Commission, the Assessor's Office, and the Building Department.

In California, real estate assessments and taxes changed dramatically in 1978, with the passage of Proposition 13. All counties within California are required to appraise all properties, except certain agricultural and timber properties, at full market value as they existed on March 1, 1978. A property created, developed, or sold after March 1, 1978 is appraised at full cash value as of the time created or sold, and may also be adjusted at up to 2% annually. By the passage of Proposition 13, the basic tax rate in California is $1 per $100 of appraised value, plus any taxes levied to cover bond indebtedness for county, city, school, or other taxing agencies. The County Assessor's Office is responsible for the appraisal of each property within the constraints of Proposition 13, and appraised values and tax rates are published annually after July 1st. Since the passage of Proposition 13 in 1978, the State of California has continued to pass unfunded mandates for the counties, which include such items as welfare payments, court costs, environmental regulations, and others.

A description of the immediate area of the subject property is as follows on the next page:
23 IMMEDIATE AREA MAP & IMMEDIATE AREA ANALYSIS
The subject property is located near the
southern portion of the city of Gridley, just west
of State Highway 99, within Butte County CA.

The subject sits along the northeast corner of
Cedar Street and Kentucky Street, noting that
the subject can be accessed along both of
these roadways. Both Cedar Street and
Kentucky Streets are two lane, asphalt paved,
and city-maintained roadways.

The immediate area of the subject property is
located just west of State Highway 99 and is
primarily industrial in nature. Gridley and Biggs are small residential communities composed primarily of older average quality, single family homes, commingled with primarily agricultural use and a small number of commercial/industrial uses. The subject property sits in a primarily industrial area, being south of the residential area of Gridley.

Overall, the surrounding neighborhood of the subject is primarily industrial in nature, noting that to the north lies most of the residential uses, and most other retail or commercial uses lie to the west, along State Highway 99.

The boundaries of the subject property are as follows: State Highway 99 approximately 0.35 miles to the east, Laurel Street 250 feet to the north, Kentucky Street to the west, and Cedar Street to the south.

The utilities which are available to the subject property include electrical power provided by Pacific Gas & Electric Company, Inc., telephone service provided by several providers, with water and sewer being provided by the city of Gridley.
24 MARKET TRENDS
The overall industrial market in the area of Gridley appears to be extremely slow, with very limited sales being available. From multiple MLS databases, as well as CoStar data, only five industrial sales were available within the five years prior to the valuation date in the city of Gridley. The author notes that considering the small population base in the city of Gridley, having less than 8,000 people, this lack of industrial sales is to be expected. From the limited sales available, the author notes that the range in value of the five sales was between $25.38 – $334.19/SF, also taking into consideration that the sale indicating a value of $334.19/SF included over 6 acres on land, and only 7,780 SF of building. The average sale price per square foot of building from the sales gathered is $107.02; excluding the outlier on over 6 acres, the average sale price per square foot of land falls to $50.22.

Commercial land sales in the area were also extremely limited, with only 3 commercial or industrial land sales being available in the city of Gridley over the last five years. These three sales indicate a range of $4.30 – $9.75/SF of land, with an average of $7.42/SF of land. Overall, the industrial market in the area of Gridley is extremely limited, however, it appears to have remained relatively stable from the few sales analyzed. The best and most reliable sales will be gathered and utilized in the sales comparison approach to value section of this report.

Industrial Sales
25 Land Sales
26 NATIONAL FLOOD INSURANCE PROGRAM
The subject property is located in Zone X of FEMA Map Number 06007C1125E, effective on 1/6/2011. Overall, flooding is not a risk for the subject property as of the valuation date. A copy of the subject’s flood map is as follows:

FEMA FLOOD MAP
27 ZONING AND GENERAL PLAN
The zoning and general plan of the subject property are Public & Quasi-Public and Public. A description of the zoning ordinance is as follows:

ARTICLE 8. Public Use District
Chapter 17.62

PQP P UBLIC AND QUASI -PUBLIC DISTRICT

17.62.010 Intent.

17.62.020 Permitted uses.

17.62.030 Conditional uses.

17.62.040 Maximum building height.

17.62.050 Maximum lot coverage.

17.62.060 Minimum yard requirements.

17.62.070 Minimum loading area.

17.62.080 Parking requirements.

17.62.090 Site development plan.

17.62.010 Intent.

The purpose of the PQP Public Quasi-public District is to provide sites in public or private ownership for use by public, private, or nonprofit uses of a community service nature. (Ord. 823-2016 § 23 (part), 2016)

17.62.020 Permitted uses.

The following uses are permitted in the PQP district:

A. Federal, State, County and City buildings and related structures (e.g. Government administrative offices, police, fire, public works, utility offices and yards, irrigation and water supply companies, and reclamation districts).

B. Medical hospital.

C. Parks and recreation areas, fairgrounds, civic center and similar sites and uses.

D. Educational facilities.

E. Transitional, Emergency shelters, and support housing providing housing for individuals or families without time limit for year round use.
(Ord. 823-2016 § 23 (part), 2016)
28 17.62.030 Conditional uses.

Conditional uses in the POP district are:

A. Ambulance Service.

B. Medical offices or medical clinic.
(Ord. 823-2016 § 23 (part), 2016)

17.62.040 Maximum building height.

No building shall exceed a height of forty-five (45) feet unless a use permit is first secured. (Ord. 823-2016 § 23 (part), 2016)

17.62.050 Maximum lot coverage.

A. The aggregate coverage of the lot by buildings and required parking area shall not exceed a total of sixty (60) percent of the total lot area.

B. Additional lot coverage shall be subject to the requirements of Chapter 17.09 for an increase from sixty (60) percent to ninety (90) percent. (Ord. 823-2016 § 23 (part), 2016)

17.62.060 Minimum yard requirements.

A. Front Yard. None, except where the frontage is partially in a residential district, in which case the front yard shall be the same as required in the residential district.

B. Side Yard. None, except where the side of a lot abuts a residential district, in which case the side yard shall be the same as required in the residential district.

C. Rear Yard. None, except where the rear yard of a lot abuts a residential district, in which case the rear yard shall be the same as required in the residential district. (Ord. 823-2016 § 23 (part), 2016)

17.62.070 Minimum loading area.

Private off-street parking space for the loading and handling of all goods, materials and equipment shall be provided. Such space shall be of sufficient dimensions and design as to permit loading and handling activities to take place without use of public streets or required parking areas. Areas intended for loading, unloading and movement of trucks shall be at least twelve feet wide and fourteen feet high.
(Ord. 823-2016 § 23 (part), 2016)
29 17.62.080 Parking requirements.

