Monterey County Ranch Johnson Canyon Road Gonzales, CA Acres

Monterey County Ranch 31701 Johnson Canyon Road Gonzales, CA 523.15 Acres

Introduction Located in California s Central Coast in the heart of the Salinas Valley lies the Gallo family s Monterey County Ranch. This property with its rich history is located Northeast of the City of Gonzales, poised just beneath the beautiful Gavilan mountain range. This property represents a unique agricultural opportunity in one of the most beautiful areas of California. The region itself has received state, national, and international attention for all areas of crop production that flourish in the rich soil and mild climate found here. 2

Index Introduction 2 Property Summary.... 4 Regional Map... 5 Maps and other Information.. 6-16 Ponds and Location 17-18 Local Owners....19 Water Information..20-30 Soil Information.. 31-41 General Facts.42-43 3

Property Summary Physical address: 31701 Johnson Canyon Road, Gonzales, CA A.P.N.: 223-041-025, 223-041-039,223-041-040, 223-041-041, 223-041-042, 223-071-003, 223-071-006, 223-071-007, 223-071-008, 223-071-012, 223-071-014, 223-071-015, 223-071-016 Acreage: 523.15 as surveyed Zoning: F-40 designation, County of Monterey Farm Land: The property located in one of the most prime vegetable and grape growing areas of North America and is currently being cultivated. Water: The property is serviced by 2 deep agricultural wells that produce approximately 600 GPM (combined). The property is also serviced by 1 domestic well located along Johnson Canyon Road. Storage Capacity: This ranch utilizes a system of ponds and basins with a storage capacity over 100 acre feet of water. The ponds can capture and hold rain & well water for the growing season. Drainage: All storm drainage and irrigation runoff for this property are captured and reused on site. The lift pump at the low side of the ranch can recirculate water back to the top allowing for the efficient reuse of water. Soils: Gloria Series and Placentia Series (See Page 32) Structural improvements: The property has multiple structural improvements including a farm shop, warehouse, and employee housing. Utilities: The property is serviced by the local electrical energy provider (PG&E) with multiple meter drops capable of high power demands. Additionally, a natural gas line exists adjacent to the property within Johnson Canyon Road. 4

Regional Map Monterey AVA This property is located within the Monterey AVA region which is an American Viticultural area located in Eastern Monterey County, California. It was established in 1984. It is part of the larger Central Coast AVA. It runs roughly 100 miles from its northern point, North of Monterey Bay to its southern point, Abutting Paso Robles, California. Approximately 46,000 acres of wine grapes are currently cultivated in the Monterey AVA and that number is growing every year!. JOSEPH GALLO FARMS MONTEREY COUNTY RANCH The Monterey AVA includes parts of the Carmel Valley and Salinas Valley including the Gonzales area. The northern portion is a cool growing region, but one with a very long growing season. Daytime temperatures rarely exceed 75 degrees fahrenheit. Over 50% of the grapes grown in the Monterey AVA are chardonnay. In the northern area, riesling and pinot are very popular and are known to be some of the finest in the world. In the southern portion of the region bordeaux varietal are most often grown. 5 5

AVA Districts American Viticultural Areas, or AVAs, are federallyrecognized growing regions that reflect the geographic pedigree of wine grapes and wines. These designations attribute given qualities, reputation, or other characteristics to a wine made from grapes grown in that area. Monterey County boasts nine AVAs that have been identified as one-of-a-kind winegrowing districts. Over 98% of Monterey s vineyards are in the Salinas Valley, mostly on the benchlands and foothills. The Monterey AVA is the largest appellation in Monterey County, and encompasses a broad range of Viticultural microclimates influenced by the vineyards proximity to the Monterey Bay. Typically rainfall averages 12-13 inches annually. Other contributing factors include reliable afternoon breezes, which alleviate disease pressure on the vines, and coastal fog that occurs within a narrow temperature range preventing the environment from getting too hot. 6