The general provisions of Chapter 17.76 shall apply.
(Ord. 823-2016 § 23 (part), 2016)

17.62.090 Site development plan.

All public and quasi-public development projects shall be subject to site development review in accordance with Chapter 17.07.
(Ord. 823-2016 § 23 (part), 2016)

CONFORMITY
As of the valuation date, the subject’s improvements conform to the existing zoning and general plan for the area.
30 TAXES
The subject property is identified by the Butte County Assessor’s Office as the following Assessor’s Parcel Number. The tax data for the 2025/2026 tax year is as follows:

Assessed Values
Assessor's Parcel
Number(s) Acres Land Improvements Personal Property Taxes Tax Rate Zoning General Plan 010-123-007 0.20 no tax info Public &
Quasi-Public Public
Total $0 $0 $0 $0
According to the Assessor’s Office Records, the total market value of the subject property is not available due to the entity owning the property. It should be noted that the Assessor’s Office values are not indicative of market value of the subject property. It is also noted that the Assessor’s Office Records are merely a factoring of the values, as they existed in 1978 when Proposition 13 was passed. Unless a recent sale has taken place, or the property has been transferred initiating a new appraisal report, these values are not normally indicative of market value in today’s real estate market. Therefore, they were not utilized in establishing a market value for the subject property.
31 SUBJECT PHOTOS
Interior of office
Interior of warehouse
Interior of warehouse from entrance
Loft area
Parking lot
32 Restroom
Roll up doors
Southeastern corner
Southern frontage looking east
Southern frontage looking west
33 Southern frontage of building
Truck bay along northern border
Truck loading area
Western frontage looking north
Western frontage looking south
34 ASSESSOR’S PLAT
35 AERIAL
36 PHYSICAL DESCRIPTION
Site Description
The subject’s site consists of a total of 0.20 acres of land contained in one legal parcel.

It is rectangular in shape and sits on the northeast corner of Cedar Street and Kentucky Street. There are approximately 110 feet of frontage along Cedar Street to the south, and 80 feet of frontage along Kentucky Street to the west. The topography of this site is level and is set approximately one foot above street grade. This site can be accessed near its southeastern corner along Cedar Street, and from its northwest corner along Kentucky Street. This property has been laid out for industrial/warehouse use with a truck bay along the northern border, and two roll up metal doors along the southern border. There are approximately 3,200 square feet of paved asphalt along the eastern frontage of the subject that contains parking for the facility; there is additional public parking located along both Cedar and Kentucky Streets. The subject is located on the southern end of the city of Gridley, with most of the area being used for commercial or industrial operations. This site has all public utilities available, such as water, sewer, and power.

Site Improvements
As of the valuation date, the subject property has one building developed upon its site.

This is a 3,840 square foot wood framed structure. It is set on a concrete slab foundation, with corrugated metal siding, and a dual peaked straight gable roof with corrugated metal coverings. This warehouse has one restroom with a single toilet and a sink along its northeastern corner, as well as a small, improved office area along the southeast corner. The warehouse area is unfinished, with exposed concrete flooring and exposed framing.

There is power to this structure, with some overhead lighting. There is one additional loft area that was used for additional storage. There are two metal roll up doors along the southern border of the subject, along with one man door along the eastern frontage, and one larger door and one-man door along the northern frontage, adjacent to the truck bay.
37 The office area measures 168 square feet and is finished with vinyl tile flooring and wood panel wall coverings. There is power and lighting to this area, as well as a wall mounted air conditioner.

The breakdown of this warehouse is shown on the sketch shown later in this report. The building was built on May 3rd, 1927, and overall is in fair to poor condition. The effective age of this building is estimated at 25 years as of the valuation date. 38 SKETCH
39 BREAKDOWN OF IMPROVEMENTS
40 STATEMENT OF OWNERSHIP
According to the deed provided by the current owner, the subject property has been owned by the County of Butte for many years. No sales or transfers of ownership have occurred within the past three years.

INCOME AND EXPENSE INFORMATION
As of the valuation date, the subject property had sat vacant for several years.

Therefore, no income and expense was made available to the author as of the valuation date. The author has gathered comparable rental rates as well as expenses for similar properties in the subject’s general area and competing markets. Using this data, the income information will be estimated in the Income Approach to value section of this report.

HIGHEST AND BEST USE
Highest and Best Use is identified as the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability.3
Legally Permissible As Vacant:

The subject property consists of one legal parcel that is zoned “Public and QuasiPublic”. This zoning permits a wide variety of commercial, industrial, retail, and some residential or medical uses in order to provide sites for community service.

Legally Permissible As Improved:

The subject property’s improvements are legally permissible uses as of the valuation date.
3 The Dictionary of Real Estate Appraisal, 12th Edition, Page 306 41 Physically Possible As Vacant:

The subject’s site is large enough to allow for most types of commercial, industrial, retail, and some residential or medical uses. However, considering the location of the subject, industrial or commercial uses are the most likely physically possible for the subject property.

Physically Possible As Improved:

The subject’s improvements limit the subject to industrial use, which is conforming and prevalent in the area. Therefore, from a physically possible as improved standpoint, the existing industrial site is the only physically possible use for the subject property’s site.

Feasible As Vacant:

The location and zoning allow for many types of commercial, industrial, retail, residential, and even some medical uses. Taking into consideration the surrounding neighborhood of the subject, some type of industrial use would be feasible for this property, as vacant.

Feasible As Improved:

As improved, the subject property has been vacant for several years; however, it can be owner operated or leased; as of the valuation date, considering the zoning and physical location, the existing industrial use, either by being leased or owner occupied is the only feasible use for the subject as improved.

Maximum Productive As Vacant:

The maximum productive usage of the subject property, as vacant, would be for light industrial use, taking into consideration its size and location features. 42 Maximum Productive As Improved:

The existing improvements currently utilize the subject’s site appropriately and can provide the land with some of the highest returns, if operated appropriately.

In conclusion, the four tests indicate that the current light industrial site use is consistent with its highest and best use as of the valuation date. 43 SALES COMPARISON APPROACH
The Sales Comparison Approach to value is the value that a typical purchaser would be willing to pay for a property, as of the valuation date, in order to determine what the subject property would sell for in today's real estate market. The direct Sales Comparison Approach to value is based on the principle of substitution, that is, a property is replaceable in its market. Its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no costly delay in making the substitution. This estimate involves the collection and analysis of sales of properties with characteristics similar to those on the property being appraised. The validity of this approach is very much dependent on the availability of this data and its relevancy and quality.

Analysis of the sales is based upon the following criteria:

A. Property rights conveyed.

B. Financing terms.

C. Conditions of sale.

D. Market conditions.

E. Location.

F. Physical characteristics.

G. Economic characteristics.

H. Non-realty components.

The assumption is that the sales are similar to the stated objectives of the report, the market value definitions, and the above-mentioned criteria, unless otherwise stated.

Note that in making any necessary adjustments, sales are always adjusted to the subject and not vice versa. The market was extensively researched for comparable sales. Following in this section are the best comparable sales that the author could find in the past few years. The units of comparison utilized in analyzing all of the sales would be the dollar per square foot of land for the open land valuation, along with the overall dollar per square foot for the improvements. See the following sales on the next pages:
44 PLAT - SALE NO.1
45 SALE NO. 1
EVANS APPRAISAL SERVICE, INC.

County: Butte Sale Number: 2020COM00158
Use: Commercial Vacant Lot Exposure Time: 1911 DOM
Location: E Gridley Rd, Gridley MLS: MLS#: 201402764
SALE DATA:

Grantor: CORLEY FAMILY TRUST
Grantee: MIDHA
Document: 2020-871 Recorded: 1/9/2020
APN: 024-260-093 Zoning: Com
Transfer Tax: $110.00 Full Value Indicated Equity: $100,000 Confirmed Price: $100,000 Confirmed By: QH
SP Adjustment: None noted. Confirmed With: Public Records/List Agent: Teri A Garcia -
530-370-0158 / Larry
Featherston - 530-518-
5635
Terms: Cash sale.
46 PROPERTY DATA:

Gross Ac: 0.42 Topography: Level
Buildings and Improvement
Description Comments Age Cond Size
(SF)
Class St Un
Description Size (SF) RCN Contrib RCN %
Totals Not Available Not Available Not Available
$/Sq.Ft (vacant land only) $5.47
$/Acre (Land only) $238,095.30
INCOME ANALYSIS:

Type of Operation: Vacant Land - Income and Expense Information not available Other Information: Commercial lot located on one of Gridley's main roads. Property would be great for a small retail shopping center, fast-food, full-service car wash, etc. Seller- trust saleBuyer- Doctor from Yuba city bought it and is building office with senior living. No amenities, no utilities at time of sale, all at street.

COMPANY INFORMATION:

Appraiser: Michael H. Evans, FASA, FRICS
Analysis: Considering the similar location and the date of sale and larger size of the lot and noting that the commercial market did not greatly increase since 2020 in the Gridley area, the land value indicated by this sale is considered to be inferior to the subject on the dollar per square foot of land unit of comparison basis. Note that this sale is located approximately half a mile east of the subject.
47 PLAT - SALE NO.2
48 SALE NO. 2
EVANS APPRAISAL SERVICE, INC.

County: Colusa Sale Number: 2021COM00242
Use: Industrial lot Exposure Time: 343 DOM
Location: 2949 Farinon Road, Colusa MLS: Co Star
SALE DATA:

Grantor: HULBERT BRADLEY J
Grantee: TANOAK INNOVATION LLC
Document: 2021- 3443 Recorded: 8/23/2021
APN: 017-130-006-000 Zoning: M1
Transfer Tax: $825.00 Full Value Indicated Equity: $750,000 Confirmed Price: $750,000 Confirmed By: Kellly
SP Adjustment: None noted. Confirmed With: Public Records/Bradley J Hulbert
Terms: Cash sale.
49 PROPERTY DATA:

Gross Ac: 5.00 Topography: Level
Buildings and Improvement
Description Comments Age Cond Size
(SF)
Class St Un
Description Size (SF) RCN Contrib RCN %
Totals Not Available Not Available Not Available
$/Sq.Ft (vacant land only) $3.44
$/Acre (Land only) $150,000.00
INCOME ANALYSIS:

Type of Operation: Vacant Land - Income and Expense Information not available Other Information: On 8/23/2021, the 5 acres of industrial land at 2949 Farinon Rd, Colusa, CA 95932 was sold for $750,000, or $150,000 per acre. The property is a corner lot with frontage on Farinon Rd and Niagara Ave and is zoned M1. The property was on the market for 11 months, with an initial asking price of $750,000. This was an owner/user transaction. This was the seller's downleg in a 1031 exchange. There was no 3rd party broker involved on the seller side of this transaction. The sale date, sale price, land size, owner/user sale type and 1031 exchange were verified with the seller. "Light industrial/Bought with intention for manufacturing use. Seller paid $150,000 about 2 years ago and resold for $750,000. He had bought the property from a private owner.

There was a bunch of dilapidated trailers/buildings, and site was overgrown with weeds. So him and his dad cleaned it up and developed the site with intention to use for manufacturing, but found another site and sold this lot.

COMPANY INFORMATION:

Appraiser: Michael H. Evans, FASA, FRICS
Analysis: Considering the superior location of this property, however, noting the vastly larger size of the site, the land value indicated by this sale is considered to be inferior to the subject on the dollar per square foot of land unit of comparison basis 50 PLAT - SALE NO.3
51 SALE NO. 3
EVANS APPRAISAL SERVICE, INC.

County: Colusa Sale Number: 2023COM00045
Use: Commercial lot Exposure Time: 240 DOM
Location: 1250 Market Street, Colusa MLS: ML#: 222045931 SALE DATA:

Grantor: CAMARENA ALFANSO G & LAURA J
Grantee: ARRIGHI ROBERT E/ARRIGHI PATRICIA A
Document: 2023- 279 Recorded: 2/9/2023
APN: 001-012-005-000 Zoning: Commercial
Transfer Tax: $71.50 Full Value Indicated Equity: $65,000 Confirmed Price: $65,000 Confirmed By: Kelly
SP Adjustment: None noted. Confirmed With: Public Records/Alicia Mendez 530-908-0433,
530-669-3481
Terms: Cash sale.
52 PROPERTY DATA:

Gross Ac: 0.16 Topography: Level
Buildings and Improvement
Description Comments Age Cond Size
(SF)
Class St Un
Description Size (SF) RCN Contrib RCN %
Totals Not Available Not Available Not Available
$/Sq.Ft (vacant land only) $9.33
$/Acre (Land only) $406,250.00
INCOME ANALYSIS:

Type of Operation: Vacant Land - Income and Expense Information not available Other Information: 0.16 acre commercial lot. Located in downtown Colusa, just 3 minutes from Colusa Casino, in downtown Colusa; seller-liquidating assets; might have had some financial difficulties – buyer: agent not sure of his plans; has all city services.