Wineries The Monterey wine industry has flourished in the last fifty years, growing from low-margin commodity products to higher-margin differentiated, branded products. In the last 20 years, tasting rooms have significantly contributed to this economic expansion. These attractions bridge Monterey County s main economic drivers agriculture and tourism. Ag Tourism In 1995, there were just five tasting rooms in the county. Today, there are 65 tasting rooms in Monterey County with several more scheduled to open in the summer of 2017. In 2013, Wine Enthusiast named Monterey County one of Best Wine Travel Destinations of the Year. The region welcomes over 400,000 visitors per year, bringing a total of $35 million in annual tourism dollars and contributing to over $100 million in statewide charitable donations. 7

Wine Grape Varieties In Monterey County 8

Monterey County Top Crops 9

Property Details APNs and 10

Property Details 11

Property Details Diesel Lift Pump #3 Ag Well #1 North Equipment Storage Warehouse Lift Pump #4 Ag Well #2 Farm Shop South Equipment Storage Employee Housing Domestic Well #5 12

Ag Pump Information Pump Type Power Horsepower PGE Meter GPM Year Rebuilt Pump Use #1 Well - Sub Electric 25 1009444342 138 Supply Water - Irrigation #2 Well Electric 75 1009442832 460 9/30/15 Main Irrigation well #2A Booster Electric 30 1009442832 Runs with well #2 to boost water up to the top ponds #3 Lift Diesel 125 Push pond water from pond 1 to elevated ponds #4 Lift Electric 30 1006907499 398 Lift water from upper ponds to wheel line irrigation system #5 Domestic Electric 1.5 5 1/12/18 Supply domestic water See page for more information 13

Structure Information Structure Name PGE Power Square Feet Warehouse Yes 34000 Farm Shop Yes 11500 North Equipment Storage Yes 19000 South Equipment Storage Yes 9500 Employee Housing Yes 1200 14

Property Details with 440 Farmable Acres 15

Property Details PGE Power 16

Property Details 17

Pond Capacities 101.52 Acre Feet Pond 1 288,032 cu. ft. / 2,154,629 gallons / 6.61 acrefeet Pond 2 479,457 cu. ft. / 3,586,587 gallons / 11.01 acre-feet Pond 3 576,957 cu. ft. / 4,315,938 gallons / 13.25 acre-feet Pond 4 554,857 cu. ft. / 4,150,619 gallons / 12.74 acre-feet Pond 5 317,607 cu. ft. / 2,375,865 gallons / 7.29 acrefeet Pond 6 216,337 cu. ft./ 1,618,313 gallons / 4.96 acre-feet Pond 7 420,011 cu. ft. / 3,141,900 gallons / 9.64 acrefeet Pond 8 Freshwater Ag Well Supplied 404,057 cu. ft./ 3,022,566 gallons /9.27 acre-feet Pond 9 705,657 cu. ft./ 5,278,681 gallons /16.2 acre-feet Pond 10 459,697 cu. ft./ 3,438,772 gallons / 10.55 acrefeet 18

JACKSON FAMILY ESTATES Local Owners AMERESCO JOHNSON CANYON JOSEPH GALLO FARMS CONSELLATION BRANDS JACKSON FAMILY ESTATES JACKSON FAMILY ESTATES JOHN HANCOCK LIFE INSURANCE COMPANY ASELLUS- MONTEREY GLOBAL AG PROPERTIES II

Water Information 20

Two Approved Deep Well Permits 22

Deep Well Water Analysis Information Pump #1 and #2 23

Pump Test Information Pump #1 24

Pump Test Information Pump #2 25

Pump Test Information Pump #2 26

Pump Test Information Pump #4 27

Pump Test Information Pump #5 28

Property Details Diesel Lift Pump #3 Ag Well #1 Lift Pump #4 Ag Well #2 Domestic Well #5 29

Soil Information 30

Soil Map- Monterey County, California

8 6 MAP: Hole Number Location for Soil Sample Reference 2 124 5 110 97 32

How to read the soil sample description HIEFIER RCH 2 1-2 Hole # Location on Map Depth of sample 1-2 equals the sample portion was taken from 1-2 feet in the soil pit 33

General Facts 41