COMPANY INFORMATION:

Appraiser: Michael H. Evans, FASA, FRICS
Analysis: Considering the superior location of this property in the Colusa area, the land value indicated by this sale is considered to be superior to the subject on the dollar per square foot of land unit of comparison basis
53 PLAT - SALE NO.4
54 SALE NO. 4
EVANS APPRAISAL SERVICE, INC.

County: Butte Sale Number: 2024COM00051
Use: Commercial Exposure Time: Not Available
Location: 1464 State 99 Hwy, Gridley MLS: 6745491
SALE DATA:

Grantor: TAKHAR SARBJIT S
Grantee: CVP-GRIDDLEY DB LLC
Document: 2024- 14648 Recorded: 6/4/2024
APN: 024-260-096-000 Zoning: C2
Transfer Tax: $495.00 Full Value Indicated Equity: $450,000 Confirmed Price: $450,000 Confirmed By: James Hawkinson SP Adjustment: None noted. Confirmed With: Public Records/ Nicole Key (408) 422-398
Terms: Cash sale.
55 PROPERTY DATA:

Gross Ac: 1.06 Topography: Level
Buildings and Improvement
Description Comments Age Cond Size
(SF)
Class St Un
Description Size (SF) RCN Contrib RCN %
Totals Not Available Not Available Not Available
$/Sq.Ft (vacant land only) $9.75
$/Acre (Land only) $424,528.30
INCOME ANALYSIS:

Type of Operation: Vacant Land - Income and Expense Information not available Other Information: Site can support Commercial, Convenience Store, Drug Store, Fast Food, Mixed Use, Retail, Storefront Retail/Residential uses; Buyer - Dutch bros-Seller - no distress.

COMPANY INFORMATION:

Appraiser: Michael H. Evans, FASA, FRICS
Analysis: Considering the superior location of this property in the Gridley area, the land value indicated by this sale is considered to be superior to the subject on the dollar per square foot of land unit of comparison basis
56 SALES ANALYSIS
After analyzing the sales, the following was concluded:

Land Sales Chart
SALE# ADDRESS SALE
PRICE
SALE
DATE
ACRES $/ SF LAND
ONLY

COMMENTS
1 E Gridley
Rd
$100,000 1/9/2020 0.42 $5.47 Inferior
2 2949
Farinon
Road
$750,000 8/23/2021 5.00 $3.44 Inferior
3 1250 Market
Street
$65,000 2/9/2023 0.16 $9.33 Superior
4 1464 State
99 Hwy
$450,000 6/4/2024 1.06 $9.75 Superior
$/SF OF LAND – QUALITATIVE ANALYSIS
After analyzing the land sales summarized in the above land sales chart and taking into consideration the differences in date of sale, size, and location attributes, and noting that Sales One and Four, in Gridley, were the best available land sales, the value of the subject property’s land, some 0.20 acres, is bracketed between Sale One and Sale Three. The bracketing range is $5.47 to $9.33 per square foot of land. Again, noting the comparability of Sale One and Sale Four, which is slightly above bracketing Sale Three, equal weight is placed upon both ends of the bracketing range in arriving at a value of $7.50 per square foot of land for the subject property’s site. Therefore, the land value opinion of the subject property via the Sales Comparison Approach is as follows:

Sales Comparison Approach to Value – Land Only
8,712 square feet x $7.50 per square foot of land: $65,000 (Rounded) Please see the following limited industrial improved sales found in Gridley. 57 IMPROVED INDUSTRIAL SALES
PLAT - SALE NO.5
58 SALE NO.5
EVANS APPRAISAL SERVICE, INC.

County: Butte Sale Number: 2023COM00116
Use: Commercial Exposure Time: Not Available
Location: 1267 State Highway 99,
Gridley
MLS: 6403623/Co Star
SALE DATA:

Grantor: TOMLINSON MICHAEL & T TRUST
Grantee: KHAN MOHSAN Z
Document: 2023-9942 Recorded: 4/12/2023
APN: 021-270-017-000 Zoning: M2
Transfer Tax: Not Available Indicated Equity: Not Available Confirmed Price: $2,600,000 Confirmed By: James Hawkinson SP Adjustment: None noted. Confirmed With: Public Records/Co Star Terms: $1,800,000 / PRIVATE PARTY.
59 PROPERTY DATA:

Gross Ac: 7.10 L/B Ratio: 39.75 /1 Topography: Level
Buildings and Improvement
Description Comments Age Cond Size
(SF)
Class St Un
Industrial Building 7,780 square foot industrial
building
1970 Average 7,780 S 1 1
Description Size (SF) RCN Contrib RCN %
Industrial Building 7,780 Not Available Not Available Not Available Totals Not Available Not Available Not Available
$/Sq.Ft (land & building) $334.19
$/Sq.Ft (land only) $8.41
$/Acre (Land only) $366,197.20
INCOME ANALYSIS:

Type of Operation: Commercial
Potential Gross Income: Not Available Vacancy Rate: 0%
Effective Gross Income: Not Available Total Expenses: Not Available Net Op Income : Not Available Ro: Not Available
GIM: Not Available EGIM: Not Available
Other Information: On April 12, 2023, the 7,780 square foot industrial building on 6.2 acres, sold for $2,600,000 or approximately $334 per square foot. The buyer took out a loan of $1,800,000 to finance the acquisition. The property was built in 1970. The zoning on the property is M2 (zoned for heavy industrial. built as a truck yard. most recently used as a truck dismantling yard.). The sale was confirmed by the seller (or rep).

COMPANY INFORMATION:

Appraiser: Michael H. Evans, FASA, FRICS
Analysis: Considering the superior condition and dynamics and location of this property in the Gridley area, the overall value indicated by this sale is considered to be superior to the subject on the dollar per square foot of land and building unit of comparison basis.
60 PLAT - SALE NO.6
61 SALE NO.6
EVANS APPRAISAL SERVICE, INC.

County: Butte Sale Number: 2023COM00115
Use: Commercial Exposure Time: 4 Months 27 Days
Location: 195 Washington St, Gridley MLS: 6110635/Co Star SALE DATA:

Grantor: MILLER MARK A & ANDREA L
Grantee: TCC PROPERTIES LLC
Document: 2023- 27451 Recorded: 10/11/2023
APN: 010-200-055-000 Zoning: Not Available
Transfer Tax: $363.00 Full Value Indicated Equity: $330,000 Confirmed Price: $330,000 Confirmed By: James Hawkinson SP Adjustment: None noted. Confirmed With: Public Records/Listing agent - John Ochipinti -
(530) 301-4422, Adam
Daigler - (310) 293-5302
Terms: Cash sale.
62 PROPERTY DATA:

Gross Ac: 0.79 L/B Ratio: 2.87 /1 Topography: Level
Buildings and Improvement
Description Comments Age Cond Size
(SF)
Class St Un
Industrial building 12,000 warehouse; 45 x 30
covered storage; warehouse was
really old and in poor condition
but useable-Office; 700 SF -
useable not in good shape
unk Poor 12,000 S 1 1
Description Size (SF) RCN Contrib RCN %
Industrial building 12,000 $500,000 $150,000 30.00%
Totals $500,000 $150,000 30.00%
$/Sq.Ft (building only) $12.50
$/Sq.Ft (land & building) $27.50
$/Sq.Ft (land only) $5.23
$/Acre (Land only) $227,848.10
INCOME ANALYSIS:

COMPANY INFORMATION:

Appraiser: Michael H. Evans, FASA, FRICS
Analysis: Considering the larger size of the building and the similar condition, the overall value indicated by this sale is considered to be slightly inferior to the subject on the dollar per square foot of land and building unit of comparison basis. Note that this sale is located 185 yards east of the subject.
63 PLAT - SALE NO.7
64 SALE NO.7
EVANS APPRAISAL SERVICE, INC.

County: Butte Sale Number: 2025COM00023
Use: Industrial Exposure Time: 5 DOM
Location: 82 W Liberty Rd, Gridley MLS: SN25000748
SALE DATA:

Grantor: SHADD MICHAEL A
Grantee: COUNTY OF BUTTE
Document: 2025-16197 Recorded: 6/17/2025
APN: 021-270-033-000 Zoning: M2
Transfer Tax: Not Available Full Value Indicated Equity: Not Available Confirmed Price: $799,000 Confirmed By: James Hawkinson SP Adjustment: None noted. Confirmed With: Public Records/Listing agent - Nikos Krohn -
530-870-2466
Terms: Cash sale.
65 PROPERTY DATA:

Gross Ac: 1.09 L/B Ratio: 11.87 /1 Topography: Level
Buildings and Improvement
Description Comments Age Cond Size
(SF)
Class St Un
Industrial 2 offices 2 bathrooms, offices
were decent, had been using for
a while. 20 x 30sf for each office,
stacked on top of each other.
1981 Fair 4,000 S 1 1
Description Size (SF) RCN Contrib RCN %
Industrial 4,000 $350,000 $190,000 54.29%
Totals $350,000 $190,000 54.29%
$/Sq.Ft (building only) $47.50
$/Sq.Ft (land & building) $199.75
$/Sq.Ft (land only) $12.83
$/Acre (Land only) $558,715.60
INCOME ANALYSIS:

Type of Operation: Industrial
Potential Gross Income: Not Available Vacancy Rate: 0%
Effective Gross Income: Not Available Total Expenses: Not Available Net Op Income : Not Available Ro: Not Available
GIM: Not Available EGIM: Not Available
Other Information: 82 W Liberty Rd, a 1.09-acre industrial property located just a minute from Highway 99 and an hour from Sacramento. Property Features: 4,000 sq ft shop, built for the demands of a trucking business. Two office spaces, two restrooms, and a flexible break room/parts room. A spacious, organized yard, capable of supporting a fleet of 10-20 semi-trucks. Full surveillance system provides added security. The location is ideal for logistics, with easy access to major routes, enabling state-line operations, including daily trucking to Nevada by the previous company. Buyer - Butte County purchased, sold for slight premium because of that. Seller - no distress, wanted a fair price

66 COMPANY INFORMATION:

Appraiser: Michael H. Evans, FASA, FRICS
Analysis: Considering the superior condition and dynamics and location of this property in the Gridley area, and the premium paid, the overall value indicated by this sale is considered to be superior to the subject on the dollar per square foot of land and building unit of comparison basis.
- 67 -

SALES SUMMARY
Improved Industrial Sales Chart
SALE# ADDRESS SALE
PRICE
SALE
DATE

ACRES BUILDINGSQFT
(Total)
$/ SF
LAND &
BLDG
CAP
RATE

COMMENTS
5 1267 State
Highway 99
$2,600,000 4/12/2023 7.10 7,780 $334.19 NA Superior
6 195
Washington
St
$330,000 10/11/2023 0.79 12,000 $27.50 NA Inferior
7 82 W Liberty
Rd
$799,000 6/17/2025 1.09 4,000 $199.75 NA Superior
In analyzing the subject property as improved, it should be noted that the author took into consideration the current and historical market conditions in the Gridley area and noted the limitation of the sales. In looking at the three sales analyzed, Sale Six is the most comparable to the subject from a condition and location standpoint and was deemed slightly inferior being vastly larger in the size of its building, having however a larger size lot. The balance of the sales was deemed superior mainly due to the condition differences, coupled by the superior location. Nevertheless, these were the best sales the author could confirm in the Gridley area.

As of the valuation date, the value of the subject property is bracketed between comparables six and seven, which indicate a range of values of $27.50 to $199.75 per square foot overall, with most weight being given to the lower end of the range, as sale number six was the best to compare to the subject. Therefore, relying on this bracketing range, a value of $30.00 per square foot is considered to be appropriate for the subject property. This indicates the following total value for the subject property:

Total Sales Comparison Approach to Value
3,840 square feet x $30.00 per square foot = $115,200
Rounded to $115,000
- 68 -

COST APPROACH
The Cost Approach to value estimates the replacement cost new of the improvements and deducts the appropriate depreciation to arrive at the present value of the improvements. The land value is then added to the depreciated value of the improvements for a total value from the Cost Approach to value.

In analyzing the subject property's improvements, the author relied on his own experience in the building cost industry, as well as relying on the guidelines set forth by the Marshall Swift Cost Handbook, a nationally recognized firm with over 50 years of experience in the building cost industry in developing the Comparative Unit Method.

In estimating the depreciation, it is noted that there are three forms of depreciation. They are physical deterioration, functional obsolescence, and external obsolescence. A description of all three forms of depreciation follows:

Physical deterioration is a form of depreciation and is the loss in value resulting from wear and tear in operation and exposure to the elements.

Functional obsolescence is a loss in value caused by factors inherent within a building or building equipment unit, such as changes in construction materials and techniques, which result in excess capital costs in existing facilities, lack of full use of space, and inability to expand or update the property.

External obsolescence is an incurable loss in value caused by negative influences outside the property itself, such as general economic conditions, availability of financing, or inharmonious property uses.

It is noted that the subject property suffers from physical depreciation as of the valuation date. - 69 -
To estimate the physical depreciation, the author utilized the effective Age-Life method. This method uses the typical life expectancy of an improvement and the effective age of said improvement to estimate the amount of depreciation present.

The results are summarized as follows:

COST APPROACH TO VALUE
Buildings Sq. Ft. $/Sq. Ft. Cost New
Eff.

Age
Life
span Depreciation
Depreciated
Value
Warehouse 3,840 $44.10 $169,349 25 35 $120,964 $48,386
Asphalt 3,200 $3.40 $10,883 10 15 $7,255 $3,628
Total Buildings $180,232 $128,219 $52,013
COST APPROACH - BUILDINGS ROUNDED TO $52,000
ADD LAND VALUE $65,000
COST APPROACH TO VALUE $117,000
COST APPROACH TO VALUE: $117,000
- 70 -

INCOME APPROACH TO VALUE
The Income Approach to value is that value which a typical purchaser would be willing to pay for a property based upon its income producing capability.

As of the valuation date, the subject has been vacant for several years according to the owner.

The author notes that rental rates for industrial properties in the area were extremely limited.

In order to establish a market rate for the subject property, the following leased industrial properties in the subject’s general competing areas were researched and they are reported as follows:

DATE SIGNED ADDRESS SF LEASED TERM RENT/SF/MONTH LEASE TYPE BUILDING TYPE Apr 2024 1950 Kitrick Ave 1,300 Not Available $0.77 Modified Gross Industrial Feb 2024 2560 Feather River 3,000 1 Year $1.00 Not Available Industrial Apr 2023 1950 Kitrick Ave 14,788 Not Available $0.50 Industrial Gross Industrial May 2025 1450 Oro Dam Blvd E 1,750 6 Years $0.15 Single Net Industrial Mar 2025 2775 Feather River Blvd 2,750 3 Years $0.70 Full Service Industrial Feb 2025 99 Kentucky Street 100,800 6 Months $0.50 Triple Net Industrial The leased comparables indicated a range of $0.15 to $1.00/SF per month, noting that the average rate indicated is $0.60/SF per month. Noting the condition of the building, a rental rate of $.50/SF per month is considered to be reasonable on modified gross basis. Once the gross income is established, a rent loss and vacancy factor is deducted. This loss is caused by tenant turnover or lack of payment by the tenants and/or vacant units.

Due to the location, size and the nature of the subject property, a vacancy and rent loss factor of 10.00% was estimated and considered to be appropriate in developing the Income Approach of the subject. Deducting the rent loss and vacancy from the property indicates an effective gross income. From the effective gross income are deducted the expenses that a typical landlord would incur. Since a modified gross type of lease arrangement was considered to be economic for the subject, the expenses that will be accounted for consist of real estate taxes, insurance, management, and maintenance fees. Note that taxes will be estimated by loading the tax rate into an appropriate capitalization rate. Deducting these expenses from the effective gross income indicates a net operating income. - 71 -
The final step needed in developing the Income Approach to value of the subject would be to establish an overall rate of return for its property. Due to the limited nature of the sales in the immediate area of the subject, no market sales in the area of Gridley indicated a capitalization rate. In order to establish a market capitalization rate, sales within 35 miles of the subject have been selected. From these sales, six industrial properties indicated capitalization rates ranging from 6.75% - 9.00%, which coincides with a considerable amount of leased commercial/industrial sales kept in the author’s files.

See the chart below indicating the above-mentioned capitalization rates.

ADDRESS PROPERTY TYPE SIZE SALE PRICE SALE DATE CAP RATE 2725 - 2735 State Highway 32 Industrial 18,320 $1,252,500 10/14/2025 7.78% 1450 Oro Damn Blvd E Industrial 13,825 $1,500,000 6/6/2025 8.47% 2860 Fair St Industrial 111,388 $13,156,000 11/20/2024 6.75% 282 Convair Ave Industrial 22,320 $3,293,000 9/29/2023 8.13% 2881 West Niagra Industrial 11,200 $950,000 8/22/2023 9.00% 3960 Morrow Ln Industrial 50,340 Not Available 7.75%
As of the valuation date, considering the size, location and condition of the subject, which has been vacant for a long period of time, as well as the current market conditions, a capitalization rate of 9.00% is considered appropriate for the subject property. The Income Approach to value of the subject property is as follows on the next page:
- 72 -
Income Approach to Value
Building Sq. Ft. Rent/Sq. Ft. Rate/Month Total
Warehouse 3,840 $0.50 $1,920.00 $23,040.00
Total 3,840 $23,040.00
Less Rent Loss & Vacancy Factory 10.00% $2,304
Effective Gross Income: $20,736
Less Expenses
Taxes:

Insurance: $3,000
Maintenance: 10.00% $2,074
Management: 8.00% $1,659
Total Expenses Before Taxes: $6,732
Net Operating Income Before Taxes: $14,004
Tax Rate 1.0769%
Capitalization Rate 9.00%
Loaded Rate 10.08%
Indicated value from the Income Approach $138,967
Rounded To $139,000
INCOME APPROACH TO VALUE.................................................$139,000 - 73 -

RECONCILIATION OF VALUES
The values, as indicated by the three approaches to value, are as follows:

SALES COMPARISON APPROACH $115,000
COST APPROACH $117,000
INCOME APPROACH $139,000
The Sales Comparison Approach to Value is typically a good indicator of value when one has numerous sales of similar types of properties. The author used the best comparable sales that he could find in the surrounding area. Overall, this approach seems to reflect a direct range of values for properties of the subject’s type, and therefore, some weight is placed upon it in arriving at a market value for the subject property.

The Cost Approach to Value is typically a good indicator of value when one has a newer building with accurate estimates of construction costs, land values, estimates of depreciation, and a strong market. There also needs to be a purchaser willing to pay replacement costs less depreciation for the improvements on the property. The subject property does not fit this category due to the older age of the buildings. Overall, little to no weight is placed on this approach to value.

The Income Approach to Value is typically a good indicator of value on an income producing property, which is bought on a rate of return a typical investor would be willing to accept. The subject property’s income was estimated based on market rates and overall, this approach appears to be reasonable; therefore, some weight is placed upon this approach to value in the valuation process.

Therefore, after analyzing all three approaches to value, and placing equal weight on the Sales Comparison and Income Approaches to value, the author’s opinion of the As Is Market Value for the subject property is concluded as follows:

AS IS MARKET VALUE:…………....……..…………...$125,000
- 74 -

CERTIFICATION OF REPORT
The appraiser hereby certifies:

The statements of fact contained in this report are true and correct.

The reported analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analysis, opinions, and conclusions.

I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved.

My compensation is not contingent on an action or event resulting from the analysis, opinions, conclusions in, or the use of this report.

My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.

That this appraisal assignment is not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Royal Institution of Chartered Surveyors and the American Society of Appraisers.

The use of this report is subject to the requirements of the Royal Institution of Chartered Surveyors and the American Society of Appraisers of Real Estate Appraisers relating to review by its duly authorized representatives. I have made a personal inspection of the property that is the subject of this report.

I have performed no 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.
75 Evans Appraisal Service, Inc.

Michael H. Evans, FASA / FRICS

Page 2 ends

Significant professional assistance was provided by Quinn Hawkinson. He assisted in inspecting the subject property, collecting and analyzing comparable sales, researching, analyzing and reviewing the subject and sales data provided. He used all appraisal methods customarily used for a particular property type and assisted in the evaluation process of the comparables and the opinion of value for the subject.

Michael H. Evans has successfully completed the requirements set forth by the State of California for licensing and certification and has been awarded the Certified General Real Estate Appraiser Certificate No. AG002019.

That in his opinion, the As Is Market Value of the subject property, as of the valuation date of February 3rd, 2026, is as follows:

AS IS MARKET VALUE:…………....……..…………...$125,000
Respectfully submitted,
____________________________
Michael H. Evans, FASA, FRICS
California State Certified General
Real Estate Appraiser #AG002019
Recertified until October 28, 2026
76 SALES SUMMARY
Land Sales Chart
SALE# ADDRESS SALE
PRICE
SALE
DATE
ACRES $/ SF LAND
ONLY

ACRES BUILDINGSQFT
(Total)
$/ SF
LAND &
BLDG
CAP
RATE

REFERENCES
1) American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, 3rd Edition, (Chicago 1993) page 140 and 171. 2) 1987 National Survey of Buying Power of Metropolitan Areas, Sales and Marketing Magazine, pages B-29.
3) The Appraisal of Real Estate, 12th Edition, page 336 4) Uniform Standards of Professional Appraisal Practice (USPAP), 2024 Edition REFERENCES/PHOTOS:
5) YCPD.ORG
6) CITY-DATA.COM
7) GREATSCHOOLS.NET
8) SYIX.COM
9) DOF.CA.GOV
10) WEBSHOTS.COM
11) REFERENCES/PHOTOS:
12) CALMIS.CA.GOV
13) DOF.CA.GOV
14) ADUNNPHOTOGRAPHY.OM
15) BOE.CA.GOV
16) GREATSCHOOLS.NET
17) CITY-DATA.COM
18) WEBSHOTS.COM
85 LEGAL DESCRIPTION AND DEED
86 RESOLUTION ACCEPTING DEED
87 ENGAGEMENT LETTER
88 89
90 91
92 93
94 95
96 97
98 99
100
Public Works Yard
860 Cedar Street, Gridley
APN 010-123-007

County
Public Works
Yard
City
Public Works
Facilities
City Council Agenda Item #2
Staff Report
Date: August 17, 2026
To: Mayor and City Council
From: Todd W. Farr, Chief of Police
Subject: Authorization to Conduct Police Department Commemorative Pink Patch Fundraiser Benefiting Orchard Hospital’s Breast Cancer Screening/Mammography Program.

Recommendation
Staff respectfully requests the City Council to authorize the Gridley Police Department to conduct a commemorative pink police patch fundraiser and authorize the donation of all net proceeds to Orchard Hospital’s Breast Cancer Screening/Mammography Program in support of community healthcare initiatives.

Background
The Gridley Police Department has historically sought opportunities to strengthen relationships with the community. Commemorative pink police patches have become a popular way for law enforcement agencies throughout California and the nation to engage with community members, collectors, and supporters while raising funds for charitable organizations.

The Police Department previously purchased commemorative patches using City funds for official department use and community outreach. The Department now proposes selling a portion of these patches as part of a charitable fundraising effort, with all net proceeds donated directly to Orchard Hospital.

Orchard Hospital provides essential healthcare services to the residents of Gridley and the surrounding communities. Supporting the hospital through this fundraiser aligns with the City’s commitment to promoting public health, safety, and community partnerships.

Discussion
The proposed fundraiser would consist of selling commemorative Gridley Police Department patches to members of the public, law enforcement collectors, and community supporters. The patches would be sold at community events, through approved Department outreach efforts, and by other methods approved by the City.

The fundraiser is intended solely as a charitable event and is not designed to generate revenue for the Police Department or the City. Following completion of the fundraiser, all proceeds, less X Regular
Special
Closed
Emergency
any authorized costs directly associated with the fundraiser, would be donated to Orchard Hospital.

Because the commemorative patches were originally purchased using City funds, City Council authorization is appropriate to approve the sale of City-owned property for charitable purposes and to authorize the subsequent donation of the proceeds. Council approval provides transparency, establishes clear authority for the transaction, and ensures appropriate accounting and documentation of all revenues and expenditures.

Fiscal Impact – None
Compliance with City Council Strategic Plan or Budget Goals This recommendation is consistent with our ongoing effort to be responsive and transparent regarding all business transactions and financial matters, as well as its ongoing efforts to support the community in such ominous financial times.

City Council Agenda Item #3
Staff Report
Date: August 17, 2026
To: Mayor and City Council
From: Christopher Smith, Planning Department
Subject: Tentative Parcel Map 1-26 Woodruff
Recommendation
Staff recommends that City Council approve the proposed map for 800, 804, and 820 Spruce Street, subject to the Conditions of Approval contained in Exhibit A, and finding the project Categorically Exempt from CEQA pursuant to Section 15315 (Class 15 – Minor Land Divisions).

Summary
The applicant, Dennis Woodruff and Carole King, requests approval of a Tentative Parcel Map to subdivide one parcel measuring approximately 0.21 acres (8,800 square feet) into two parcels.

Parcel 1 (0.05 acres) contains one existing office at 800 Spruce Street. Parcel 2 (0.15 acres) contains two existing dwellings located at 804 and 820 Spruce Street. The property is located within the C-1 (Restricted Commercial) zone with the DMU (Downtown Mixed Use Overlay).

Discussion
The project location is the north-western corner of Spruce and Virginia Streets on the northern edge of Gridley’s downtown area. The site is fully developed with two single family dwellings, and a commercial building that was most recently used as a dentist’s office. To the north is the X Regular
Special
Closed
Emergency

Page 2 of 4 ends

Butte Water District; across Virginia Street, to the east, is a single-family residence; Spruce Street abuts its southern border, followed by a vacant parcel; and opposite the alley, on the west side, is a single-family residence. The current parcel configuration is legally nonconforming with the City’s General Plan land use designation and zoning requirements, as are many parcels with this age of development. The site was developed before the current zoning was implemented. However, this parcel map doesn’t change the layout, use or impact of the structures.

All public services, including water, sewer, and roadway access, are available to both resulting parcels. No physical development or new construction is proposed as part of this subdivision.

The gas meter for dwelling 804 Spruce will be relocated from the commercial building to the dwelling itself, keeping access on the resulting parcel. There is a shared sewer line after the pipes merge roughly 35’ from the main in the alley. This will require an agreement, likely in the form of a deed restriction or maintenance agreement, to obligate both property owners’ equal financial responsibility for the infrastructure up to the sewer main.

Page 3 of 4 ends

The proposed parcel configuration would result in parcel 1 consistent with the City’s General Plan land use designation and zoning requirements, while parcel 2 will remain legally nonconforming. Under the current municipal code, residential uses in C-1 zoning require a conditional use permit.

Page 4 of 4 ends

Compliance with City Council Strategic Plan or Budget Goals Based on the analysis provided, staff finds that the proposed parcel map is more conforming with the Gridley General Plan and the Zoning Ordinance than it is currently, and is consistent with the requirements of the Subdivision Map Act. In addition, it will not be detrimental to public health, safety, or welfare.

Environmental Review
The project is Categorically Exempt from CEQA pursuant to Section 15315 (Class 15 – Minor Land Divisions).

Attachments –
• Exhibit A – Conditions of Approval
• Exhibit B – Tentative Parcel Map
• Exhibit C – Resolution 2026-R-030
RESOLUTION NO. 2026-R-030

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRIDLEY APPROVING TENTATIVE PARCEL MAP NO. 1-26 (APN 009-122-004) FOR THE DIVISION OF ONE PARCEL INTO TWO (2) PARCELS LOCATED AT 800, 804, AND 820 SPRUCE STREET.

WHEREAS, Dennis J. Woodruff (“Applicant/Owner”) submitted Tentative Parcel Map No. 1-26; and
WHEREAS, the City Council held a duly noticed public hearing on August 17, 2026; and
WHEREAS, notice was provided in the time, form, and manner required by law; and
WHEREAS, the City Council has reviewed the staff report, testimony, and the entire administrative record; and
WHEREAS, the project is consistent with the Downtown Mixed Use General Plan designation and C-1 Restricted Commercial zoning with Downtown Mixed Use Overlay;

CEQA FINDING
The City Council finds that this project is Categorically Exempt from CEQA pursuant to Section 15315 (Class 15 – Minor Land Divisions).

SUBDIVISION MAP ACT FINDINGS (Gov. Code §66474)
The City Council hereby makes the following findings:

A. The Tentative Parcel Map is consistent with the City of Gridley General Plan and applicable zoning regulations (§66474(a)).

B. The site is physically suitable for the proposed type and density of development (§66474(b)).

C. The design of the subdivision will not cause substantial environmental damage or substantially and avoidably injure fish or wildlife (§66474(e)).

D. The design of the subdivision will not cause serious public health problems (§66474(f)).

E. The subdivision will not conflict with existing public easements or rights-ofway (§66474(g)).

RESOLUTION NO. 2026-R-030
F. The Tentative Parcel Map complies with Title 16 of the Gridley Municipal Code and the Subdivision Map Act.

NO VESTING RIGHTS
The approval of this Tentative Parcel Map does not grant vested rights for future development. Any subsequent development shall require separate review and approval under applicable City regulations.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gridley as follows:

1. The above recitals and findings are true and correct.

2. Tentative Parcel Map No. 1-26 is hereby approved by City Council, subject to the Conditions of Approval attached hereto as Exhibit A.

3. This decision may be appealed in accordance with the Gridley Municipal Code.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: APPROVE:
____________________________ ________________________________ Elisa Arteaga, City Clerk Michael W. Farr, Mayor
RESOLUTION NO. 2026-R-030

EXHIBIT A

1. Scope. This approval is limited to the division of APN 009-122-004 into two (2) parcels.

2. Compliance. Applicant shall comply with all applicable provisions of the Subdivision Map Act and Title 16 of the Gridley Municipal Code.

3. Recordation. A parcel map consistent with this approval shall be recorded with the Butte County Recorder prior to issuance of building permits.

4. Expiration. This approval shall expire twenty-four (24) months from the date of approval unless extended pursuant to GMC §16.18.010.

5. Future Development. No public improvements are required with this approval.

Future development requires separate entitlements and permits.

6. Fees. Applicant shall pay all applicable City and County fees and recording costs.

7. Utility Meters and Shared Infrastructure. Each parcel shall be provided with independent water and electrical meters located on the parcel served. Any shared underground utility infrastructure shall be governed by a recorded agreement, in a form approved by the City Engineer and City Attorney, ensuring perpetual maintenance access and responsibility among affected parcel owners.

8. Indemnification. Applicant shall defend, indemnify, and hold harmless the City of Gridley from any claims arising out of this approval.

Gridley City CouncilAugust 17, 2026

Gridley City Council
August 17, 2026